1201, 1203 S 3rd Ave

Ozark, MO 65721

$229,000C

4 bd · 2.0 ba · 1,526 sqft · Built 1970 · MultiFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,312/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$437
• HOA: −$0
• Vac / Maint / Mgmt: −$486
• Net cashflow: $188/mo
• Annual: $2,260/yr
• Cap rate: 7.57%
• Cash-on-cash: 4.56%
• DSCR: 1.20
• 1% rule: 1.01%
• Cash to close: $64,120

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $229k. Condition is rated fair.
• At list price, monthly cash flow is $188 ($2k/yr) — positive. Per door: $94/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $229k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#94 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.
• Ozark R-VI (rural): math 60% / reading 62% proficiency, ranked #10 of 324 in MO (top 3%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: East Elem. (math 70% / reading 69%, grade A-, #28 of 1,115 statewide, top 3%, 529 students, 35% FRL); Ozark Jr. High (math 54% / reading 59%, grade B, #38 of 391 statewide, top 10%, 946 students, 37% FRL); Ozark High (math 47% / reading 64%, grade C, #64 of 521 statewide, top 12%, 1,838 students, 33% FRL).
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: Rents rising fast (+5.3%/yr); 379 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 537 units permitted in Christian County in 2024 (0 in 5+ unit buildings).
• Christian County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.6% vs local median 2.8% in Ozark — 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.
• This rent runs 36% of the median local income ($78k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered appearance
• Moderate: Roof — Aged appearance