1846 County Highway 524

Malden, MO 63870

$124,900D+

3 bd · 2.0 ba · 1,344 sqft · Built 1970 · Other · Active · 136 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,084/mo
• Mortgage (P&I): −$655
• Tax + insurance: −$250
• HOA: −$0
• Vac / Maint / Mgmt: −$228
• Net cashflow: $-49/mo
• Annual: $-587/yr
• Cap rate: 7.00%
• Cash-on-cash: 2.52%
• DSCR: 1.11
• 1% rule: 0.87%
• Cash to close: $34,972

Investor read

• This is a 3-bed/2.0-bath other listed at $125k.
• At list price, monthly cash flow is $-49 ($-587/yr) — negative.
• To cash-flow at today's rent, offer at most $116k (6.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (13.2% below list).
• It's been on market 136 days — a 12% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (13.2% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($864 loan paydown + $249 appreciation (0.2% local appreciation)).
• Location reads 59/100 on livability (#572 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.
• Risco R-II (rural): math 40% / reading 40% proficiency, ranked #308 of 535 in MO (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Risco Elem. (math 34% / reading 34%, grade F, #676 of 1,115 statewide, top 66%, 85 students, 53% FRL); Risco High (math 32% / reading 32%, grade F, #356 of 521 statewide, top 71%, 86 students, 46% FRL) — zoned schools at 50% FRL track the district average.
• Watch-outs: flood insurance adds $122/mo.
• Market conditions: 3 active listings in the ZIP; 11 units permitted in New Madrid County in 2024 (0 in 5+ unit buildings).
• New Madrid County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 7 sale attempts since 7y ago; this cycle's ask has dropped $15k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 136 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• 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?
• 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?