406 and 408 John St · Decorah, IA 52101

$725,000

None bd · None ba · 3,072 sqft · Townhouse public records · 9 Days on market

Built 1908 0.65 ac lot

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Why this score? — see what drove the F 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 +7.5/15.0
• Schools +7.0/10.0
• Livability +4.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Cash flow +0.0/30.0
• 1% rule +0.0/10.0
• DSCR +0.0/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

These amazing apartment buildings have great opportunities! Between the two buildings you will find 9 apartment units with one being a loft rented out as an Air B & B. Each unit is metered separately and are on a month to month lease. There are two garage spots tucked under 406 John St. Additionally there are parking spaces in a parking area and a carport. The opportunities await for someone looking for a great investment. https://www. airbnb.com/rooms/24138221?previous_page_section_name=1000 & federated_search_id=a60af0b5-7b89-41d5-a698-ffbf253d4126 & guests=1 & adults=1

Key facts

• 2 garage spots
• Built 1908
• Listed 9 days

Property features AI

Finance

• Other: Approximately 3,336 above-grade finished area (listed for reference)
• Financial info: Zoned R-3

Exterior

• Parking: 2-car garage; Carport; Parking pad; About 10 open parking spaces
• Utilities: Public water; Public sewer
• Home design: Residential income property; Apartment building; Brick and vinyl siding construction
• Construction: Brick and vinyl siding; Metal roof; Asphalt roof
• Exterior features: Irregular lot; Lot dimensions approximately 207 x 130; Balcony

Interior

• Heating & cooling: Baseboard heating; Electric heating; Natural gas heating; Central air; Ceiling fan(s); No cooling (option listed)
• Interior features: Balcony
• Laundry & utility: Laundry on lower level

What this means for you Summary

Snapshot

• This is a townhouse listed at $725k.

Deal economics

• At list price, monthly cash flow is $-4k ($-46k/yr) — negative.
• To cash-flow at today's rent, offer at most $148k (79.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $130k (82.1% below list).
• Recommended offer: $130k (82.1% below list) — sets the bar for 1% rule.
• Cap rate -0.1% vs local median 3.4% in Decorah — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Location & tenants

• Location reads 85/100 on livability (#16 in IA, #499 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Decorah Community School District (town): math 80% / reading 84% proficiency, ranked #21 of 289 in IA (top 7%) — strong family-tenant draw, lease renewals of 3-5y typical; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Decorah Middle School (math 77% / reading 83%, grade A+, #32 of 246 statewide, top 13%, 461 students, 26% FRL); Decorah High School (math 85% / reading 92%, grade A, #3 of 336 statewide, top 1%, 576 students, 22% FRL).
• Market conditions: 75 active listings in the ZIP; 49 units permitted in Winneshiek County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Winneshiek County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $540k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $129,714 (82.1% below list)

Questions for the listing agent

1. 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?
2. Built in 1908 — 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. 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?
6. 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.
7. 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.
8. 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: 0.18% ✗
• Cap rate: -0.11%
• Cash-on-cash: -22.85%
• DSCR: -0.02
• GRM: 46.6

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -65.9%
• Equity multiple: -0.79×
• Total profit: $-363,730
• Equity at exit: $108,100

10-year hold

• IRR: —
• Equity multiple: -2.12×
• Total profit: $-633,966
• Equity at exit: $62,685

Cash invested: $203,000 (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 52101

• Home prices YoY: -26.7%
• Active inventory: 75
• Price-to-rent: 46.6×

Monthly cashflow live

• Estimated rent: $1,297 medium
• Mortgage (P&I): −$3,802
• Tax from tax record: −$786 /mo · $9,434/yr
• Insurance: −$302
• HOA: −$0
• Vacancy / Maint / Mgmt: −$272
• Net cashflow: $-3,865

Break-even live

Break-even rent $6,190

Max offer price $148,282

Occupancy floor —

Sensitivity live

Price	-10% $-3,455	-5% $-3,660	+0% $-3,865	+5% $-4,071	+10% $-4,276
Rent	-10% $-3,968	-5% $-3,917	+0% $-3,865	+5% $-3,814	+10% $-3,763
Rate	-1.0pp $-3,500	-0.5pp $-3,681	base $-3,865	+0.5pp $-4,053	+1.0pp $-4,244

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: $181,250
• Closing costs: $21,750
• Reserves months: —
• Total cash needed: —

Listing history 6 events

1. 2026-06-14
   statusdays on market $725,000 Pending 9 DOM
2. 2026-06-10
   days on market $725,000 Active 6 DOM
3. 2026-06-09
   days on market $725,000 Active 5 DOM
4. 2026-06-08
   days on market $725,000 Active 4 DOM
5. 2026-06-07
   remarks 667-char remark
6. 2026-06-07
   listed $725,000 Active 3 DOM

ⓘ 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: $9,434 · $786/mo
• Projected year-2 tax: $10,408 · $867/mo
• Expected delta: +$974/yr (+$81/mo · 10.3%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥100°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: $15,566
• − Mortgage interest: −$40,611
• − Property taxes: −$9,434
• − Insurance: −$3,625
• − Repairs & maintenance: −$1,245
• − Management: −$1,245
• − Depreciation: −$21,091
• Taxable loss: −$61,686
• Est. tax savings @ 24.0%: +$14,805
• After-tax cash flow: $-31,581/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: Decorah Community School District
• NCES district ID: 1908730
• Math proficiency: 80% ▼ -4.00%
• Reading proficiency: 84% ▬ 0.00%
• Median HH income: $54,304
• Composite: 69.72/100
• National rank: #294
• State rank: #21 of 289 in IA

Livability — Decorah

• Score: 85/100
• State rank: #16
• US rank: #499

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Decorah, IA
• County: Winneshiek County · 12,706 people
• City population: 12,706
• Metro: nan
• Population (ZIP): 12,706
• Household income: $73,484
• Rent vs Own: 29.5% rent · 70.5% own
• Severe rent burden: 207.0

Population outlook (Winneshiek County) Hauer SSP2

• Today (2025): 20,379 people
• By 2030: 19,937 · -2.2%
• By 2040: 18,697 · -8.3%
• By 2050: 17,392 · -14.7%
• By 2075: 14,921 · -26.8%
• By 2100: 12,836 · -37.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 2% Hispanic / Latino 2%
• Common ancestry: Portuguese 25% Iranian 1% Lithuanian 1%
• Foreign-born: 3% · Canada
• Languages at home: 96% English-only · Spanish 1% Other Asian/Pacific 1%

Political lean MEDSL · Winneshiek

• 2024 margin: Lean R (+9.3) · D 44.6% · R 53.9% · Other 1.5%
• 2008→2024 swing: -31.9pp toward R · 2008: 22.7pp · 2024: -9.3pp
• All cycles: 2024: R+9.3 2020: R+5.1 2016: R+0.8 2012: D+14.8 2008: D+22.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -69.20%
• Current HPI: 189.63
• Rent YoY: —
• Metro: nan
• 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

+20.9% since first listed

4 events — show timeline

• 2026-06-04 Listed $725,000 NEIRBR as distributed by MLS GRID
• 2022-03-01 Sold (Public Records) $540,000 Public Records
• 2022-03-01 Sold (MLS) $540,000 NEIRBR as distributed by MLS GRID
• 2022-01-12 Listed $599,900 NEIRBR as distributed by MLS GRID

Property tax history

+1.3%/yr

Latest (2025): $9,434 · +4.2% YoY. Source: county tax records.