301 2nd Ave

Keystone, IA 52249

$234,900D-

3 bd · 2.0 ba · 1,622 sqft · Built 1963 · SingleFamily · Pending · 84 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,251/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$201
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $-444/mo
• Annual: $-5,333/yr
• Cap rate: 4.02%
• Cash-on-cash: -8.11%
• DSCR: 0.64
• 1% rule: 0.53%
• Cash to close: $65,772

Investor read

• This is a 3-bed/2.0-bath single-family listed at $235k.
• At list price, monthly cash flow is $-444 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $156k (33.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (46.7% below list).
• It's been on market 84 days — a 6% lower offer ($221k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (46.7% below list) — sets the bar for 1% rule.
• In year one you build about $21k of equity ($2k loan paydown + $19k appreciation (8.2% local appreciation)).
• Location reads 68/100 on livability (#459 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Benton Community School District (rural): math 63% / reading 74% proficiency, ranked #140 of 289 in IA (top 48%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Benton Community Middle School (math 61% / reading 76%, grade A, #126 of 246 statewide, top 53%, 235 students, 23% FRL); Benton Community Senior High School (math 63% / reading 78%, grade B+, #140 of 336 statewide, top 43%, 496 students, 27% FRL).
• Market conditions: 9 active listings in the ZIP; 34 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $15k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $67k; list at $235k implies a 251% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 84 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1963 — 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.
• Schools are B-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.