234 Cool Valley Dr

Murphy, MO 63026

$305,000C+

16 bd · 16.0 ba · 2,128 sqft · Built 1960 · MultiFamily · Active · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,480/mo
• Mortgage (P&I): −$1,599
• Tax + insurance: −$721
• HOA: −$0
• Vac / Maint / Mgmt: −$1,361
• Net cashflow: $2,799/mo
• Annual: $33,589/yr
• Cap rate: 18.98%
• Cash-on-cash: 45.33%
• DSCR: 3.02
• 1% rule: 2.12%
• Cash to close: $85,400

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $305k.
• At list price, monthly cash flow is $3k ($34k/yr) — positive. Per door: $700/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $305k).
• It's been on market 36 days — a 3% lower offer ($296k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $296k (3.0% 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 $9k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#461 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, employment D+, amenities F.
• Fox C-6 (suburban): math 35% / reading 50% proficiency, ranked #103 of 324 in MO (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Meramec Heights Elem. (math 39% / reading 42%, grade F, #525 of 1,115 statewide, top 47%, 425 students, 52% FRL); Fox Sr. High (math 12% / reading 57%, grade F, #321 of 521 statewide, top 67%, 1,742 students, 28% FRL).
• Watch-outs: flood insurance adds $427/mo.
• Market conditions: Rents rising fast (+7.7%/yr); 146 active listings in the ZIP; solid renter incomes; 807 units permitted in Jefferson County in 2024 (104 in 5+ unit buildings).
• 2 sale attempts since 4y 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.
• At projected returns (-3.0% appreciation + 7.7% rent growth), your $85k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.0% vs local median 3.0% in Murphy — 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 $6,480/mo this rent would consume 80% of the median local household income ($98k/yr) (locally 513% 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 36 days. Have you received any prior offers? Is the seller open to a 3% 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?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 D 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?