201 Franklin Main St

Franklin, IA 52656

$172,500C+

3 bd · 1.0 ba · 1,188 sqft · Built 1978 · SingleFamily · Under Contract · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,760/mo
• Mortgage (P&I): −$905
• Tax + insurance: −$206
• HOA: −$0
• Vac / Maint / Mgmt: −$370
• Net cashflow: $280/mo
• Annual: $3,359/yr
• Cap rate: 8.24%
• Cash-on-cash: 6.95%
• DSCR: 1.31
• 1% rule: 1.02%
• Cash to close: $48,300

Investor read

• This is a 3-bed/1.0-bath single-family listed at $172k.
• At list price, monthly cash flow is $280 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $172k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $12k of equity ($1k loan paydown + $10k appreciation (6.1% local appreciation)).
• Location reads 70/100 on livability (#365 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: employment C-, health & safety C-, amenities F.
• Central Lee Community School District (rural): math 69% / reading 75% proficiency, ranked #107 of 289 in IA (top 37%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Central Lee Elementary School (math 67% / reading 69%, grade B+, #267 of 616 statewide, top 44%, 657 students, 35% FRL); Central Lee Middle School (math 75% / reading 78%, grade A, #57 of 246 statewide, top 23%, 267 students, 45% FRL); Central Lee High School (math 64% / reading 79%, grade B+, #134 of 336 statewide, top 41%, 326 students, 35% FRL).
• Market conditions: 6 active listings in the ZIP; 15 units permitted in Lee County in 2024 (0 in 5+ unit buildings).
• Lee County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (6.1% appreciation + 3.0% rent growth), your $48k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1978 — 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?
• 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.