18615 137th St

Pattonsburg, MO 64670

$132,500C-

2 bd · 3.0 ba · 2,525 sqft · Built 1933 · Other · Active · 313 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,055/mo
• Mortgage (P&I): −$695
• Tax + insurance: −$83
• HOA: −$0
• Vac / Maint / Mgmt: −$221
• Net cashflow: $55/mo
• Annual: $657/yr
• Cap rate: 6.79%
• Cash-on-cash: 1.77%
• DSCR: 1.08
• 1% rule: 0.80%
• Cash to close: $37,100

Investor read

• This is a 2-bed/3.0-bath other listed at $132k.
• At list price, monthly cash flow is $55 ($657/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (20.4% below list).
• It's been on market 313 days — a 12% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $105k (20.4% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($916 loan paydown + $12k appreciation (9.3% local appreciation)).
• Location reads 51/100 on livability (#872 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime F, amenities F, commute F.
• Pattonsburg R-II (rural): math 40% / reading 40% proficiency, ranked #317 of 535 in MO (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pattonsburg Elem. (math 42% / reading 32%, grade F, #611 of 1,115 statewide, top 59%, 107 students, 77% FRL); Pattonsburg High (math 44% / reading 54%, grade D, #124 of 521 statewide, top 28%, 87 students, 63% FRL) — zoned schools average 70% FRL vs 42% district-wide (28 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1933 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 15 active listings in the ZIP.
• Daviess County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $52k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (9.3% appreciation + 3.0% rent growth), your $37k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 313 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
• Built in 1933 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.