2802 2nd St

Vandiver, MO 65265

$169,500D

3 bd · 1.0 ba · 1,064 sqft · Built 1960 · Other · Pending · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,296/mo
• Mortgage (P&I): −$889
• Tax + insurance: −$123
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $12/mo
• Annual: $138/yr
• Cap rate: 6.37%
• Cash-on-cash: 0.29%
• DSCR: 1.01
• 1% rule: 0.76%
• Cash to close: $47,460

Investor read

• This is a 3-bed/1.0-bath other listed at $170k.
• At list price, monthly cash flow is $12 ($138/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $130k (23.5% below list).
• It's been on market 20 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $130k (23.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 54/100 on livability (#771 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: employment D, amenities F, commute F.
• Mexico 59 (town): math 31% / reading 38% proficiency, ranked #229 of 324 in MO (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mcmillan Early Learning Center (360 students, 100% FRL); Mexico Middle (math 33% / reading 34%, grade F, #260 of 391 statewide, top 67%, 503 students, 100% FRL); Mexico High (math 22% / reading 47%, grade F, #321 of 521 statewide, top 67%, 746 students, 53% FRL) — zoned schools average 84% FRL vs 52% district-wide (32 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 136 active listings in the ZIP; 27 units permitted in Audrain County in 2024 (0 in 5+ unit buildings).
• Audrain County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 9y 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.

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?
• 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.