600 E Hillcrest Ave #213

Indianola, IA 50125

$89,000D

1 bd · 1.0 ba · 931 sqft · Built 2010 · Condo · Active · 127 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,601/mo
• Mortgage (P&I): −$467
• Tax + insurance: −$148
• HOA: −$1,289
• Vac / Maint / Mgmt: −$336
• Net cashflow: $-640/mo
• Annual: $-7,675/yr
• Cap rate: -2.33%
• Cash-on-cash: -30.80%
• DSCR: -0.37
• 1% rule: 1.80%
• Cash to close: $24,920

Investor read

• This is a 1-bed/1.0-bath condo listed at $89k. Condition is rated good.
• At list price, monthly cash flow is $-640 ($-8k/yr) — negative.
• Rent doesn't cover operating costs at any purchase price — skip.
• Meets the 1% rule at list price ($2k rent vs $89k).
• It's been on market 127 days — a 12% lower offer ($78k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $78k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#10 in IA, #332 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Indianola Community School District (town): math 74% / reading 72% proficiency, ranked #83 of 289 in IA (top 29%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Emerson Elementary School (math 76% / reading 65%, grade A-, #217 of 616 statewide, top 36%, 435 students, 36% FRL); Indianola Middle School (math 78% / reading 79%, grade A+, #44 of 246 statewide, top 19%, 849 students, 32% FRL); Indianola High School (math 66% / reading 70%, grade B, #184 of 336 statewide, top 55%, 1,120 students, 25% FRL).
• Watch-outs: HOA is 81% of rent.
• Market conditions: 242 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); 439 units permitted in Warren County in 2024 (0 in 5+ unit buildings).
• Warren County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate -2.3% vs local median 2.2% in Indianola — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 127 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 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?
• 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?