311 E Prospect St · Red Oak, IA 51566

$39,900

2 bd · 1.0 ba · 1,344 sqft · SingleFamily public records · 63 Days on market

Built 1900 3,485 sqft lot $30/sqft · 59% below area Est $64k · 38% under

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Why this score? — see what drove the B+ 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 +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Schools +4.9/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Here is an economical house with 2 bedroom house where one of the bedrooms has been converted into a laundry room. The house has a very large Dining / Living room area and this property is being sold "AS IS" . Make your appointment to view this property today!

Key facts

• Laundry room
• 3,485 sq ft lot
• Built 1900

Tags

• LAUNDRY ROOM
• LARGE DINING LIVING ROOM

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $364 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($795 rent vs $40k).
• Recommended offer: $38k (6.0% below list) — sets the bar for market timing.
• Cap rate 17.3% vs local median 3.6% in Red Oak — 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 68/100 on livability (#428 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D+, amenities F, commute F.
• Red Oak Community School District (town): math 58% / reading 59% proficiency, ranked #255 of 289 in IA (top 88%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 56 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 13 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $276 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Montgomery County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 63 days — a 6% lower offer ($38k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $37,506 (6.0% below list)

Questions for the listing agent

1. It's been on market 63 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
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: 1.99% ✓
• Cap rate: 17.25%
• Cash-on-cash: 39.14%
• DSCR: 2.74
• GRM: 4.2

CMA / ARV

• ARV (median comp): $64,383
• List price: $39,900
• Delta: -38.03%
• 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
706 E Prospect St	0.24mi	2/1.5	1,301 (-3%)	7mo	$155,000	$119	76
1005 N 2nd St	0.13mi	3/2.0 (+1)	1,294 (-4%)	4mo	$55,000	$43	75
904 N 6th St	0.18mi	3/3.0 (+1)	1,396 (+4%)	3mo	$188,250	$135	70
709 Maple St	0.27mi	3/2.0 (+1)	1,468 (+9%)	3mo	$105,000	$72	60
1600 N 1st St	0.36mi	3/2.0 (+1)	1,392 (+4%)	9mo	$145,000	$104	60
301 E Walnut St	0.32mi	3/2.0 (+1)	1,405 (+4%)	10mo	$140,000	$100	60
100 W Valley St	0.21mi	2/1.0	1,164 (-13%)	9mo	$50,000	$43	60
900 Boundary St	0.41mi	2/2.0	1,270 (-6%)	9mo	$58,000	$46	60
1211 N 6th St	0.16mi	1/2.0 (-1)	1,511 (+12%)	7mo	$140,000	$93	57
207 W Coolbaugh St	0.44mi	2/2.0	1,190 (-12%)	1mo	$78,000	$66	56
608 Sunset Ave	0.55mi	3/1.0 (+1)	1,216 (-10%)	0mo	$155,000	$127	53
1109 E Reed St	0.61mi	3/2.0 (+1)	1,380 (+3%)	14mo	$110,000	$80	47

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 · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 35.4%
• Equity multiple: 2.50×
• Total profit: $16,745
• Equity at exit: $5,949

10-year hold

• IRR: 42.1%
• Equity multiple: 4.98×
• Total profit: $44,481
• Equity at exit: $3,450

Cash invested: $11,172 (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 51566

• Home prices YoY: -33.3%
• Active inventory: 56
• Price-to-rent: 4.2×

Monthly cashflow live

• Estimated rent: $795 medium
• Mortgage (P&I): −$209
• Tax from tax record: −$38 /mo · $454/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$167
• Net cashflow: $364

Break-even live

Break-even rent $334

Max offer price $39,900

Occupancy floor 49%

Sensitivity live

Price	-10% $387	-5% $376	+0% $364	+5% $353	+10% $342
Rent	-10% $302	-5% $333	+0% $364	+5% $396	+10% $427
Rate	-1.0pp $384	-0.5pp $374	base $364	+0.5pp $354	+1.0pp $343

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: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2400 N 8th St Red Oak, IA	1.0–3.0	1.0–2.0	792	$795	$1.00	14d	11	0.95mi

Listing history 17 events

1. 2026-06-21
   days on market $39,900 Active 63 DOM
2. 2026-06-18
   days on market $39,900 Active 61 DOM
3. 2026-06-17
   days on market $39,900 Active 60 DOM
4. 2026-06-16
   days on market $39,900 Active 59 DOM
5. 2026-06-15
   days on market $39,900 Active 58 DOM
6. 2026-06-13
   days on market $39,900 Active 56 DOM
7. 2026-06-12
   days on market $39,900 Active 55 DOM
8. 2026-06-09
   days on market $39,900 Active 52 DOM
9. 2026-06-08
   days on market $39,900 Active 51 DOM
10. 2026-06-07
    days on market $39,900 Active 50 DOM
11. 2026-06-05
    days on market $39,900 Active 48 DOM
12. 2026-06-04
    days on market $39,900 Active 46 DOM
13. 2026-06-02
    days on market $39,900 Active 45 DOM
14. 2026-06-01
    days on market $39,900 Active 44 DOM
15. 2026-05-31
    days on market $39,900 Active 43 DOM
16. 2026-05-31
    days on market $39,900 Active 42 DOM
17. 2026-04-16
    listed $39,900 Active 270-char remark

    Show marketing remark (270 chars)

    Here is an economical house with 2 bedroom house where one of the bedrooms has been converted into a laundry room. The house has a very large Dining / Living room area and this property is being sold "AS IS" . Make your appointment to view this property today!

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

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $454 · $38/mo
• Projected year-2 tax: $540 · $45/mo
• Expected delta: +$86/yr (+$7/mo · 19.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥106°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: $9,540
• − Mortgage interest: −$2,235
• − Property taxes: −$454
• − Insurance: −$200
• − Repairs & maintenance: −$763
• − Management: −$763
• − Depreciation: −$1,161
• Taxable income: $3,964
• Est. tax owed @ 24.0%: −$951
• After-tax cash flow: $3,421/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: Red Oak Community School District
• NCES district ID: 1924000
• Math proficiency: 58% ▼ -6.00%
• Reading proficiency: 59% ▲ 2.00%
• Median HH income: $38,902
• Composite: 48.77/100
• National rank: #2092
• State rank: #255 of 289 in IA

Livability — Red Oak

• Score: 68/100
• State rank: #428
• US rank: #9239

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Red Oak, IA
• City population: 7,004
• Population (ZIP): 7,004

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 9,518 people
• By 2030: 9,116 · -4.2%
• By 2040: 8,303 · -12.8%
• By 2050: 7,595 · -20.2%
• By 2075: 6,568 · -31.0%
• By 2100: 5,800 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 4% Hispanic / Latino 1% Asian 1%
• Common ancestry: Serbian 2% Romanian 1% Iranian 1%
• Foreign-born: 2% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Montgomery

• 2024 margin: Solid R (+39.1) · D 29.8% · R 68.9% · Other 1.3%
• 2008→2024 swing: -28.5pp toward R · 2008: -10.6pp · 2024: -39.1pp
• All cycles: 2024: R+39.1 2020: R+39.0 2016: R+42.4 2012: R+21.6 2008: R+10.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -93.42%
• Current HPI: 187.1643
• Rent YoY: —
• Metro: —
• 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

1 event — show timeline

• 2026-04-16 Listed $39,900 IAR

Property tax history

+1.1%/yr

Latest (2025): $454 · +4.1% YoY. Source: county tax records.