5566 Bonnie Spring Valley Dr

Climax Springs, MO 65078

$175,000D

2 bd · 1.0 ba · 1,574 sqft · Built 1963 · Other · Active · 75 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,074/mo
• Mortgage (P&I): −$918
• Tax + insurance: −$134
• HOA: −$0
• Vac / Maint / Mgmt: −$226
• Net cashflow: $-203/mo
• Annual: $-2,436/yr
• Cap rate: 4.90%
• Cash-on-cash: -4.97%
• DSCR: 0.78
• 1% rule: 0.61%
• Cash to close: $49,000

Investor read

• This is a 2-bed/1.0-bath other listed at $175k.
• At list price, monthly cash flow is $-203 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $139k (20.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $107k (38.6% below list).
• It's been on market 75 days — a 6% lower offer ($164k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (38.6% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($1k loan paydown + $12k appreciation (6.9% local appreciation)).
• Location reads 50/100 on livability (#910 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, employment F.
• Morgan County R-I (rural): math 38% / reading 41% proficiency, ranked #173 of 324 in MO (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Morgan Co. R-I Elem. (math 37% / reading 35%, grade F, #662 of 1,115 statewide, top 60%, 410 students, 99% FRL); Morgan Co. R-I High (math 39% / reading 47%, grade F, #211 of 521 statewide, top 41%, 420 students, 99% FRL) — zoned schools average 99% FRL vs 56% district-wide (43 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 83 active listings in the ZIP; 14 units permitted in Morgan County in 2024 (0 in 5+ unit buildings).
• Morgan County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 7y ago 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 3, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.9% vs local median 0.6% in Climax Springs — 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 75 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1963 — 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 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?
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?