2506 E 40th Ct · Des Moines, IA 50317

$140,000

3 bd · 1.0 ba · 1,170 sqft · SingleFamily public records · 14 Days on market

Built 1917 0.29 ac lot $120/sqft · 32% below area Est $205k · 32% under

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +18.3/30.0
• ARV discount +15.0/15.0
• DSCR +5.7/10.0
• 1% rule +4.9/10.0
• Livability +4.0/5.0
• Schools +3.8/10.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Huge bungalow, great neighborhood, 3 bedroom and 1 bath up and a large kitchen with tons of counter space and cabinets. Very large living room and a kitchen downstairs, too. Property includes vacant lot next door.

Key facts

• Double lot
• Full basement
• Oversized bathroom

Tags

• DOUBLE LOT
• OVERSIZED BATHROOM
• FULL BASEMENT
• ENCLOSED FRONT PORCH
• OVERSIZED PARKING SLAB
• EXTRA EXTERIOR STORAGE

Property features AI

Exterior

• Utilities: Public water; Public sewer
• Home design: Single-story; Residential zoning; Concrete road access
• Construction: Poured foundation; Asphalt shingle roof; Built with standard residential construction
• Exterior features: Enclosed porch; Screened porch; Exterior storage

Interior

• Bedrooms: 2 main-level bedrooms
• Flooring: Hardwood
• Bathrooms: 1 full bathroom
• Heating & cooling: Forced air heating (gas)
• Interior features: Window treatments; Partially finished basement; Hardwood flooring

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $140k.

Deal economics

• At list price, monthly cash flow is $128 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (0.9% below list).
• Recommended offer: $139k (0.9% below list) — sets the bar for 1% rule.
• Cap rate 7.4% vs local median 3.1% in 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.

Location & tenants

• Location reads 81/100 on livability (#63 in IA, #1,432 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, schools D+, crime F.
• Des Moines Independent Community School District (urban): math 43% / reading 46% proficiency, ranked #289 of 289 in IA (top 100%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising (+2.3%/yr); 357 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $968 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 19y 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.

Risks & watch-outs

• Watch-outs: built in 1917 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $138,690 (0.9% below list)

Questions for the listing agent

1. Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 0.99% ✗
• Cap rate: 7.39%
• Cash-on-cash: 3.92%
• DSCR: 1.17
• GRM: 8.4

CMA / ARV

• ARV (median comp): $204,636
• List price: $140,000
• Delta: -31.59%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2506 E 40th Ct	0.00mi	2/1.0 (-1)	1,170 (0%)	1mo	$143,000	$122	94
2325 E 41st St	0.16mi	3/1.5	1,116 (-5%)	0mo	$205,000	$184	83
2424 E 40th St	0.06mi	3/2.0	1,232 (+5%)	3mo	$180,000	$146	82
2614 E 38th Ct	0.24mi	3/1.5	1,254 (+7%)	2mo	$215,000	$171	73
2215 E 41st St	0.25mi	2/1.0 (-1)	1,110 (-5%)	2mo	$153,000	$138	73
2510 E 38th Ct	0.22mi	4/3.0 (+1)	1,115 (-5%)	1mo	$245,000	$220	68
2222 E 41st St	0.23mi	3/2.0	1,056 (-10%)	2mo	$210,000	$199	67
3807 Glen Ellen Dr	0.41mi	3/1.5	1,088 (-7%)	4mo	$240,000	$221	64
3001 E 37th St	0.47mi	2/1.0 (-1)	1,120 (-4%)	5mo	$194,900	$174	62
3112 E 41st St	0.42mi	3/2.0	1,282 (+10%)	0mo	$210,000	$164	60
3607 E 41st Ct	0.70mi	3/1.0	1,008 (-14%)	2mo	$248,000	$246	43
3420 Thompson Ave	0.70mi	3/2.0	1,050 (-10%)	4mo	$218,000	$208	43

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 2.29% rent growth · sell at horizon

5-year hold

• IRR: -10.9%
• Equity multiple: 0.60×
• Total profit: $-15,487
• Equity at exit: $20,874

10-year hold

• IRR: -2.7%
• Equity multiple: 0.82×
• Total profit: $-6,872
• Equity at exit: $12,105

Cash invested: $39,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50317

• Rents YoY: 2.3%
• Active inventory: 357
• Price-to-rent: 8.4×

Monthly cashflow live

• Estimated rent: $1,387 high
• Mortgage (P&I): −$734
• Tax est. 1.5%: −$175 /mo · $2,100/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$291
• Net cashflow: $128

Break-even live

Break-even rent $1,225

Max offer price $140,000

Occupancy floor 86%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $35,000
• Closing costs: $4,200
• Reserves months: —
• Total cash needed: —

