505 S 3rd Ave E · Newton, IA 50208

$171,000

4 bd · 2.5 ba · 2,212 sqft · SingleFamily public records · 36 Days on market

Built 1900 0.30 ac lot $77/sqft · 19% below area Est $212k · 19% under

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +14.2/30.0
• Schools +5.1/10.0
• 1% rule +4.3/10.0
• DSCR +4.3/10.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Welcome home to this charming 1.5-story home offering over 2,212 sq. ft. of living space and plenty of room to spread out. The main floor features a spacious family room, formal dining room, large kitchen, master bedroom with a half bath, full bathroom, and a versatile bonus room with laundry hookups. Upstairs, you'll find three generously sized bedrooms and an additional full bathroom. Outside, the detached 2-car garage and corner lot provide extra space and convenience. Located close to shopping, dining, parks, and all the amenities Newton has to offer, this home is ready for its next owners to make it their own.

Key facts

• 0.3 acre lot
• 2 garage spots
• Built 1900

Property features AI

Exterior

• Parking: Detached 2-car garage
• Utilities: Public water; Public sewer
• Home design: 2-story house; Residential zoning
• Construction: Vinyl siding; Asphalt shingle roof; Brick/mortar foundation
• Exterior features: Open patio

Interior

• Kitchen: Dishwasher; Microwave; Stove
• Bedrooms: 2 main-level bedrooms
• Flooring: Carpet; Hardwood; Vinyl
• Bathrooms: 2 full bathrooms; 1 half bathroom
• Heating & cooling: Forced air heating (natural gas); Central air conditioning
• Interior features: Dining area; Partial unfinished basement
• Laundry & utility: Main-level laundry

What this means for you Summary

Snapshot

• This is a 4-bed/2.5-bath single-family listed at $171k.

Deal economics

• At list price, monthly cash flow is $28 ($342/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $159k (7.3% below list).
• Recommended offer: $159k (7.3% below list) — sets the bar for 1% rule.
• Cap rate 6.5% vs local median 3.1% in Newton — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 77/100 on livability (#169 in IA, #3,069 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, employment D+, amenities F.
• Newton Community School District (town): math 59% / reading 62% proficiency, ranked #245 of 289 in IA (top 85%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 242 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 16 units permitted in Jasper County in 2024 (0 in 5+ unit buildings).
• This rent runs 31% of the median local income ($62k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Jasper County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 36 days — a 3% lower offer ($166k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 4y ago; this cycle's ask has dropped $19k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $158,520 (7.3% below list)

Questions for the listing agent

1. It's been on market 36 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
2. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 0.93% ✗
• Cap rate: 6.49%
• Cash-on-cash: 0.71%
• DSCR: 1.03
• GRM: 9.0

CMA / ARV

• ARV (median comp): $211,525
• List price: $171,000
• Delta: -19.16%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
420 S 3rd Ave E	0.05mi	3/2.5 (-1)	2,225 (+1%)	12mo	$282,500	$127	82
618 N 6th Ave E	0.49mi	4/1.5	2,229 (+1%)	14mo	$166,000	$74	60
314 E 3rd St N	0.35mi	4/2.0	1,932 (-13%)	3mo	$189,000	$98	58
323 W 2nd St S	0.37mi	3/2.5 (-1)	2,152 (-3%)	24mo	$228,500	$106	53
600 S 3rd Ave W	0.64mi	4/3.0	2,044 (-8%)	11mo	$187,000	$91	46
320 S 3rd Ave W	0.47mi	4/1.5	1,920 (-13%)	15mo	$149,000	$78	39
522 1st Ave W	0.66mi	5/2.0 (+1)	2,463 (+11%)	17mo	$262,000	$106	29

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -15.1%
• Equity multiple: 0.46×
• Total profit: $-25,846
• Equity at exit: $25,497

10-year hold

• IRR: -6.5%
• Equity multiple: 0.58×
• Total profit: $-19,968
• Equity at exit: $14,785

Cash invested: $47,880 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50208

• Home prices YoY: -14.4%
• Active inventory: 242
• Price-to-rent: 9.0×

Monthly cashflow live

• Estimated rent: $1,585 medium
• Mortgage (P&I): −$897
• Tax from tax record: −$256 /mo · $3,070/yr
• Insurance: −$71
• HOA: −$0
• Vacancy / Maint / Mgmt: −$333
• Net cashflow: $28

Break-even live

Break-even rent $1,549

Max offer price $171,000

Occupancy floor 93%

Sensitivity live

Price	-10% $125	-5% $77	+0% $28	+5% $-20	+10% $-68
Rent	-10% $-97	-5% $-34	+0% $28	+5% $91	+10% $154
Rate	-1.0pp $115	-0.5pp $72	base $28	+0.5pp $-16	+1.0pp $-61

