205 W 5th St

Pineville, MO 64856

$199,000D

4 bd · 2.0 ba · 1,434 sqft · Built 1920 · Other · Active · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,612/mo
• Mortgage (P&I): −$1,044
• Tax + insurance: −$332
• HOA: −$0
• Vac / Maint / Mgmt: −$339
• Net cashflow: $-102/mo
• Annual: $-1,221/yr
• Cap rate: 5.68%
• Cash-on-cash: -2.19%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $55,720

Investor read

• This is a 4-bed/2.0-bath other listed at $199k.
• At list price, monthly cash flow is $-102 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $184k (7.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $161k (19.0% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $161k (19.0% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($1k loan paydown + $10k appreciation (5.2% local appreciation)).
• Location reads 61/100 on livability (#447 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B+; Watch: crime F, amenities F, commute F.
• Mcdonald County R-I (rural): math 34% / reading 41% proficiency, ranked #192 of 324 in MO (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Pineville Primary (100 students, 48% FRL); Pineville Elem. (math 37% / reading 47%, grade D-, #149 of 391 statewide, top 41%, 121 students, 55% FRL); Mcdonald County High (math 15% / reading 52%, grade F, #349 of 521 statewide, top 67%, 1,051 students, 59% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 48 active listings in the ZIP; 20 units permitted in McDonald County in 2024 (0 in 5+ unit buildings).
• McDonald County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 5y 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.
• By year 4, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Built in 1920 — 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.