3187 State Highway Hh

Urbana, MO 65663

$110,000C-

2 bd · 1.0 ba · 990 sqft · Built 1991 · Manufactured · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $889/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$69
• HOA: −$0
• Vac / Maint / Mgmt: −$187
• Net cashflow: $57/mo
• Annual: $680/yr
• Cap rate: 6.91%
• Cash-on-cash: 2.21%
• DSCR: 1.10
• 1% rule: 0.81%
• Cash to close: $30,800

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $110k.
• At list price, monthly cash flow is $57 ($680/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 $89k (19.1% below list).
• It's been on market 33 days — a 3% lower offer ($107k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $89k (19.1% below list) — sets the bar for 1% rule.
• In year one you build about $8k of equity ($761 loan paydown + $7k appreciation (6.4% local appreciation)).
• Location reads 57/100 on livability (#629 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Hickory County R-I (rural): math 65% / reading 66% proficiency, ranked #8 of 324 in MO (top 2%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Skyline Elem. (math 82% / reading 82%, grade A+, #4 of 1,115 statewide, top 0%, 306 students, 45% FRL); Skyline Middle (math 57% / reading 59%, grade B, #26 of 391 statewide, top 7%, 206 students, 40% FRL); Skyline High (math 64% / reading 74%, grade B, #10 of 521 statewide, top 2%, 215 students, 38% FRL) — zoned schools at 41% FRL track the district average.
• Market conditions: 14 active listings in the ZIP; 188 units permitted in Polk County in 2024 (40 in 5+ unit buildings).
• At projected returns (6.4% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 6.9% vs local median 4.0% in Urbana — 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

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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?
• 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.