3525 Paradise Ln

Waukee, IA 50263

$384,990D-

4 bd · 2.5 ba · 2,053 sqft · Built 2026 · Other · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,377/mo
• Mortgage (P&I): −$2,019
• Tax + insurance: −$642
• HOA: −$16
• Vac / Maint / Mgmt: −$499
• Net cashflow: $-799/mo
• Annual: $-9,587/yr
• Cap rate: 3.80%
• Cash-on-cash: -8.89%
• DSCR: 0.60
• 1% rule: 0.62%
• Cash to close: $107,797

Investor read

• This is a 4-bed/2.5-bath other listed at $385k.
• At list price, monthly cash flow is $-799 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $269k (30.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (38.3% below list).
• It's been on market 65 days — a 6% lower offer ($362k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (38.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $12k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#22 in IA, #682 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F.
• Waukee Community School District (suburban): math 80% / reading 79% proficiency, ranked #14 of 289 in IA (top 5%) — strong family-tenant draw, lease renewals of 3-5y typical; only 11% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+1.8%/yr); 886 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,503 units permitted in Dallas County in 2024 (630 in 5+ unit buildings).
• Dallas County population projected at +74% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 7 sale attempts; this cycle's ask has dropped $30k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 3.8% vs local median 3.0% in Waukee — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 38% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.