316 State Route F

Koshkonong, MO 65692

$87,500C

2 bd · 1.0 ba · 900 sqft · Built 1930 · Other · Active · 103 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $847/mo
• Mortgage (P&I): −$459
• Tax + insurance: −$146
• HOA: −$0
• Vac / Maint / Mgmt: −$178
• Net cashflow: $64/mo
• Annual: $772/yr
• Cap rate: 7.18%
• Cash-on-cash: 3.15%
• DSCR: 1.14
• 1% rule: 0.97%
• Cash to close: $24,500

Investor read

• This is a 2-bed/1.0-bath other listed at $88k.
• At list price, monthly cash flow is $64 ($772/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 $85k (3.2% below list).
• It's been on market 103 days — a 9% lower offer ($80k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $80k (9.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($605 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 54/100 on livability (#803 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Oregon-Howell R-III (rural): math 15% / reading 25% proficiency, ranked #513 of 535 in MO (top 96%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Koshkonong Elem. (math 17% / reading 32%, grade F, #879 of 1,115 statewide, top 81%, 148 students, 64% FRL); Koshkonong High (math 10% / reading 30%, grade F, #472 of 521 statewide, top 91%, 78 students, 74% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 20 active listings in the ZIP; 5 units permitted in Oregon County in 2024 (0 in 5+ unit buildings).
• Oregon County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts 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 $24k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 10, 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; major wildfire risk; 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 103 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1930 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F-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?
• 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.