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $42,750
• Closing costs: $5,130
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
527 1st Ave W Newton, IA	4.0	2.0	2136	$1,850	$0.87	44d	1	0.66mi
812 N 3rd Ave W Newton, IA	4.0	1.0	1450	$1,450	$1.00	15d	1	0.88mi
712 W 12th St S Newton, IA	3.0	2.5	2087	$1,700	$0.81	24d	1	1.03mi

Listing history 22 events

1. 2026-06-18
   days on market $171,000 Active 36 DOM
2. 2026-06-17
   price $171,000 Active 35 DOM
3. 2026-06-17
   days on market $190,000 Active 35 DOM
4. 2026-06-16
   days on market $190,000 Active 34 DOM
5. 2026-06-15
   days on market $190,000 Active 33 DOM
6. 2026-06-14
   days on market $190,000 Active 31 DOM
7. 2026-06-13
   days on market $190,000 Active 30 DOM
8. 2026-06-10
   days on market $190,000 Active 28 DOM
9. 2026-06-09
   days on market $190,000 Active 27 DOM
10. 2026-06-08
    days on market $190,000 Active 26 DOM
11. 2026-06-07
    days on market $190,000 Active 25 DOM
12. 2026-06-05
    days on market $190,000 Active 22 DOM
13. 2026-06-03
    days on market $190,000 Active 21 DOM
14. 2026-06-02
    days on market $190,000 Active 20 DOM
15. 2026-06-01
    days on market $190,000 Active 19 DOM
16. 2026-05-31
    days on market $190,000 Active 18 DOM
17. 2026-05-31
    days on market $190,000 Active 17 DOM
18. 2026-05-12
    listed $190,000 Active 622-char remark
19. 2022-06-03
    soldstatus $182,000 Closed
20. 2022-04-25
    status Pending
21. 2022-04-14
    listed $182,500 Active
22. 2017-07-20
    soldstatus $106,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $3,070 · $256/mo
• Projected year-2 tax: $3,070 · $256/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥104°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,022
• − Mortgage interest: −$9,579
• − Property taxes: −$3,070
• − Insurance: −$855
• − Repairs & maintenance: −$1,522
• − Management: −$1,522
• − Depreciation: −$4,975
• Taxable loss: −$2,499
• Est. tax savings @ 24.0%: +$600
• After-tax cash flow: $942/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Newton Community School District
• NCES district ID: 1920610
• Math proficiency: 59% ▼ -13.00%
• Reading proficiency: 62% ▼ -9.00%
• Median HH income: $46,447
• Composite: 51.15/100
• National rank: #1762
• State rank: #245 of 289 in IA

Livability — Newton

• Score: 77/100
• State rank: #169
• US rank: #3069

Category grades

Amenities F Commute F Cost of living A+ Crime C- Employment D+ Housing A+ Health & safety A+ User ratings B+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Newton, IA
• County: Jasper County · 20,595 people
• City population: 20,595
• Metro: Des Moines-West Des Moines, IA
• Population (ZIP): 20,595
• Household income: $62,306
• Rent vs Own: 34.5% rent · 65.5% own
• Severe rent burden: 536.0

Population outlook (Jasper County) Hauer SSP2

• Today (2025): 36,216 people
• By 2030: 35,730 · -1.3%
• By 2040: 34,727 · -4.1%
• By 2050: 33,802 · -6.7%
• By 2075: 33,382 · -7.8%
• By 2100: 32,761 · -9.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 5% Two or more races 4% Black 3%
• Common ancestry: Iranian 8% Portuguese 3% Lithuanian 2%
• Foreign-born: 4% · Canada
• Languages at home: 92% English-only · Spanish 4% Arabic 2% Chinese 1%

Political lean MEDSL · Jasper

• 2024 margin: Strong R (+27.6) · D 35.4% · R 63.0% · Other 1.5%
• 2008→2024 swing: -35.1pp toward R · 2008: 7.5pp · 2024: -27.6pp
• All cycles: 2024: R+27.6 2020: R+21.5 2016: R+18.4 2012: D+7.1 2008: D+7.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -45.48%
• Current HPI: 269.6454
• Rent YoY: —
• Metro: Des Moines-West Des Moines, IA
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+61.3% since first listed

6 events — show timeline

• 2026-06-17 Price Changed $171,000 DMMLS
• 2026-05-12 Listed $190,000 DMMLS
• 2022-06-03 Sold (MLS) $182,000 DMMLS
• 2022-04-25 Pending — DMMLS
• 2022-04-14 Listed $182,500 DMMLS
• 2017-07-20 Sold (Public Records) $106,000 Public Records

Property tax history

+3.9%/yr

Latest (2025): $3,070 · +0.7% YoY. Source: county tax records.