31049 Main St

West Des Moines, IA 50038

$180,000D+

3 bd · 3.0 ba · 1,020 sqft · Built 1895 · Other · Pending · 43 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,148/mo
• Mortgage (P&I): −$944
• Tax + insurance: −$300
• HOA: −$0
• Vac / Maint / Mgmt: −$241
• Net cashflow: $-337/mo
• Annual: $-4,043/yr
• Cap rate: 4.05%
• Cash-on-cash: -8.02%
• DSCR: 0.64
• 1% rule: 0.64%
• Cash to close: $50,400

Investor read

• This is a 3-bed/3.0-bath other listed at $180k.
• At list price, monthly cash flow is $-337 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $131k (27.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $115k (36.2% below list).
• It's been on market 43 days — a 3% lower offer ($175k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $115k (36.2% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($1k loan paydown + $5k appreciation (3.0% local appreciation)).
• Location reads 87/100 on livability (#11 in IA, #336 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Van Meter Community School District (rural): math 85% / reading 90% proficiency, ranked #1 of 289 in IA (top 0%) — strong family-tenant draw, lease renewals of 3-5y typical; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: Van Meter Elementary School (math 88% / reading 85%, grade A+, #23 of 616 statewide, top 4%, 571 students, 6% FRL); Van Meter Middle School (math 81% / reading 92%, grade A+, #7 of 246 statewide, top 2%, 227 students, 5% FRL); Van Meter High School (math 87% / reading 92%, grade A+, #2 of 336 statewide, top 0%, 292 students, 8% FRL) — zoned schools at 6% FRL track the district average.
• Watch-outs: built in 1895 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 1,503 units permitted in Dallas County in 2024 (630 in 5+ unit buildings).
• Dallas County population projected at +74% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $15k; list at $180k implies a 1100% gain — meaningful room to come down on a strong offer.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.0% vs local median 2.5% in West Des Moines — 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 43 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1895 — 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 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?
• 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.