4219 Old State Rd

De Soto, MO 63020

$124,500D-

3 bd · 1.0 ba · 960 sqft · Built 1971 · Other · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,052/mo
• Mortgage (P&I): −$653
• Tax + insurance: −$140
• HOA: −$67
• Vac / Maint / Mgmt: −$221
• Net cashflow: $-28/mo
• Annual: $-342/yr
• Cap rate: 6.02%
• Cash-on-cash: -0.98%
• DSCR: 0.96
• 1% rule: 0.84%
• Cash to close: $34,860

Investor read

• This is a 3-bed/1.0-bath other listed at $124k.
• At list price, monthly cash flow is $-28 ($-342/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (4.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (15.5% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $105k (15.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $861 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 59/100 on livability (#523 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Desoto 73 (town): math 36% / reading 43% proficiency, ranked #153 of 324 in MO (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Athena Elem. (math 33% / reading 40%, grade F, #656 of 1,115 statewide, top 59%, 489 students, 45% FRL); Desoto Jr. High (math 33% / reading 41%, grade F, #220 of 391 statewide, top 59%, 381 students, 46% FRL); Desoto Sr. High (math 37% / reading 53%, grade D-, #176 of 521 statewide, top 34%, 848 students, 34% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: 152 active listings in the ZIP; 807 units permitted in Jefferson County in 2024 (104 in 5+ unit buildings).
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.0% vs local median 3.7% in De Soto — 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?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.