133 N Main St

Protivin, IA 52163

$125,000D

2 bd · 1.0 ba · 938 sqft · Built 1960 · SingleFamily · Under Contract · 35 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $877/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$124
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $-86/mo
• Annual: $-1,036/yr
• Cap rate: 5.46%
• Cash-on-cash: -2.96%
• DSCR: 0.87
• 1% rule: 0.70%
• Cash to close: $35,000

Investor read

• This is a 2-bed/1.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $-86 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $110k (12.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $88k (29.8% below list).
• It's been on market 35 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (29.8% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($864 loan paydown + $3k appreciation (2.0% local appreciation)).
• Location reads 62/100 on livability (#736 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Turkey Valley Community School District (rural): math 71% / reading 78% proficiency, ranked #82 of 289 in IA (top 28%) — strong family-tenant draw, lease renewals of 3-5y typical; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Turkey Valley Elementary School (math 92% / reading 82%, grade A+, #16 of 616 statewide, top 3%, 192 students, 36% FRL); Turkey Valley Jr-Sr High School (math 62% / reading 77%, grade B, #152 of 336 statewide, top 52%, 183 students, 38% FRL) — zoned schools average 37% FRL vs 16% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 2 active listings in the ZIP; 8 units permitted in Howard County in 2024 (0 in 5+ unit buildings).
• Howard County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $20k; list at $125k implies a 525% gain — meaningful room to come down on a strong offer.
• By year 10, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 35 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.