2018 Farlook St

Merriam Woods, MO 65740

$55,000B+

2 bd · 2.0 ba · 842 sqft · Built 1979 · Other · Pending · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,320/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$48
• HOA: −$0
• Vac / Maint / Mgmt: −$277
• Net cashflow: $706/mo
• Annual: $8,472/yr
• Cap rate: 21.70%
• Cash-on-cash: 55.01%
• DSCR: 3.45
• 1% rule: 2.40%
• Cash to close: $15,400

Investor read

• This is a 2-bed/2.0-bath other listed at $55k.
• At list price, monthly cash flow is $706 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• It's been on market 53 days — a 3% lower offer ($53k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $53k (3.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($380 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#444 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: health & safety C-, amenities F, commute F.
• Branson R-IV (rural): math 48% / reading 52% proficiency, ranked #44 of 324 in MO (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Branson Jr. High (math 48% / reading 49%, grade C-, #81 of 391 statewide, top 21%, 724 students, 51% FRL); Branson High (math 42% / reading 56%, grade D, #145 of 521 statewide, top 28%, 1,423 students, 46% FRL) — zoned schools at 48% FRL track the district average.
• Market conditions: 99 active listings in the ZIP; 331 units permitted in Taney County in 2024 (50 in 5+ unit buildings).
• Taney County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 21.7% vs local median 6.8% in Merriam Woods — 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 53 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1979 — 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 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.