1203 Highway J

Troy, MO 63379

$210,000F

3 bd · 2.0 ba · 1,216 sqft · Built 2005 · Manufactured · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,107/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$139
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-365/mo
• Annual: $-4,385/yr
• Cap rate: 4.20%
• Cash-on-cash: -7.46%
• DSCR: 0.67
• 1% rule: 0.53%
• Cash to close: $58,800

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $210k.
• At list price, monthly cash flow is $-365 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $145k (30.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $111k (47.3% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $111k (47.3% 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 $6k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#146 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities F, commute F.
• Troy R-III (town): math 40% / reading 47% proficiency, ranked #97 of 324 in MO (top 30%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lincoln Elem. (math 50% / reading 56%, grade C, #221 of 1,115 statewide, top 20%, 427 students, 30% FRL); Troy Middle (math 40% / reading 45%, grade D-, #140 of 391 statewide, top 38%, 761 students, 39% FRL); Troy Buchanan High (math 40% / reading 58%, grade D, #145 of 521 statewide, top 28%, 2,188 students, 26% FRL) — zoned schools at 31% FRL track the district average.
• Market conditions: 156 active listings in the ZIP; solid renter incomes; 149 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $18k; list at $210k implies a 1035% gain — meaningful room to come down on a strong offer.
• Cap rate 4.2% vs local median 2.9% in Troy — 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.
• This rent is only 15% of the median local income ($91k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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.
• 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.