408 1st Ave W

Swea City, IA 50590

$54,000A

3 bd · 1.5 ba · 1,466 sqft · Built 1900 · SingleFamily · Pending · 39 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,115/mo
• Mortgage (P&I): −$283
• Tax + insurance: −$61
• HOA: −$0
• Vac / Maint / Mgmt: −$234
• Net cashflow: $536/mo
• Annual: $6,434/yr
• Cap rate: 18.21%
• Cash-on-cash: 42.55%
• DSCR: 2.89
• 1% rule: 2.06%
• Cash to close: $15,120

Investor read

• This is a 3-bed/1.5-bath single-family listed at $54k.
• At list price, monthly cash flow is $536 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $54k).
• It's been on market 39 days — a 3% lower offer ($52k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $52k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($373 loan paydown + $3k appreciation (6.2% local appreciation)).
• Location reads 69/100 on livability (#403 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, amenities F, commute F.
• North Kossuth Community School District (rural): math 66% / reading 77% proficiency, ranked #138 of 289 in IA (top 48%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: North Kossuth Elementary School (math 72% / reading 72%, grade A-, #181 of 616 statewide, top 34%, 130 students, 57% FRL); North Union Middle School (math 62% / reading 82%, grade A, #95 of 246 statewide, top 42%, 128 students, 53% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 15 units permitted in Kossuth County in 2024 (0 in 5+ unit buildings).
• Kossuth County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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.
• At projected returns (6.2% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 39 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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.
• Schools are B-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?
• 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.