130 M- College Ave

Licking, MO 65542

$44,800B+

3 bd · 2.0 ba · 1,248 sqft · Built 2005 · Manufactured · Pending · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,043/mo
• Mortgage (P&I): −$235
• Tax + insurance: −$45
• HOA: −$0
• Vac / Maint / Mgmt: −$219
• Net cashflow: $545/mo
• Annual: $6,535/yr
• Cap rate: 20.88%
• Cash-on-cash: 52.10%
• DSCR: 3.32
• 1% rule: 2.33%
• Cash to close: $12,544

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $45k.
• At list price, monthly cash flow is $545 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $45k).
• It's been on market 54 days — a 3% lower offer ($43k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $43k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($310 loan paydown + $1k appreciation (3.2% local appreciation)).
• Location reads 65/100 on livability (#265 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: schools F, amenities F, commute F.
• Licking R-VIII (rural): math 30% / reading 44% proficiency, ranked #203 of 324 in MO (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 50 active listings in the ZIP; 10 units permitted in Texas County in 2024 (5 in 5+ unit buildings).
• Texas County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 13y ago; this cycle's ask has dropped $5k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.2% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 20.9% vs local median 3.3% in Licking — 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

• It's been on market 54 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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?
• 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.