806 Andrew St

Jackson, MO 63755

$25,460D+

3 bd · 1.0 ba · 1,008 sqft · Built 1989 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,331/mo
• Mortgage (P&I): −$134
• Tax + insurance: −$82
• HOA: −$0
• Vac / Maint / Mgmt: −$280
• Net cashflow: $836/mo
• Annual: $10,037/yr
• Cap rate: 45.71%
• Cash-on-cash: 140.79%
• DSCR: 7.26
• 1% rule: 5.23%
• Cash to close: $7,129

Investor read

• This is a 3-bed/1.0-bath single-family listed at $25k.
• At list price, monthly cash flow is $836 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $25k).
• It's been on market 15 days — a 2% lower offer ($25k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $25k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $176 of loan paydown is wiped out by about $764 of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#160 in MO) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Jackson R-II (suburban): math 41% / reading 51% proficiency, ranked #73 of 324 in MO (top 22%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Orchard Drive Elem. (math 37% / reading 42%, grade F, #537 of 1,115 statewide, top 53%, 388 students, 52% FRL); Jackson Sr. High (math 45% / reading 62%, grade C-, #83 of 521 statewide, top 16%, 1,764 students, 30% FRL).
• Watch-outs: property tax is 3.4% of price.
• Market conditions: Rents rising fast (+4.5%/yr); 176 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 81 units permitted in Cape Girardeau County in 2024 (0 in 5+ unit buildings).
• Cape Girardeau County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 4.5% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 45.7% vs local median 3.4% in Jackson — 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

• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.