511 E 7th St

Miller, MO 65707

$120,000D

3 bd · 1.0 ba · 1,034 sqft · Built 1900 · SingleFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,007/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$200
• HOA: −$0
• Vac / Maint / Mgmt: −$211
• Net cashflow: $-34/mo
• Annual: $-406/yr
• Cap rate: 5.95%
• Cash-on-cash: -1.21%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $33,600

Investor read

• This is a 3-bed/1.0-bath single-family listed at $120k. Condition is rated poor.
• At list price, monthly cash flow is $-34 ($-406/yr) — negative.
• To cash-flow at today's rent, offer at most $115k (4.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (16.1% below list).
• It's been on market 15 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (16.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#405 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Miller R-II (rural): math 25% / reading 33% proficiency, ranked #276 of 324 in MO (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Central Elem. (math 37% / reading 37%, grade F, #611 of 1,115 statewide, top 59%, 300 students, 64% FRL); Miller High (math 12% / reading 32%, grade F, #462 of 521 statewide, top 90%, 288 students, 54% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 67 units permitted in Lawrence County in 2024 (35 in 5+ unit buildings).
• Lawrence County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 8y 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.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — 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 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exposed brick in kitchen — Structural damage
• Major: Exposed plumbing in bathrooms — Safety hazard
• Major: Damaged metal roof — Leakage risk
• Major: Damaged siding — Structural integrity
• Major: Exposed insulation — Energy inefficiency
• Major: Missing cabinets in kitchen — Functionality