224 Washington St

Ainsworth, IA 52201

$85,000B

4 bd · 1.5 ba · 1,944 sqft · Built 1900 · SingleFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,139/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$180
• HOA: −$0
• Vac / Maint / Mgmt: −$239
• Net cashflow: $274/mo
• Annual: $3,293/yr
• Cap rate: 10.17%
• Cash-on-cash: 13.84%
• DSCR: 1.62
• 1% rule: 1.34%
• Cash to close: $23,800

Investor read

• This is a 4-bed/1.5-bath single-family listed at $85k.
• At list price, monthly cash flow is $274 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 33 days — a 3% lower offer ($82k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $82k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($588 loan paydown + $2k appreciation (2.8% local appreciation)).
• Location reads 65/100 on livability (#550 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: health & safety D, amenities F, commute F.
• Highland Community School District (rural): math 71% / reading 65% proficiency, ranked #140 of 289 in IA (top 48%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Highland Elementary School (math 67% / reading 52%, grade B-, #390 of 616 statewide, top 69%, 283 students, 23% FRL); Highland Middle School (math 72% / reading 67%, grade A, #113 of 246 statewide, top 49%, 111 students, 13% FRL); Highland High School (math 72% / reading 77%, grade B+, #89 of 336 statewide, top 30%, 171 students, 24% FRL) — zoned schools at 20% FRL track the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 42 units permitted in Washington County in 2024 (12 in 5+ unit buildings).
• Washington County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (2.8% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 33 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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 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.