1649 Talking Rocks Rd

Indian Point, MO 65737

$225,000F

2 bd · 2.0 ba · 1,596 sqft · Built 1993 · Other · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,335/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$155
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $-281/mo
• Annual: $-3,370/yr
• Cap rate: 4.80%
• Cash-on-cash: -5.35%
• DSCR: 0.76
• 1% rule: 0.59%
• Cash to close: $63,000

Investor read

• This is a 2-bed/2.0-bath other listed at $225k.
• At list price, monthly cash flow is $-281 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $175k (22.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (40.7% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $133k (40.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-2.2%/yr); year-one equity from $2k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#369 in MO) — a middle-class / working-renter tenant base. Strengths: crime A, housing A-; Watch: health & safety C-, cost of living D+, amenities F.
• Reeds Spring R-IV (rural): math 34% / reading 42% proficiency, ranked #182 of 324 in MO (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Reeds Spring Elem. (math 33% / reading 33%, grade F, #744 of 1,115 statewide, top 67%, 358 students, 62% FRL); Reeds Spring Middle (math 31% / reading 46%, grade F, #202 of 391 statewide, top 54%, 286 students, 56% FRL); Reeds Spring High (math 32% / reading 47%, grade F, #247 of 521 statewide, top 55%, 602 students, 47% FRL) — zoned schools at 55% FRL track the district average.
• Market conditions: 341 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.
• 3 sale attempts 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.
• Cap rate 4.8% vs local median 1.2% in Indian Point — 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?
• 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.
• 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.