57846 150th Ave

Lacona, IA 50139

$229,900D-

3 bd · 1.0 ba · 1,142 sqft · Built 1930 · SingleFamily · Active · 82 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,100/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$189
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $-525/mo
• Annual: $-6,302/yr
• Cap rate: 3.55%
• Cash-on-cash: -9.79%
• DSCR: 0.56
• 1% rule: 0.48%
• Cash to close: $64,372

Investor read

• This is a 3-bed/1.0-bath single-family listed at $230k.
• At list price, monthly cash flow is $-525 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (40.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (52.1% below list).
• It's been on market 82 days — a 6% lower offer ($216k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (52.1% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($2k loan paydown + $3k appreciation (1.1% local appreciation)).
• Location reads 62/100 on livability (#702 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Southeast Warren Community School District (rural): math 65% / reading 70% proficiency, ranked #162 of 289 in IA (top 56%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Southeast Warren Primary (math 70% / reading 70%, grade A-, #224 of 616 statewide, top 42%, 130 students, 30% FRL); Southeast Warren Intermediate (math 62% / reading 72%, grade A-, #140 of 246 statewide, top 60%, 92 students, 37% FRL); Southeast Warren Jr-Sr High School (math 66% / reading 71%, grade B, #181 of 336 statewide, top 54%, 233 students, 24% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 3 units permitted in Lucas County in 2024 (0 in 5+ unit buildings).
• Lucas County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $20k; list at $230k implies a 1050% gain — meaningful room to come down on a strong offer.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 82 days. Have you received any prior offers? Is the seller open to a 52% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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.
• 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.