12385 State Route CC

Rolla, MO 65401

$218,000B-

None bd · None ba · 2,054 sqft · Built 1966 · MultiFamily · Active · 250 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,507/mo
• Mortgage (P&I): −$1,143
• Tax + insurance: −$363
• HOA: −$0
• Vac / Maint / Mgmt: −$526
• Net cashflow: $474/mo
• Annual: $5,688/yr
• Cap rate: 8.90%
• Cash-on-cash: 9.32%
• DSCR: 1.41
• 1% rule: 1.15%
• Cash to close: $61,040

Investor read

• This is a 2 × 3-bed/1-bath units multifamily listed at $218k. Condition is rated fair.
• At list price, monthly cash flow is $474 ($6k/yr) — positive. Per door: $237/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $218k).
• It's been on market 250 days — a 12% lower offer ($192k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $192k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#76 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime D, commute F, employment D-.
• Rolla 31 (town): math 38% / reading 48% proficiency, ranked #118 of 324 in MO (top 36%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising fast (+10.2%/yr); 270 active listings in the ZIP; 162 units permitted in Phelps County in 2024 (83 in 5+ unit buildings).
• Phelps County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $61k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 8.9% vs local median 3.5% in Rolla — 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 $2,507/mo this rent would consume 54% of the median local household income ($56k/yr) (locally 1122% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 250 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1966 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?

Repairs flagged (vision-AI assessment)

• Major: carport — Structural damage
• Major: exterior siding — Overgrown vegetation
• Major: interior walls — Worn paint
• Major: kitchen appliances — Outdated and cluttered
• Major: bathroom fixtures — Outdated and cluttered
• Major: carpet — Worn and outdated