311 E 7th St

Lockwood, MO 65682

$75,900B

2 bd · 1.0 ba · 1,058 sqft · Built 1945 · Other · Pending · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $975/mo
• Mortgage (P&I): −$398
• Tax + insurance: −$59
• HOA: −$0
• Vac / Maint / Mgmt: −$205
• Net cashflow: $313/mo
• Annual: $3,761/yr
• Cap rate: 11.25%
• Cash-on-cash: 17.70%
• DSCR: 1.79
• 1% rule: 1.28%
• Cash to close: $21,252

Investor read

• This is a 2-bed/1.0-bath other listed at $76k.
• At list price, monthly cash flow is $313 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($975 rent vs $76k).
• It's been on market 50 days — a 3% lower offer ($74k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $74k (3.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($525 loan paydown + $4k appreciation (5.9% local appreciation)).
• Location reads 68/100 on livability (#180 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, employment F.
• Lockwood R-I (rural): math 30% / reading 40% proficiency, ranked #398 of 535 in MO (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lockwood Elem. (math 42% / reading 37%, grade F, #537 of 1,115 statewide, top 53%, 150 students, 56% FRL); Lockwood Middle School (math 15% / reading 34%, grade F, #323 of 391 statewide, top 83%, 50 students, 58% FRL); Lockwood High (math 30% / reading 50%, grade F, #244 of 521 statewide, top 47%, 97 students, 50% FRL) — zoned schools at 55% FRL track the district average.
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 10 active listings in the ZIP.
• Dade County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 10 sale attempts since 18y 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 (5.9% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→19/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 50 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1945 — 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.
• 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.