962 Upper St

Arlington, IA 50606

$54,999A

3 bd · 2.0 ba · 1,557 sqft · Built 1898 · SingleFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,182/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$93
• HOA: −$0
• Vac / Maint / Mgmt: −$248
• Net cashflow: $552/mo
• Annual: $6,630/yr
• Cap rate: 18.35%
• Cash-on-cash: 43.05%
• DSCR: 2.92
• 1% rule: 2.15%
• Cash to close: $15,400

Investor read

• This is a 3-bed/2.0-bath single-family listed at $55k.
• At list price, monthly cash flow is $552 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• It's been on market 24 days — a 2% lower offer ($54k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $54k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($380 loan paydown + $5k appreciation (8.4% local appreciation)).
• Location reads 70/100 on livability (#363 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.
• Starmont Community School District (rural): math 62% / reading 68% proficiency, ranked #202 of 289 in IA (top 70%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Starmont Elementary School (math 67% / reading 67%, grade B+, #273 of 616 statewide, top 51%, 264 students, 39% FRL); Starmont Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 129 students, 43% FRL); Starmont High School (math 62% / reading 67%, grade B-, #211 of 336 statewide, top 70%, 191 students, 56% FRL).
• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 8 units permitted in Fayette County in 2024 (0 in 5+ unit buildings).
• Fayette County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 7y ago 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.
• Current owner paid $20k; list at $55k implies a 175% gain — meaningful room to come down on a strong offer.
• At projected returns (8.4% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1898 — 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.