Multi-Stream Income Property
2959 US Highway 60 N, Billings, MO 65610
This is a rare, multi-revenue-stream property on US Highway 60 in Billings, MO. One parcel produces income from three separate sources: a 3-bedroom rental house, ten RV/camper pads, and a detached 2-car garage/shop. Four pads are already producing income today. After a full house renovation and stabilization of all units, the property generates an estimated $33,986 in annual net operating income — a 15.5% cap rate on the asking price.
Why this deal stands out
- Three separate income streams diversify risk — a vacancy in one stream doesn't sink the deal.
- Four pads already paying — current income validates rental demand at this location.
- The lots have a separate, dedicated septic system.
- The house septic was replaced 2–3 years ago — a major capital item already handled.
- Highway 60 frontage gives it visibility most rural rentals don't have.
- Tenants handle yard maintenance — keeps operating costs low.
- Built-in expansion: room for additional pads on the 1.7-acre lot (subject to zoning and septic capacity).
Who this property is best suited for
A cash buyer, hard-money buyer, or investor with rehab/portfolio financing who is comfortable executing a full single-family rehab and managing small-park operations. This is not a turnkey deal and not a conventional residential transaction — it's an income-producing asset with significant value-add upside.
Property overview
Condition & rehab scope
The home requires a full renovation — roof, siding, windows, flooring, paint, kitchen, bathroom, and HVAC. Bring it down to studs in problem areas and rebuild for a long-term rental finish standard.
Estimated rehab budget: $55,000 – $75,000 (mid-point of $65,000 used in this analysis).
Site notes for the operator
- Pads share electric and water with the house — operator currently pays utilities. Stabilized expense modeling assumes utilities double to $1,200/mo with all 10 pads occupied (vs. ~$600 currently with 4 pads).
- Expansion: physical room exists for additional pads. Verify zoning, septic capacity, and any county/health-department permitting before pricing in upside.
- Garage rental ($250/mo modeled) assumes a separate tenant — storage, workshop, or small business use.
Stabilized income & operating expenses
Post-rehab, with all units leased.
| Source | Units | Per Unit/mo | Monthly |
|---|---|---|---|
| 3-bed house (rented post-rehab) | 1 | $1,000 | $1,000 |
| RV / camper pads | 10 | $350 | $3,500 |
| Detached garage / shop | 1 | $250 | $250 |
| Gross Monthly Income | $4,750 | ||
| Gross Annual Income | $57,000 | ||
| Expense | Annual | Notes |
|---|---|---|
| Property taxes | $914 | Per current bill |
| Insurance | $2,000 | Estimate; verify |
| Utilities (water + electric) | $14,400 | Shared house+pads, $1,200/mo |
| Maintenance & vacancy reserve | $5,700 | 10% of gross (combined) |
| Yard maintenance | $0 | Tenants handle |
| Property management | $0 | Self-managed (assumed) |
| Total Operating Expenses | $23,014 |
Note: 4 of 10 pads currently rent at $250–$300. The $350 stabilized rent assumes a modest market-rate adjustment after rehab and overall park cleanup. At $300/pad stabilized, gross annual income decreases by approximately $6,000. The 10% maintenance & vacancy reserve is a combined figure — for a property with this many moving parts, an operator should monitor actual maintenance spend in years 1–2 and adjust upward if needed.
Acquisition & total project cost
Modeled at the $219,900 list price across three rehab cost scenarios.
Financed buy-and-hold (mid rehab)
Conventional investor financing assumed: 20% down, 7.5% rate, 30-year amortization. Adjust based on actual lender terms.
| Down payment (20%) | $43,980 |
| Loan amount (80%) | $175,920 |
| Closing costs | $2,199 |
| Rehab budget | $65,000 |
| Holding costs | $6,000 |
| Total Cash Required | $117,179 |
| Monthly P&I (7.5%, 30-yr) | $1,230 |
| Annual debt service | $14,761 |
| NOI | $33,986 |
| Less: Annual debt service | −$14,761 |
| Annual Cash Flow After Debt | $19,225 |
| Monthly Cash Flow After Debt | $1,602 |
| Cash-on-Cash Return | 16.4% |
BRRR refinance strategy
Buy with cash or short-term financing, complete the rehab, stabilize all units, then cash-out refinance. The economics depend on the appraised value (ARV) the refinance lender accepts.
The valuation challenge
This property is a hybrid: residential SFR + small RV park + commercial-style outbuilding rental. Standard residential comps don't fit. Most lenders will use the income approach and apply a cap rate. The cap rate they pick is the single biggest driver of your cash recovery.
