903 Hills Ave

Churdan, IA 50050

$40,000A-

3 bd · 1.0 ba · 1,049 sqft · Built 1900 · Other · Active · 105 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,024/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$104
• HOA: −$0
• Vac / Maint / Mgmt: −$215
• Net cashflow: $495/mo
• Annual: $5,939/yr
• Cap rate: 21.14%
• Cash-on-cash: 53.02%
• DSCR: 3.36
• 1% rule: 2.56%
• Cash to close: $11,200

Investor read

• This is a 3-bed/1.0-bath other listed at $40k.
• At list price, monthly cash flow is $495 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 105 days — a 9% lower offer ($36k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $36k (9.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($277 loan paydown + $2k appreciation (5.9% local appreciation)).
• Location reads 65/100 on livability (#564 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Paton-Churdan Community School District (rural): math 80% / reading 70% proficiency, ranked #111 of 330 in IA (top 34%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Paton-Churdan Elementary (math 82% / reading 67%, grade A, #131 of 616 statewide, top 27%, 89 students, 40% FRL); Paton-Churdan Jr-Sr High School (math 62% / reading 67%, grade B-, #211 of 336 statewide, top 70%, 99 students, 35% FRL) — zoned schools at 38% FRL track the district average.
• Watch-outs: property tax is 2.6% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 15 units permitted in Greene County in 2024 (0 in 5+ unit buildings).
• Greene County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $8k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $33k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 105 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.