513 N Old Hwy 63

Columbia, MO 65201

$925,000B

None bd · None ba · — sqft · Built 1971 · MultiFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $16,436/mo
• Mortgage (P&I): −$4,851
• Tax + insurance: −$1,542
• HOA: −$0
• Vac / Maint / Mgmt: −$3,452
• Net cashflow: $6,592/mo
• Annual: $79,104/yr
• Cap rate: 14.84%
• Cash-on-cash: 30.54%
• DSCR: 2.36
• 1% rule: 1.78%
• Cash to close: $259,000

Investor read

• This is a multifamily listed at $925k. Condition is rated poor.
• At list price, monthly cash flow is $7k ($79k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($16k rent vs $925k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $28k of value loss. Plan a longer hold.
• Location reads 83/100 on livability (#9 in MO, #862 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime D+.
• Columbia 93 (urban): math 30% / reading 43% proficiency, ranked #194 of 324 in MO (top 60%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Jefferson Middle School (math 45% / reading 54%, grade C, #74 of 391 statewide, top 20%, 625 students, 32% FRL); David H. Hickman High (math 27% / reading 55%, grade F, #236 of 521 statewide, top 45%, 2,044 students, 33% FRL) — zoned schools at 33% FRL track the district average.
• Market conditions: Rents rising fast (+10.3%/yr); 355 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,303 units permitted in Boone County in 2024 (549 in 5+ unit buildings).
• Boone County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $259k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 14.8% vs local median 2.9% in Columbia — 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.
• At $16,436/mo this rent would consume 410% of the median local household income ($48k/yr) (locally 4323% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1971 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: exterior paint — Significant chipping and fading
• Major: roof — Condition unknown, but weathered appearance suggests potential issues
• Major: landscaping — Overgrown and unkempt
• Major: fencing — Visible rust and damage