23130 Salley Dr

Warsaw, MO 65355

$129,000D

2 bd · 1.0 ba · 672 sqft · Built — · SingleFamily · Active · 153 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,075/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$215
• HOA: −$5
• Vac / Maint / Mgmt: −$226
• Net cashflow: $-47/mo
• Annual: $-568/yr
• Cap rate: 5.85%
• Cash-on-cash: -1.57%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $36,120

Investor read

• This is a 2-bed/1.0-bath single-family listed at $129k. Condition is rated fair.
• At list price, monthly cash flow is $-47 ($-568/yr) — negative.
• To cash-flow at today's rent, offer at most $122k (5.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $107k (16.7% below list).
• It's been on market 153 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $107k (16.7% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($892 loan paydown + $7k appreciation (5.5% local appreciation)).
• Location reads 63/100 on livability (#332 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D-, amenities F, commute F.
• Warsaw R-IX (rural): math 30% / reading 42% proficiency, ranked #222 of 324 in MO (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: John Boise Middle School (math 37% / reading 40%, grade F, #202 of 391 statewide, top 54%, 278 students, 99% FRL); Warsaw High School (math 27% / reading 52%, grade F, #247 of 521 statewide, top 55%, 403 students, 99% FRL) — zoned schools average 99% FRL vs 61% district-wide (38 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 275 active listings in the ZIP; 9 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $21k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (5.5% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.9% vs local median 3.4% in Warsaw — 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 153 days. Have you received any prior offers? Is the seller open to a 17% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• Crime grade is D 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?

Repairs flagged (vision-AI assessment)

• Major: kitchen cabinets — The cabinets are outdated and need replacement.
• Major: bathroom fixtures — The fixtures are outdated and need updating.
• Major: flooring — The carpet is worn and should be replaced or refinished.
• Minor: paint — The paint quality is average and could be refreshed.
• Major: landscaping — The landscaping is minimal and should be improved for curb appeal.