106 W Morton St

Lucas, IA 50151

$54,900B+

3 bd · 2.0 ba · 1,500 sqft · Built 2000 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,419/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$86
• HOA: −$0
• Vac / Maint / Mgmt: −$298
• Net cashflow: $747/mo
• Annual: $8,964/yr
• Cap rate: 22.62%
• Cash-on-cash: 58.31%
• DSCR: 3.59
• 1% rule: 2.58%
• Cash to close: $15,372

Investor read

• This is a 3-bed/2.0-bath single-family listed at $55k. Condition is rated fair.
• At list price, monthly cash flow is $747 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• It's been on market 20 days — a 2% lower offer ($54k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $54k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($380 loan paydown + $878 appreciation (1.6% local appreciation)).
• Location reads 61/100 on livability (#787 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Chariton Community School District (town): math 57% / reading 65% proficiency, ranked #241 of 289 in IA (top 83%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Columbus Elementary School (284 students, 58% FRL); Chariton Middle School (math 63% / reading 70%, grade A-, #148 of 246 statewide, top 61%, 285 students, 56% FRL); Chariton High School (math 57% / reading 73%, grade B, #208 of 336 statewide, top 62%, 392 students, 50% FRL).
• Market conditions: 10 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.
• 2 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (1.6% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Severe weathering
• Major: landscaping — Overgrown vegetation
• Major: flooring — Worn carpet
• Major: interior walls — Worn paint