506 7th St

Fisk, MO 63940

$119,900D+

3 bd · 1.0 ba · 1,352 sqft · Built 1975 · Other · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,157/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$215
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $71/mo
• Annual: $849/yr
• Cap rate: 8.25%
• Cash-on-cash: 7.01%
• DSCR: 1.31
• 1% rule: 0.97%
• Cash to close: $33,572

Investor read

• This is a 3-bed/1.0-bath other listed at $120k.
• At list price, monthly cash flow is $71 ($849/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 $116k (3.5% below list).
• It's been on market 41 days — a 3% lower offer ($116k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (3.5% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($829 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 62/100 on livability (#380 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety C-, crime F.
• Twin Rivers R-X (rural): math 27% / reading 39% proficiency, ranked #250 of 324 in MO (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fisk Elementary (math 23% / reading 35%, grade F, #842 of 1,115 statewide, top 76%, 345 students, 89% FRL); Qulin Middle (math 42% / reading 42%, grade D-, #149 of 391 statewide, top 41%, 120 students, 82% FRL); Twin Rivers High (math 5% / reading 52%, grade F, #409 of 521 statewide, top 79%, 249 students, 90% FRL) — zoned schools average 87% FRL vs 57% district-wide (30 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 6 active listings in the ZIP; 63 units permitted in Butler County in 2024 (48 in 5+ unit buildings).
• Butler County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts since 5y 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 + 3.0% rent growth), your $34k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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 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.