214 E Shaw St

Osceola, IA 50213

$229,000F

4 bd · 2.0 ba · 1,794 sqft · Built 2005 · MultiFamily · Pending · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,534/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$456
• HOA: −$0
• Vac / Maint / Mgmt: −$322
• Net cashflow: $-445/mo
• Annual: $-5,339/yr
• Cap rate: 3.96%
• Cash-on-cash: -8.33%
• DSCR: 0.63
• 1% rule: 0.67%
• Cash to close: $64,120

Investor read

• This is a 4-bed/2.0-bath multifamily listed at $229k.
• At list price, monthly cash flow is $-445 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $150k (34.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $153k (33.0% below list).
• It's been on market 22 days — a 2% lower offer ($226k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (34.3% below list) — sets the bar for cash-flow.
• In year one you build about $24k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#253 in IA, #4,874 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A-; Watch: amenities F, commute F.
• Clarke Community School District (town): math 47% / reading 58% proficiency, ranked #275 of 289 in IA (top 95%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Clarke Community Elementary School (math 48% / reading 49%, grade D, #526 of 616 statewide, top 86%, 611 students, 55% FRL); Clarke Middle School (math 44% / reading 57%, grade C, #214 of 246 statewide, top 87%, 305 students, 63% FRL); Clarke Community High School (math 49% / reading 67%, grade C, #275 of 336 statewide, top 83%, 442 students, 53% FRL).
• Market conditions: 52 active listings in the ZIP; 125 units permitted in Clarke County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 12y 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 $140k; list at $229k implies a 64% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$39k 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.