1688 E 562nd Rd

Pleasant Hope, MO 65617

$130,000C-

3 bd · 3.0 ba · 1,056 sqft · Built 1978 · Other · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,047/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$101
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $45/mo
• Annual: $535/yr
• Cap rate: 6.70%
• Cash-on-cash: 1.47%
• DSCR: 1.07
• 1% rule: 0.81%
• Cash to close: $36,400

Investor read

• This is a 3-bed/3.0-bath other listed at $130k.
• At list price, monthly cash flow is $45 ($535/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 (19.4% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $105k (19.4% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($899 loan paydown + $13k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#413 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Pleasant Hope R-VI (rural): math 21% / reading 35% proficiency, ranked #281 of 324 in MO (top 87%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Pleasant Hope Elem. (math 27% / reading 42%, grade F, #676 of 1,115 statewide, top 66%, 268 students, 58% FRL); Pleasant Hope Middle (math 19% / reading 33%, grade F, #316 of 391 statewide, top 81%, 202 students, 67% FRL); Pleasant Hope High (math 15% / reading 34%, grade F, #436 of 521 statewide, top 85%, 282 students, 53% FRL).
• Market conditions: 24 active listings in the ZIP; 188 units permitted in Polk County in 2024 (40 in 5+ unit buildings).
• 2 sale attempts since 12y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.