233 Old Salem Rd

Licking, MO 65542

$64,000A-

3 bd · 1.0 ba · 1,150 sqft · Built 1942 · SingleFamily · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $996/mo
• Mortgage (P&I): −$336
• Tax + insurance: −$107
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $345/mo
• Annual: $4,136/yr
• Cap rate: 12.76%
• Cash-on-cash: 23.08%
• DSCR: 2.03
• 1% rule: 1.56%
• Cash to close: $17,920

Investor read

• This is a 3-bed/1.0-bath single-family listed at $64k. Condition is rated fair.
• At list price, monthly cash flow is $345 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($996 rent vs $64k).
• It's been on market 37 days — a 3% lower offer ($62k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $62k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($442 loan paydown + $2k 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: amenities F, commute F, employment 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.
• Zoned schools: Licking Elem. (math 32% / reading 38%, grade F, #672 of 1,115 statewide, top 60%, 416 students, 99% FRL); Licking High (math 27% / reading 52%, grade F, #247 of 521 statewide, top 55%, 423 students, 99% FRL) — zoned schools average 99% FRL vs 51% district-wide (49 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• 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.
• 2 sale attempts since 2y 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.
• At projected returns (3.2% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 12.8% 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 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1942 — 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen sink — Dirty and in need of cleaning.
• Major: Bathroom sink — Dirty and in need of cleaning.
• Major: Bathroom toilet — Dirty and in need of cleaning.
• Major: Bathroom bathtub — Dirty and in need of cleaning.
• Major: Landscaping — Overgrown and unkempt, detracting from curb appeal.