1102 Madison Ave

Caruthersville, MO 63830

$10,000D+

3 bd · 1.0 ba · 1,305 sqft · Built 1955 · Other · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,063/mo
• Mortgage (P&I): −$52
• Tax + insurance: −$454
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $334/mo
• Annual: $4,002/yr
• Cap rate: 97.50%
• Cash-on-cash: 325.73%
• DSCR: 15.49
• 1% rule: 10.63%
• Cash to close: $2,800

Investor read

• This is a 3-bed/1.0-bath other listed at $10k.
• At list price, monthly cash flow is $334 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $10k).
• It's been on market 30 days — a 2% lower offer ($10k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-1.3%/yr); year-one equity from $69 of loan paydown is wiped out by about $130 of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#780 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Caruthersville 18 (town): math 14% / reading 24% proficiency, ranked #307 of 324 in MO (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 69% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Caruthersville Elementary (math 21% / reading 23%, grade F, #910 of 1,115 statewide, top 83%, 496 students, 99% FRL); Caruthersville High (math 2% / reading 44%, grade F, #453 of 521 statewide, top 87%, 258 students, 99% FRL) — zoned schools average 99% FRL vs 69% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 2.8% of price; flood insurance adds $427/mo; built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 17 units permitted in Pemiscot County in 2024 (10 in 5+ unit buildings).
• Pemiscot County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 6y ago; this cycle's ask has dropped $6k (38%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-1.3% appreciation + 3.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.