997 E 394th Rd

Bolivar, MO 65613

$149,900C-

3 bd · 3.0 ba · 1,560 sqft · Built 2001 · Other · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,224/mo
• Mortgage (P&I): −$786
• Tax + insurance: −$97
• HOA: −$0
• Vac / Maint / Mgmt: −$257
• Net cashflow: $83/mo
• Annual: $1,001/yr
• Cap rate: 6.96%
• Cash-on-cash: 2.39%
• DSCR: 1.11
• 1% rule: 0.82%
• Cash to close: $41,972

Investor read

• This is a 3-bed/3.0-bath other listed at $150k.
• At list price, monthly cash flow is $83 ($1k/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 $122k (18.4% below list).
• It's been on market 88 days — a 6% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (18.4% 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 $4k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#215 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, employment D-.
• Bolivar R-I (town): math 42% / reading 48% proficiency, ranked #101 of 324 in MO (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bolivar Intermediate Sch. (math 48% / reading 47%, grade D, #342 of 1,115 statewide, top 31%, 598 students, 52% FRL); Bolivar Middle (math 37% / reading 44%, grade F, #180 of 391 statewide, top 47%, 601 students, 48% FRL); Bolivar High (math 42% / reading 63%, grade C-, #89 of 521 statewide, top 17%, 839 students, 42% FRL) — zoned schools at 47% FRL track the district average.
• Market conditions: 202 active listings in the ZIP; 188 units permitted in Polk County in 2024 (40 in 5+ unit buildings).
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.0% vs local median 3.0% in Bolivar — 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.

Questions for listing agent

• It's been on market 88 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• 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.
• 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.