1600 26th St Unit ET AL

Sioux City, IA 51104

$4,950,000C

7 bd · 3.0 ba · 44,256 sqft · Built 1953 · MultiFamily · Active · 235 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $53,664/mo
• Mortgage (P&I): −$25,958
• Tax + insurance: −$8,250
• HOA: −$0
• Vac / Maint / Mgmt: −$11,269
• Net cashflow: $8,186/mo
• Annual: $98,235/yr
• Cap rate: 8.28%
• Cash-on-cash: 7.09%
• DSCR: 1.32
• 1% rule: 1.08%
• Cash to close: $1,386,000

Investor read

• This is a 7-bed/3.0-bath multifamily listed at $4.95M. Condition is rated fair.
• At list price, monthly cash flow is $8k ($98k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($54k rent vs $4.95M).
• It's been on market 235 days — a 12% lower offer ($4.36M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $4.36M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $34k of loan paydown is wiped out by about $148k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#138 in IA, #2,544 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, commute F.
• Sioux City Community School District (urban): math 54% / reading 57% proficiency, ranked #264 of 289 in IA (top 91%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 120 active listings in the ZIP; solid renter incomes; 170 units permitted in Woodbury County in 2024 (90 in 5+ unit buildings).
• Cap rate 8.3% vs local median 3.7% in Sioux City — 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.
• At $53,664/mo this rent would consume 854% of the median local household income ($75k/yr) (locally 600% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 235 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Exterior siding — Weathered appearance
• Moderate: Basement unfinished — Potential for HVAC updates