13132 State Road Tt

Festus, MO 63028

$125,000C

3 bd · 2.0 ba · 1,064 sqft · Built 1986 · Other · Pending · 100 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,321/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$83
• HOA: −$0
• Vac / Maint / Mgmt: −$277
• Net cashflow: $305/mo
• Annual: $3,658/yr
• Cap rate: 9.22%
• Cash-on-cash: 10.45%
• DSCR: 1.47
• 1% rule: 1.06%
• Cash to close: $35,000

Investor read

• This is a 3-bed/2.0-bath other listed at $125k.
• At list price, monthly cash flow is $305 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $125k).
• It's been on market 100 days — a 9% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#182 in MO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: amenities F, commute F, health & safety F.
• Jefferson County R-VII (rural): math 34% / reading 52% proficiency, ranked #104 of 324 in MO (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Telegraph Intermediate (math 31% / reading 43%, grade F, #611 of 1,115 statewide, top 59%, 239 students, 26% FRL); Danby-Rush Tower Middle (math 33% / reading 54%, grade D, #127 of 391 statewide, top 34%, 241 students, 25% FRL); Jefferson High School (math 47% / reading 72%, grade C+, #35 of 521 statewide, top 8%, 318 students, 20% FRL) — zoned schools at 24% FRL track the district average.
• Market conditions: 172 active listings in the ZIP; 807 units permitted in Jefferson County in 2024 (104 in 5+ unit buildings).
• 3 sale attempts since 4y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.2% vs local median 3.6% in Festus — 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 100 days. Have you received any prior offers? Is the seller open to a 9% 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 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.
• 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.