214 Cherry St

Chillicothe, MO 64601

$48,500B-

4 bd · 1.0 ba · 1,415 sqft · Built 1920 · SingleFamily · Pending · 224 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,113/mo
• Mortgage (P&I): −$254
• Tax + insurance: −$44
• HOA: −$0
• Vac / Maint / Mgmt: −$234
• Net cashflow: $581/mo
• Annual: $6,977/yr
• Cap rate: 20.68%
• Cash-on-cash: 51.38%
• DSCR: 3.29
• 1% rule: 2.29%
• Cash to close: $13,580

Investor read

• This is a 4-bed/1.0-bath single-family listed at $48k.
• At list price, monthly cash flow is $581 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $48k).
• It's been on market 224 days — a 12% lower offer ($43k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $43k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $335 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#225 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: employment D+, amenities F, commute F.
• Chillicothe R-II (town): math 49% / reading 48% proficiency, ranked #60 of 324 in MO (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Chillicothe Elem (327 students, 52% FRL); Chillicothe Middle (math 31% / reading 35%, grade F, #265 of 391 statewide, top 69%, 371 students, 48% FRL); Chillicothe High (math 62% / reading 62%, grade B-, #28 of 521 statewide, top 6%, 609 students, 37% FRL) — zoned schools at 46% FRL track the district average.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 71 active listings in the ZIP; 47 units permitted in Livingston County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 2y ago; this cycle's ask has dropped $10k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 20.7% vs local median 4.8% in Chillicothe — 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

• It's been on market 224 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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.
• 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.