101 W Mill St

Shelbina, MO 63468

$85,500B

2 bd · 2.0 ba · 1,268 sqft · Built 1948 · Other · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,051/mo
• Mortgage (P&I): −$448
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$221
• Net cashflow: $288/mo
• Annual: $3,460/yr
• Cap rate: 10.34%
• Cash-on-cash: 14.45%
• DSCR: 1.64
• 1% rule: 1.23%
• Cash to close: $23,940

Investor read

• This is a 2-bed/2.0-bath other listed at $86k.
• At list price, monthly cash flow is $288 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $86k).
• It's been on market 22 days — a 2% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (1.5% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($591 loan paydown + $5k appreciation (6.4% local appreciation)).
• Location reads 68/100 on livability (#188 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: employment D, amenities F, commute F.
• Shelby County R-IV (rural): math 29% / reading 42% proficiency, ranked #224 of 324 in MO (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 4 units permitted in Shelby County in 2024 (0 in 5+ unit buildings).
• Shelby County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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 (6.4% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1948 — 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.
• 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.