97 S County Road 6170

Salem, MO 65560

$139,000D-

2 bd · 2.0 ba · 1,136 sqft · Built 1989 · Manufactured · Active · 240 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $827/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$82
• HOA: −$0
• Vac / Maint / Mgmt: −$174
• Net cashflow: $-157/mo
• Annual: $-1,889/yr
• Cap rate: 4.93%
• Cash-on-cash: -4.85%
• DSCR: 0.78
• 1% rule: 0.59%
• Cash to close: $38,920

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $139k.
• At list price, monthly cash flow is $-157 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $111k (20.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $83k (40.5% below list).
• It's been on market 240 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (40.5% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($961 loan paydown + $8k appreciation (5.7% local appreciation)).
• Location reads 69/100 on livability (#157 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime B; Watch: amenities C-, commute F, employment F.
• Green Forest R-II (rural): math 70% / reading 60% proficiency, ranked #24 of 535 in MO (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Green Forest Elem. (math 72% / reading 57%, grade B, #70 of 1,115 statewide, top 8%, 155 students, 52% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: 169 active listings in the ZIP; 3 units permitted in Dent County in 2024 (0 in 5+ unit buildings).
• Dent County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 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.
• By year 5, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.9% vs local median 2.7% in Salem — 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 240 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• 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 D-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.