204 2nd St

Sarcoxie, MO 64862

$220,000D-

5 bd · 3.0 ba · 2,080 sqft · Built 1900 · Other · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,161/mo
• Mortgage (P&I): −$1,154
• Tax + insurance: −$136
• HOA: −$0
• Vac / Maint / Mgmt: −$244
• Net cashflow: $-372/mo
• Annual: $-4,468/yr
• Cap rate: 4.26%
• Cash-on-cash: -7.25%
• DSCR: 0.68
• 1% rule: 0.53%
• Cash to close: $61,600

Investor read

• This is a 5-bed/3.0-bath other listed at $220k.
• At list price, monthly cash flow is $-372 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $154k (29.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $116k (47.2% below list).
• It's been on market 37 days — a 3% lower offer ($213k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (47.2% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#190 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A, crime B+; Watch: employment D, amenities F, commute F.
• Sarcoxie R-II (rural): math 30% / reading 32% proficiency, ranked #265 of 324 in MO (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wildwood Elem. (math 37% / reading 37%, grade F, #611 of 1,115 statewide, top 59%, 285 students, 70% FRL); Sarcoxie High (math 27% / reading 29%, grade F, #414 of 521 statewide, top 80%, 401 students, 72% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 20 active listings in the ZIP; 602 units permitted in Jasper County in 2024 (0 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 37 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.