405 E Broadway St

What Cheer, IA 50268

$18,830C+

2 bd · 1.0 ba · 1,200 sqft · Built 1916 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,031/mo
• Mortgage (P&I): −$99
• Tax + insurance: −$53
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $663/mo
• Annual: $7,956/yr
• Cap rate: 48.55%
• Cash-on-cash: 150.91%
• DSCR: 7.71
• 1% rule: 5.48%
• Cash to close: $5,272

Investor read

• This is a 2-bed/1.0-bath single-family listed at $19k.
• At list price, monthly cash flow is $663 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $19k).
• It's been on market 23 days — a 2% lower offer ($19k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $19k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($130 loan paydown + $1k appreciation (5.6% local appreciation)).
• Location reads 58/100 on livability (#892 in IA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: crime D+, health & safety D, schools F.
• Tri-County Community School District (rural): math 60% / reading 60% proficiency, ranked #289 of 330 in IA (top 88%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: property tax is 2.9% of price; built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 1 units permitted in Keokuk County in 2024 (0 in 5+ unit buildings).
• Keokuk County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $1k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (5.6% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1916 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.