712 - 714 Arcadia St

Warsaw, MO 65355

$319,999F

4 bd · 2.5 ba · 2,184 sqft · Built 1987 · MultiFamily · Active · 67 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,920/mo
• Mortgage (P&I): −$1,678
• Tax + insurance: −$268
• HOA: −$0
• Vac / Maint / Mgmt: −$403
• Net cashflow: $-429/mo
• Annual: $-5,146/yr
• Cap rate: 4.68%
• Cash-on-cash: -5.74%
• DSCR: 0.74
• 1% rule: 0.60%
• Cash to close: $89,600

Investor read

• This is a 1×2.0bd/1.5ba + 1×2.0bd/1.0ba units multifamily listed at $320k.
• At list price, monthly cash flow is $-429 ($-5k/yr) — negative. Per door: $-214/mo.
• To cash-flow at today's rent, offer at most $244k (23.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $192k (40.0% below list).
• It's been on market 67 days — a 6% lower offer ($301k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $192k (40.0% below list) — sets the bar for 1% rule.
• In year one you build about $20k of equity ($2k loan paydown + $17k appreciation (5.5% local appreciation)).
• Location reads 63/100 on livability (#332 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D-, amenities F, commute F.
• Warsaw R-IX (rural): math 30% / reading 42% proficiency, ranked #222 of 324 in MO (top 68%) — 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: John Boise Middle School (math 37% / reading 40%, grade F, #202 of 391 statewide, top 54%, 278 students, 99% FRL); Warsaw High School (math 27% / reading 52%, grade F, #247 of 521 statewide, top 55%, 403 students, 99% FRL) — zoned schools average 99% FRL vs 61% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 275 active listings in the ZIP; 9 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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.
• By year 2, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.7% vs local median 3.4% in Warsaw — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• It's been on market 67 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• 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 F-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 D 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?