275 W 1st St

Schell City, MO 64783

$19,500D+

2 bd · 1.0 ba · 1,100 sqft · Built 1900 · SingleFamily · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $947/mo
• Mortgage (P&I): −$102
• Tax + insurance: −$23
• HOA: −$0
• Vac / Maint / Mgmt: −$199
• Net cashflow: $623/mo
• Annual: $7,474/yr
• Cap rate: 44.62%
• Cash-on-cash: 136.89%
• DSCR: 7.09
• 1% rule: 4.86%
• Cash to close: $5,460

Investor read

• This is a 2-bed/1.0-bath single-family listed at $20k.
• At list price, monthly cash flow is $623 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($947 rent vs $20k).
• It's been on market 78 days — a 6% lower offer ($18k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $18k (6.0% below list) — sets the bar for market timing.
• In year one you build about $523 of equity ($135 loan paydown + $388 appreciation (2.0% local appreciation)).
• Location reads 56/100 on livability (#711 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: schools F, crime F, amenities F.
• Northeast Vernon County R-I (rural): math 20% / reading 35% proficiency, ranked #485 of 535 in MO (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 57 units permitted in Vernon County in 2024 (38 in 5+ unit buildings).
• Vernon County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $3k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.0% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.
• 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.

Questions for listing agent

• It's been on market 78 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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.