1104 Highland St

Cabool, MO 65689

$120,000D+

2 bd · 1.0 ba · 960 sqft · Built 1980 · Other · Pending · 154 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $868/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$182
• Net cashflow: $-92/mo
• Annual: $-1,099/yr
• Cap rate: 6.04%
• Cash-on-cash: -0.90%
• DSCR: 0.96
• 1% rule: 0.72%
• Cash to close: $33,600

Investor read

• This is a 2-bed/1.0-bath other listed at $120k.
• At list price, monthly cash flow is $-92 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $104k (13.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $87k (27.7% below list).
• It's been on market 154 days — a 12% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (27.7% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($830 loan paydown + $11k appreciation (9.5% local appreciation)).
• Location reads 67/100 on livability (#218 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A, housing A-; Watch: amenities F, commute F, employment F.
• Cabool R-IV (rural): math 22% / reading 39% proficiency, ranked #275 of 324 in MO (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Cabool Elem. (math 27% / reading 37%, grade F, #761 of 1,115 statewide, top 72%, 340 students, 98% FRL); Cabool Middle (math 21% / reading 40%, grade F, #283 of 391 statewide, top 74%, 222 students, 100% FRL); Cabool High (math 15% / reading 34%, grade F, #436 of 521 statewide, top 85%, 207 students, 100% FRL) — zoned schools average 99% FRL vs 57% district-wide (42 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 63 active listings in the ZIP; 10 units permitted in Texas County in 2024 (5 in 5+ unit buildings).
• Texas County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.0% in Cabool — 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

• 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?
• It's been on market 154 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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?
• 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.