203 W 5th St

Galena, MO 65656

$68,000B+

3 bd · 2.0 ba · 1,040 sqft · Built 1960 · Other · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,017/mo
• Mortgage (P&I): −$357
• Tax + insurance: −$55
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $392/mo
• Annual: $4,703/yr
• Cap rate: 13.21%
• Cash-on-cash: 24.70%
• DSCR: 2.10
• 1% rule: 1.50%
• Cash to close: $19,040

Investor read

• This is a 3-bed/2.0-bath other listed at $68k.
• At list price, monthly cash flow is $392 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $68k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $7k of equity ($470 loan paydown + $7k appreciation (10.0% local appreciation)).
• Location reads 60/100 on livability (#513 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, crime B+; Watch: health & safety C-, amenities F, commute F.
• Galena R-II (rural): math 15% / reading 33% proficiency, ranked #295 of 324 in MO (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Galena-Abesville Elem. (math 22% / reading 27%, grade F, #879 of 1,115 statewide, top 81%, 196 students, 70% FRL); Galena High (math 8% / reading 37%, grade F, #459 of 521 statewide, top 88%, 222 students, 70% FRL) — zoned schools average 70% FRL vs 54% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 120 active listings in the ZIP; 191 units permitted in Stone County in 2024 (0 in 5+ unit buildings).
• Stone County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 19y 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 (10.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→21/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1960 — 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.