3501 State Highway 96

La Russell, MO 64848

$145,000D-

3 bd · 1.0 ba · 1,055 sqft · Built 1950 · Other · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,001/mo
• Mortgage (P&I): −$760
• Tax + insurance: −$100
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $-69/mo
• Annual: $-833/yr
• Cap rate: 5.72%
• Cash-on-cash: -2.05%
• DSCR: 0.91
• 1% rule: 0.69%
• Cash to close: $40,600

Investor read

• This is a 3-bed/1.0-bath other listed at $145k.
• At list price, monthly cash flow is $-69 ($-833/yr) — negative.
• To cash-flow at today's rent, offer at most $133k (8.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $100k (31.0% below list).
• It's been on market 18 days — a 2% lower offer ($143k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $100k (31.0% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($1k loan paydown + $5k appreciation (3.3% local appreciation)).
• Location reads 51/100 on livability (#871 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: housing D+, crime F, amenities F.
• Miller R-II (rural): math 25% / reading 33% proficiency, ranked #276 of 324 in MO (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Miller High (math 12% / reading 32%, grade F, #462 of 521 statewide, top 90%, 288 students, 54% FRL) — zoned schools at 54% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 67 units permitted in Lawrence County in 2024 (35 in 5+ unit buildings).
• Lawrence County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts 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 (3.3% appreciation + 3.0% rent growth), your $41k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 1950 — 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.