22107 Spruce St

Bernard, IA 52303

$125,000D-

2 bd · 1.0 ba · 560 sqft · Built 1971 · SingleFamily · Pending · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,041/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$208
• HOA: −$49
• Vac / Maint / Mgmt: −$219
• Net cashflow: $-90/mo
• Annual: $-1,081/yr
• Cap rate: 5.43%
• Cash-on-cash: -3.09%
• DSCR: 0.86
• 1% rule: 0.83%
• Cash to close: $35,000

Investor read

• This is a 2-bed/1.0-bath single-family listed at $125k. Condition is rated good.
• At list price, monthly cash flow is $-90 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $112k (10.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $104k (16.7% below list).
• It's been on market 20 days — a 2% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $104k (16.7% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($864 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 67/100 on livability (#489 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Western Dubuque Community School District (rural): math 81% / reading 81% proficiency, ranked #22 of 289 in IA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Cascade Elementary School (math 92% / reading 82%, grade A+, #16 of 616 statewide, top 3%, 282 students, 28% FRL); Drexler Middle School (math 76% / reading 81%, grade A+, #44 of 246 statewide, top 19%, 655 students, 27% FRL); Western Dubuque High School (math 79% / reading 84%, grade A, #24 of 336 statewide, top 8%, 920 students, 22% FRL) — zoned schools at 26% FRL track the district average.
• Market conditions: 9 active listings in the ZIP; 20 units permitted in Jackson County in 2024 (0 in 5+ unit buildings).
• Jackson County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 8, paydown + projected appreciation supports a ~$34k 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?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen flooring — linoleum appears worn
• Minor: bathroom flooring — linoleum appears worn