604 Frankfort Avenue Ave NE

Orange City, IA 51041

$224,000D

4 bd · 2.5 ba · 1,325 sqft · Built 1970 · SingleFamily · Pending · 36 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,427/mo
• Mortgage (P&I): −$1,175
• Tax + insurance: −$303
• HOA: −$0
• Vac / Maint / Mgmt: −$300
• Net cashflow: $-350/mo
• Annual: $-4,202/yr
• Cap rate: 4.42%
• Cash-on-cash: -6.70%
• DSCR: 0.70
• 1% rule: 0.64%
• Cash to close: $62,720

Investor read

• This is a 4-bed/2.5-bath single-family listed at $224k.
• At list price, monthly cash flow is $-350 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (27.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $143k (36.3% below list).
• It's been on market 36 days — a 3% lower offer ($217k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $143k (36.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 88/100 on livability (#9 in IA, #216 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities C-, commute F.
• Moc-Floyd Valley Community School District (town): math 83% / reading 86% proficiency, ranked #12 of 289 in IA (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Moc-Floyd Valley Middle School (math 80% / reading 85%, grade A+, #16 of 246 statewide, top 8%, 329 students, 26% FRL); Moc-Floyd Valley High School (math 79% / reading 82%, grade A, #30 of 336 statewide, top 9%, 487 students, 26% FRL) — zoned schools at 26% FRL track the district average.
• Market conditions: 70 active listings in the ZIP; 201 units permitted in Sioux County in 2024 (52 in 5+ unit buildings).
• Sioux County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 4.4% vs local median 2.1% in Orange 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.

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 36 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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 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.
• 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.