Below are four scenarios at common cap rate assumptions. Confirming a lender's valuation methodology before closing is strongly recommended.
| Cap Rate | Implied ARV | 80% LTV Refi | Cash Left In | Post-Refi Cash Flow |
|---|---|---|---|---|
| 9.0% | $377,622 | $302,098 | $0 (recovered) | $8,638/yr |
| 10.0% | $339,860 | $271,888 | $21,211 | $11,173/yr |
| 11.0% | $308,964 | $247,171 | $45,928 | $13,247/yr |
| 12.0% | $283,217 | $226,573 | $66,526 | $14,975/yr |
Rough rule of thumb: a successful BRRR with full capital recovery on this asset requires a sub-9% cap rate appraisal — achievable but not guaranteed. A 10–11% cap appraisal is the realistic base case, leaving $20K–$45K stuck in the deal but with operating cash flow strong enough to justify it.
Value-add upside
Levers an operator can pull post-stabilization. Not included in the base case numbers above.
Add additional pads
The 1.7-acre footprint has room for more pads beyond the existing 10. Each additional pad at $350/mo adds approximately $4,200/yr in gross income and roughly $3,780/yr in NOI. At a 10% cap, each new pad adds approximately $37,800 in property value. Verify zoning and septic capacity first.
Push lot rents
Currently 4 pads rent at $250–$300. Modeled at $350 stabilized. If the local market supports $375–$400, every $25/pad/mo adds $3,000/yr in gross income and roughly $30,000 in property value at a 10% cap.
Sub-meter the utilities
The largest expense on this property is shared utilities at $14,400/yr. Sub-metering — or charging a flat utility add-on per pad — shifts that cost to tenants and could improve NOI by $8,000–$12,000/yr. Capital cost of sub-metering varies; obtain bids before pricing this in.
Convert to long-term mobile home pads
Long-term mobile home tenancies typically rent for more than RV pads and have lower turnover. May require infrastructure changes — assess feasibility separately.
Risk factors
Underwriting
- Lot rents may stabilize below $350 — current rents are $250–$300.
- Utilities estimated at double current ($1,200/mo); actual stabilized cost may run higher with full occupancy.
- Rehab scope on a 1960 home with 'the works' needed — a 20% contingency on the budget is prudent.
- ARV is not directly comparable to standard residential comps — appraisal cap rate is the wildcard.
Operational
- RV park-style operations have higher turnover than long-term residential rentals.
- Shared utility infrastructure between house and pads adds maintenance complexity.
- Tenant base for $300–$350/mo pads requires active screening to keep park quality up.
- Code/zoning verification needed for any pad expansion plans.
Market
- Rural Missouri RV/pad demand can be cyclical and tied to local employment patterns.
- Insurance costs in rural MO can move; the $2,000/yr figure is an estimate. Obtain a real bind quote before closing.
Recommended due diligence
- Inspection of the home (structural, electrical, plumbing, HVAC) and the RV park infrastructure (electric pedestals, water lines, the dedicated pad septic system).
- Verify the four current pad tenancies — rent rolls, payment history, and any deposits held.
- Confirm with the county/health department: pad capacity on the parcel, expansion limits, and any active code issues.
- Get firm rehab bids from at least two contractors familiar with full-gut rural rehabs.
- Talk to a portfolio or commercial lender before closing about how they would appraise this property for refinance — that conversation determines whether BRRR is viable.
- Bind quote on insurance — both the dwelling and the RV park liability.
Methodology & assumptions
This analysis is illustrative and based on information provided by the seller and listing broker, plus standard underwriting conventions. Independent verification of all figures is recommended before any purchase decision.
Income
- House rent: $1,000/mo post-rehab
- RV/camper pad rent: $350/mo each, all 10 pads occupied
- Garage/shop rent: $250/mo
Expenses
- Property taxes: $914/yr (per current bill)
- Insurance: $2,000/yr (estimate; bind quote not yet obtained)
- Utilities: $1,200/mo at full occupancy ($600/mo current with 4 pads)
- Combined maintenance & vacancy reserve: 10% of gross income
- Yard maintenance: tenant responsibility
- Property management: self-managed
Project & financing
- Rehab budget: $55,000–$75,000 ($65,000 mid-point used)
- Closing costs: 1% of purchase price
- Holding period: 4 months at $1,500/mo
- Conventional financing: 20% down, 7.5% rate, 30-year amortization
- BRRR refinance: 80% LTV across multiple ARV scenarios
Limitations
This property is a hybrid asset class with limited direct comps. ARV scenarios in the BRRR analysis are based on income-approach valuation at a range of cap rates and should be confirmed with a qualified lender or appraiser. Operating projections assume successful execution of rehab and stabilization of all units.
Ready to take a closer look?
View the full MLS listing, or reach out directly to discuss the deal, schedule a walk-through, or request the seller disclosures.
Listed by Albers Real Estate Group · Springfield, MO · Brokerage License #2014042863. Analysis is illustrative; numbers based on available data and standard underwriting conventions. Independent verification of all figures and assumptions is recommended before any purchase decision. All investment carries risk; past performance is not indicative of future results. Equal Housing Opportunity.