1309 Grape Ave

Packwood, IA 52580

$130,000D

2 bd · 1.0 ba · 1,140 sqft · Built 1920 · SingleFamily · Active · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $985/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$168
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $-71/mo
• Annual: $-855/yr
• Cap rate: 5.64%
• Cash-on-cash: -2.35%
• DSCR: 0.90
• 1% rule: 0.76%
• Cash to close: $36,400

Investor read

• This is a 2-bed/1.0-bath single-family listed at $130k.
• At list price, monthly cash flow is $-71 ($-855/yr) — negative.
• To cash-flow at today's rent, offer at most $117k (9.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $99k (24.2% below list).
• It's been on market 49 days — a 3% lower offer ($126k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $99k (24.2% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($899 loan paydown + $6k appreciation (5.0% local appreciation)).
• Location reads 62/100 on livability (#733 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B+; Watch: crime D+, health & safety D, amenities F.
• Pekin Community School District (rural): math 71% / reading 73% proficiency, ranked #121 of 289 in IA (top 42%) — strong family-tenant draw, lease renewals of 3-5y typical; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Pekin Elementary School (math 77% / reading 77%, grade A, #103 of 616 statewide, top 20%, 350 students, 32% FRL); Pekin Community Junior/ Senior High School (math 65% / reading 69%, grade B, #192 of 336 statewide, top 59%, 292 students, 29% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 14 units permitted in Jefferson County in 2024 (0 in 5+ unit buildings).
• Jefferson County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (5.0% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$32k 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?
• It's been on market 49 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.