1275 Holiday Ln

Holiday Lake, IA 52211

$275,000D

3 bd · 1.5 ba · 1,332 sqft · Built 1967 · SingleFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,199/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$325
• HOA: −$55
• Vac / Maint / Mgmt: −$252
• Net cashflow: $-875/mo
• Annual: $-10,497/yr
• Cap rate: 2.48%
• Cash-on-cash: -13.63%
• DSCR: 0.39
• 1% rule: 0.44%
• Cash to close: $77,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $275k.
• At list price, monthly cash flow is $-875 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $120k (56.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (56.4% below list).
• It's been on market 93 days — a 9% lower offer ($250k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $120k (56.4% below list) — sets the bar for 1% rule.
• In year one you build about $25k of equity ($2k loan paydown + $24k appreciation (8.6% local appreciation)).
• Location reads 66/100 on livability (#524 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Brooklyn-Guernsey-Malcom Community School District (rural): math 72% / reading 74% proficiency, ranked #101 of 289 in IA (top 35%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Brooklyn-Guernsey-Malcom Elementary School (math 82% / reading 82%, grade A+, #44 of 616 statewide, top 9%, 296 students, 34% FRL); Brooklyn-Guernsey-Malcom Jr-Sr High School (math 64% / reading 68%, grade B, #200 of 336 statewide, top 60%, 265 students, 35% FRL).
• Market conditions: 58 active listings in the ZIP; 27 units permitted in Poweshiek County in 2024 (0 in 5+ unit buildings).
• Poweshiek County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $80k; list at $275k implies a 244% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 2.5% vs local median 1.8% in Holiday Lake — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 93 days. Have you received any prior offers? Is the seller open to a 56% concession, seller financing, or rate buy-down credit?
• Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?