304 Lincoln St

Plainfield, IA 50666

$135,000C-

4 bd · 2.5 ba · 2,279 sqft · Built 1940 · SingleFamily · Active · 132 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,241/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$212
• HOA: −$0
• Vac / Maint / Mgmt: −$261
• Net cashflow: $60/mo
• Annual: $723/yr
• Cap rate: 6.83%
• Cash-on-cash: 1.91%
• DSCR: 1.09
• 1% rule: 0.92%
• Cash to close: $37,800

Investor read

• This is a 4-bed/2.5-bath single-family listed at $135k.
• At list price, monthly cash flow is $60 ($723/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $124k (8.1% below list).
• It's been on market 132 days — a 12% lower offer ($119k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (12.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($933 loan paydown + $3k appreciation (1.9% local appreciation)).
• Location reads 64/100 on livability (#614 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Nashua-Plainfield Community School District (rural): math 71% / reading 70% proficiency, ranked #136 of 289 in IA (top 47%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Nashua-Plainfield Elementary School (math 72% / reading 72%, grade A-, #181 of 616 statewide, top 34%, 272 students, 29% FRL); Nashua-Plainfield Junior-Seniorhigh School (math 71% / reading 68%, grade B, #152 of 336 statewide, top 52%, 310 students, 31% FRL).
• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 34 units permitted in Bremer County in 2024 (0 in 5+ unit buildings).
• Bremer County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 5y ago; this cycle's ask has dropped $14k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $112k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.9% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 132 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1940 — 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.
• 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.