124 2nd Ave

Titonka, IA 50480

$84,000B+

2 bd · 1.5 ba · 2,104 sqft · Built 1940 · SingleFamily · Pending · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,066/mo
• Mortgage (P&I): −$441
• Tax + insurance: −$171
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $230/mo
• Annual: $2,764/yr
• Cap rate: 9.58%
• Cash-on-cash: 11.75%
• DSCR: 1.52
• 1% rule: 1.27%
• Cash to close: $23,520

Investor read

• This is a 2-bed/1.5-bath single-family listed at $84k.
• At list price, monthly cash flow is $230 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $84k).
• It's been on market 88 days — a 6% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (6.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($581 loan paydown + $6k appreciation (6.8% local appreciation)).
• Location reads 64/100 on livability (#597 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Algona Community School District (town): math 65% / reading 70% proficiency, ranked #170 of 289 in IA (top 59%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bertha Godfrey Elementary School (272 students, 29% FRL); Algona Middle School (math 64% / reading 71%, grade A-, #133 of 246 statewide, top 56%, 440 students, 41% FRL); Algona High School (math 59% / reading 63%, grade C+, #258 of 336 statewide, top 78%, 463 students, 31% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 15 units permitted in Kossuth County in 2024 (0 in 5+ unit buildings).
• Kossuth County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (6.8% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 88 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-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.