400 N Richland St

Richland, IA 52585

$29,000C-

5 bd · 1.0 ba · 1,452 sqft · Built 1895 · SingleFamily · Active · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,213/mo
• Mortgage (P&I): −$152
• Tax + insurance: −$41
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $765/mo
• Annual: $9,181/yr
• Cap rate: 37.95%
• Cash-on-cash: 113.06%
• DSCR: 6.03
• 1% rule: 4.18%
• Cash to close: $8,120

Investor read

• This is a 5-bed/1.0-bath single-family listed at $29k.
• At list price, monthly cash flow is $765 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $29k).
• It's been on market 26 days — a 2% lower offer ($29k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $29k (1.5% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($200 loan paydown + $2k appreciation (5.9% local appreciation)).
• Location reads 63/100 on livability (#650 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, schools D, health & safety D.
• Pekin Community School District (rural): math 71% / reading 73% proficiency, ranked #121 of 289 in IA (top 42%) — strong family-tenant draw, lease renewals of 3-5y typical; only 19% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1895 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 1 units permitted in Keokuk County in 2024 (0 in 5+ unit buildings).
• Keokuk County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1895 — 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 D-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.