18233 County Road 361

Preston, MO 65732

$189,900D-

3 bd · 2.0 ba · 1,344 sqft · Built 2004 · Other · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,156/mo
• Mortgage (P&I): −$996
• Tax + insurance: −$131
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $-214/mo
• Annual: $-2,563/yr
• Cap rate: 4.94%
• Cash-on-cash: -4.82%
• DSCR: 0.79
• 1% rule: 0.61%
• Cash to close: $53,172

Investor read

• This is a 3-bed/2.0-bath other listed at $190k.
• At list price, monthly cash flow is $-214 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $152k (19.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (39.1% below list).
• It's been on market 17 days — a 2% lower offer ($187k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (39.1% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($1k loan paydown + $8k appreciation (4.3% local appreciation)).
• Location reads 50/100 on livability (#901 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: crime F, amenities F, commute F.
• Hickory County R-I (rural): math 65% / reading 66% proficiency, ranked #8 of 324 in MO (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Skyline Elem. (math 82% / reading 82%, grade A+, #4 of 1,115 statewide, top 0%, 306 students, 45% FRL); Skyline Middle (math 57% / reading 59%, grade B, #26 of 391 statewide, top 7%, 206 students, 40% FRL); Skyline High (math 64% / reading 74%, grade B, #10 of 521 statewide, top 2%, 215 students, 38% FRL) — zoned schools at 41% FRL track the district average.
• Market conditions: 9 active listings in the ZIP.
• Hickory County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Crime grade is F 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?
• 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.