312 Ellen St

Sanborn, IA 51248

$78,000B+

2 bd · 1.0 ba · 1,024 sqft · Built 1910 · SingleFamily · Under Contract · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $903/mo
• Mortgage (P&I): −$409
• Tax + insurance: −$108
• HOA: −$0
• Vac / Maint / Mgmt: −$190
• Net cashflow: $197/mo
• Annual: $2,359/yr
• Cap rate: 9.32%
• Cash-on-cash: 10.80%
• DSCR: 1.48
• 1% rule: 1.16%
• Cash to close: $21,840

Investor read

• This is a 2-bed/1.0-bath single-family listed at $78k.
• At list price, monthly cash flow is $197 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($903 rent vs $78k).
• It's been on market 31 days — a 3% lower offer ($76k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $76k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($539 loan paydown + $4k appreciation (4.5% local appreciation)).
• Location reads 76/100 on livability (#184 in IA, #3,267 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Hartley-Melvin-Sanborn Community School District (rural): math 72% / reading 73% proficiency, ranked #111 of 289 in IA (top 38%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Hartley-Melvin-Sanborn Elementary School (math 74% / reading 74%, grade A, #131 of 616 statewide, top 27%, 270 students, 52% FRL); Hartley-Melvin-Sanborn Middle School (math 72% / reading 72%, grade A, #95 of 246 statewide, top 42%, 174 students, 51% FRL); Hartley-Melvin-Sanborn High School (math 72% / reading 77%, grade B+, #89 of 336 statewide, top 30%, 203 students, 47% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 13 units permitted in O'Brien County in 2024 (0 in 5+ unit buildings).
• O'Brien County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $55k; 42% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (4.5% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1910 — 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 A-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.