524 SE 1st St

Eagle Grove, IA 50533

$118,000C-

4 bd · 1.5 ba · 1,574 sqft · Built 1930 · SingleFamily · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,159/mo
• Mortgage (P&I): −$619
• Tax + insurance: −$172
• HOA: −$0
• Vac / Maint / Mgmt: −$243
• Net cashflow: $125/mo
• Annual: $1,501/yr
• Cap rate: 7.56%
• Cash-on-cash: 4.54%
• DSCR: 1.20
• 1% rule: 0.98%
• Cash to close: $33,040

Investor read

• This is a 4-bed/1.5-bath single-family listed at $118k.
• At list price, monthly cash flow is $125 ($2k/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 $116k (1.8% below list).
• It's been on market 52 days — a 3% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $816 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#144 in IA, #2,591 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Eagle Grove Community School District (rural): math 50% / reading 56% proficiency, ranked #274 of 289 in IA (top 95%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Eagle Grove Elementary (math 57% / reading 37%, grade D-, #530 of 616 statewide, top 88%, 430 students, 64% FRL); Robert Blue School (math 51% / reading 59%, grade B-, #201 of 246 statewide, top 82%, 271 students, 67% FRL); Eagle Grove High School (math 42% / reading 62%, grade D+, #299 of 336 statewide, top 91%, 299 students, 62% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 38 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 23 units permitted in Wright County in 2024 (10 in 5+ unit buildings).
• Wright County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Questions for listing agent

• It's been on market 52 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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.
• 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.