109 Cottage Ln

McCord Bend, MO 65624

$139,900D

2 bd · 1.5 ba · 900 sqft · Built 1996 · Other · Active · 307 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $841/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$84
• HOA: −$0
• Vac / Maint / Mgmt: −$177
• Net cashflow: $-153/mo
• Annual: $-1,833/yr
• Cap rate: 4.98%
• Cash-on-cash: -4.68%
• DSCR: 0.79
• 1% rule: 0.60%
• Cash to close: $39,172

Investor read

• This is a 2-bed/1.5-bath other listed at $140k.
• At list price, monthly cash flow is $-153 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $113k (19.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $84k (39.9% below list).
• It's been on market 307 days — a 12% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (39.9% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($967 loan paydown + $6k appreciation (4.0% local appreciation)).
• Location reads 51/100 on livability (#875 in MO) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Galena R-II (rural): math 15% / reading 33% proficiency, ranked #295 of 324 in MO (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Galena-Abesville Elem. (math 22% / reading 27%, grade F, #879 of 1,115 statewide, top 81%, 196 students, 70% FRL); Galena High (math 8% / reading 37%, grade F, #459 of 521 statewide, top 88%, 222 students, 70% FRL) — zoned schools average 70% FRL vs 54% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 79 active listings in the ZIP; 191 units permitted in Stone County in 2024 (0 in 5+ unit buildings).
• Stone County population projected at -30% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $89k (39%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 5.0% vs local median 1.3% in McCord Bend — 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 307 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• This sits on a lake — are riparian / water-frontage rights deeded with the parcel? Any dock permits, shoreline easements, or HOA water-use restrictions?