402 Douglas Ave

Ackley, IA 50601

$73,900A

4 bd · 1.0 ba · 1,440 sqft · Built 1920 · SingleFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,085/mo
• Mortgage (P&I): −$388
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$228
• Net cashflow: $403/mo
• Annual: $4,833/yr
• Cap rate: 12.83%
• Cash-on-cash: 23.35%
• DSCR: 2.04
• 1% rule: 1.47%
• Cash to close: $20,692

Investor read

• This is a 4-bed/1.0-bath single-family listed at $74k.
• At list price, monthly cash flow is $403 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $74k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($511 loan paydown + $2k appreciation (2.8% local appreciation)).
• Location reads 70/100 on livability (#377 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Agwsr Community School District (rural): math 60% / reading 69% proficiency, ranked #198 of 289 in IA (top 68%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Agwsr Elementary School (math 62% / reading 57%, grade B-, #390 of 616 statewide, top 69%, 191 students, 38% FRL); Agwsr Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 161 students, 41% FRL); Agwsr High School (math 67% / reading 77%, grade B+, #117 of 336 statewide, top 39%, 192 students, 35% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 29 active listings in the ZIP; 6 units permitted in Hardin County in 2024 (0 in 5+ unit buildings).
• Hardin County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.