Rent comps 10 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2515 E 37th St Des Moines, IA	3.0	1.0	1008	$1,290	$1.28	21d	1	0.35mi
4303 Morton Ave Des Moines, IA	3.0	2.0	1188	$1,610	$1.36	14d	1	0.44mi
4251 Grandview Ave Des Moines, IA	3.0	2.0	1188	$1,610	$1.36	14d	1	0.44mi
4148 Mattern Ave Des Moines, IA	3.0	1.0	1025	$1,395	$1.36	14d	1	0.47mi
3722 Hubbell Ave Des Moines, IA	1.0–2.0	1.0–2.0	766	$975	$1.27	14d	2	0.92mi
4014 Hubbell Ave Des Moines, IA	1.0–2.0	1.0	750	$1,200	$1.60	14d	13	1.06mi
3560 E Douglas Ave Des Moines, IA	1.0–3.0	1.0–2.0	870	$1,145	$1.32	14d	14	1.13mi
4210 Knob Hill Dr Des Moines, IA	2.0	1.0	800	$850	$1.06	43d	1	1.26mi
4200 Knob Hill Dr Unit 4200-08 Des Moines, IA	2.0	1.0	800	$850	$1.06	23d	1	1.26mi
4214 Hubbell Ave Des Moines, IA	2.0	1.0	860	$997	$1.16	14d	3	1.34mi

Listing history 5 events

1. 2026-05-07
   status Pending 682-char remark
2. 2026-04-23
   listed $140,000 Active 682-char remark
3. 2008-02-19
   soldstatus $95,000
4. 2008-02-15
   soldstatus $95,000 213-char remark

   Show marketing remark (213 chars)

   Huge bungalow, great neighborhood, 3 bedroom and 1 bath up and a large kitchen with tons of counter space and cabinets. Very large living room and a kitchen downstairs, too. Property includes vacant lot next door.

5. 2007-12-27
   listed $100,000 213-char remark

   Show marketing remark (213 chars)

   Huge bungalow, great neighborhood, 3 bedroom and 1 bath up and a large kitchen with tons of counter space and cabinets. Very large living room and a kitchen downstairs, too. Property includes vacant lot next door.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥103°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,643
• − Mortgage interest: −$7,842
• − Property taxes: −$2,100
• − Insurance: −$700
• − Repairs & maintenance: −$1,331
• − Management: −$1,331
• − Depreciation: −$4,073
• Taxable loss: −$735
• Est. tax savings @ 24.0%: +$176
• After-tax cash flow: $1,714/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Des Moines Independent Community School District
• NCES district ID: 1908970
• Math proficiency: 43% ▼ -6.00%
• Reading proficiency: 46% ▼ -1.00%
• Median HH income: $45,905
• Composite: 37.83/100
• National rank: #4331
• State rank: #289 of 289 in IA

Livability — Des Moines

• Score: 81/100
• State rank: #63
• US rank: #1432

Category grades

Amenities B Commute A+ Cost of living A+ Crime F Employment C- Housing A+ Health & safety A+ User ratings A-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Des Moines, IA
• County: Polk County · 453,298 people
• City population: 203,612
• Metro: Des Moines-West Des Moines, IA
• Population (ZIP): 36,548
• Household income: $65,617
• Rent vs Own: 27.5% rent · 72.5% own
• Severe rent burden: 716.0

Population outlook (Polk County) Hauer SSP2

• Today (2025): 548,042 people
• By 2030: 588,557 · +7.4%
• By 2040: 670,629 · +22.4%
• By 2050: 752,830 · +37.4%
• By 2075: 955,069 · +74.3%
• By 2100: 1,115,436 · +103.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority White (65%)
• Race & ethnicity: White 65% Hispanic / Latino 19% Two or more races 10% Black 10% Asian 3%
• Hispanic origin (detail): Mexican 15% Puerto Rican 1%
• Common ancestry: Portuguese 3% Iranian 2% Swiss 1%
• Foreign-born: 12% · Canada
• Languages at home: 80% English-only · Spanish 13% Other Asian/Pacific 2%

Political lean MEDSL · Polk

• 2024 margin: D (+10.9) · D 54.8% · R 43.9% · Other 1.3%
• 2008→2024 swing: -3.7pp toward R · 2008: 14.6pp · 2024: 10.9pp
• All cycles: 2024: D+10.9 2020: D+15.2 2016: D+11.5 2012: D+14.2 2008: D+14.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -235.00%
• Current HPI: 281.7409
• Rent YoY: ▲ 2.29%
• Metro: Des Moines-West Des Moines, IA
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+43.0% since first listed

6 events — show timeline

• 2026-05-29 Sold (MLS) $143,000 DMMLS
• 2026-05-07 Pending — DMMLS
• 2026-04-23 Listed $140,000 DMMLS
• 2008-02-19 Sold (Public Records) $95,000 Public Records
• 2008-02-15 Sold (MLS) $95,000 DMMLS
• 2007-12-27 Listed $100,000 DMMLS

Property tax history

-45.8%/yr

Latest (2020): $30 · -40.0% YoY. Source: county tax records.