117 E Russell St

Goodman, MO 64843

$157,900D

3 bd · 1.5 ba · 948 sqft · Built 1964 · Other · Pending · 237 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,091/mo
• Mortgage (P&I): −$828
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$229
• Net cashflow: $-59/mo
• Annual: $-708/yr
• Cap rate: 5.84%
• Cash-on-cash: -1.60%
• DSCR: 0.93
• 1% rule: 0.69%
• Cash to close: $44,212

Investor read

• This is a 3-bed/1.5-bath other listed at $158k.
• At list price, monthly cash flow is $-59 ($-708/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (6.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $109k (30.9% below list).
• It's been on market 237 days — a 12% lower offer ($139k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $109k (30.9% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($1k loan paydown + $11k appreciation (6.7% local appreciation)).
• Location reads 64/100 on livability (#325 in MO) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Neosho School District (town): math 36% / reading 48% proficiency, ranked #125 of 324 in MO (top 39%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Goodman Elem. (math 42% / reading 47%, grade F, #413 of 1,115 statewide, top 42%, 255 students, 76% FRL); Neosho Jr. High (math 41% / reading 48%, grade D, #113 of 391 statewide, top 31%, 748 students, 58% FRL); Neosho High (math 21% / reading 57%, grade F, #287 of 521 statewide, top 55%, 1,491 students, 48% FRL).
• Market conditions: 43 active listings in the ZIP; 20 units permitted in McDonald County in 2024 (0 in 5+ unit buildings).
• McDonald County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 9 sale attempts since 5y 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 (6.7% appreciation + 3.0% rent growth), your $44k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 237 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1964 — 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?
• 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.