425 S 2nd St · Ames, IA 50010

$28,000

2 bd · 3.0 ba · 896 sqft · Other · 35 Days on market

Built 1974 Fair condition

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Why this score? — see what drove the B grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +5.9/10.0
• Livability +4.7/5.0
• Rent growth +3.2/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Listing remarks

2 Bedroom, 2 Bathroom 1974 Marshfield mobile home 896 square feet Width: 16 & acirc; & euro; & trade; Length: 56 & acirc; & euro; & trade; HVAC: Central Air- New AC installed: 2020, Furnace serviced 2025 Water heater: 2019 New energy-efficient windows: 2020 Heat-tape and insulation replaced: 2020 Asking $28,000 or best offer. Appliances included. Washer/Dryer: 2015 Refrigerator: 2021 Dishwasher: 2003 Gas stove/oven Lot Rent: $486 Water/Internet included in lot rent. Gas + Electric are typically $80- $150/month, depending on the time of year. Beautiful corner lot, you cannot get any closer than this to a bus stop or to the tailgating lots! Includes a deck and she

Key facts

• New shower
• Tornado shelter
• Jacuzzi tub

Tags

• NEW ENERGY EFFICIENT WINDOWS
• JACUZZI TUB
• NEW KITCHEN COUNTERTOP
• NEW SHOWER
• TORNADO SHELTER
• TENNIS PICKLEBALL COURT

What this means for you Summary

Snapshot

• This is a 2-bed/3.0-bath other listed at $28k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $619 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $28k).
• Recommended offer: $27k (3.0% below list) — sets the bar for market timing.
• Cap rate 32.8% vs local median 2.2% in Ames — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 93/100 on livability (#2 in IA, #21 nationally) — a professional / high-income tenant draw. Strengths: schools A+, amenities A+, commute A+; Watch: employment C-.
• Ames Community School District (urban): math 70% / reading 72% proficiency, ranked #147 of 289 in IA (top 51%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: Rents rising (+2.7%/yr); 183 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 196 units permitted in Story County in 2024 (34 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $194 of loan paydown is wiped out by about $840 of value loss. Plan a longer hold.
• Story County population projected at +54% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 2.7% rent growth), your $8k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 35 days — a 3% lower offer ($27k) is reasonable based on typical stale-listing flexibility.

Recommended offer $27,160 (3.0% below list)

Questions for the listing agent

1. It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 3.67% ✓
• Cap rate: 32.82%
• Cash-on-cash: 94.73%
• DSCR: 5.22
• GRM: 2.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.69% rent growth · sell at horizon

5-year hold

• IRR: 95.3%
• Equity multiple: 5.41×
• Total profit: $34,577
• Equity at exit: $4,175

10-year hold

• IRR: 97.9%
• Equity multiple: 11.16×
• Total profit: $79,626
• Equity at exit: $2,421

Cash invested: $7,840 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50010

• Rents YoY: 2.7%
• Active inventory: 183
• Price-to-rent: 2.3×

Monthly cashflow live

• Estimated rent: $1,028 medium
• Mortgage (P&I): −$147
• Tax est. 1.5%: −$35 /mo · $420/yr
• Insurance: −$12
• HOA: −$0
• Vacancy / Maint / Mgmt: −$216
• Net cashflow: $619

Break-even live

Break-even rent $245

Max offer price $28,000

Occupancy floor 35%

Sensitivity live

Price	-10% $638	-5% $629	+0% $619	+5% $609	+10% $600
Rent	-10% $538	-5% $578	+0% $619	+5% $660	+10% $700
Rate	-1.0pp $633	-0.5pp $626	base $619	+0.5pp $612	+1.0pp $604

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $7,000
• Closing costs: $840
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
216 S Kellogg Ave Ames, IA	3.0–4.0	2.0	1087	$1,050	$0.97	44d	1	0.21mi
908 Douglas Ave Ames, IA	2.0–3.0	1.5–2.0	881	$1,085	$1.23	44d	2	0.65mi
405 E 6th St Unit 4 Ames, IA	2.0	1.0	775	$850	$1.10	44d	1	0.70mi

Listing history 15 events

1. 2026-06-16
   status $28,000 Under Contract 35 DOM
2. 2026-06-15
   days on market $28,000 Active 35 DOM
3. 2026-06-14
   days on market $28,000 Active 33 DOM
4. 2026-06-13
   days on market $28,000 Active 32 DOM
5. 2026-06-10
   days on market $28,000 Active 30 DOM
6. 2026-06-09
   days on market $28,000 Active 29 DOM
7. 2026-06-08
   days on market $28,000 Active 28 DOM
8. 2026-06-07
   days on market $28,000 Active 27 DOM
9. 2026-06-05
   days on market $28,000 Active 24 DOM
10. 2026-06-03
    days on market $28,000 Active 23 DOM
11. 2026-06-02
    days on market $28,000 Active 22 DOM
12. 2026-06-01
    days on market $28,000 Active 21 DOM
13. 2026-05-31
    days on market $28,000 Active 20 DOM
14. 2026-05-30
    days on market $28,000 Active 19 DOM
15. 2026-05-12
    listed $28,000 Active 2454-char remark

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $12,340
• − Mortgage interest: −$1,568
• − Property taxes: −$420
• − Insurance: −$140
• − Repairs & maintenance: −$987
• − Management: −$987
• − Depreciation: −$815
• Taxable income: $7,423
• Est. tax owed @ 24.0%: −$1,782
• After-tax cash flow: $5,645/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 1 photo

Fair 45/100 Moderate rehab

This property requires significant repairs and updates to its exterior, interior, and landscaping to improve its condition and value.

Repairs flagged

• Major exterior siding — Peeling and in need of repair.
• Major roof — Visible damage and may need replacement.
• Major flooring — Worn and may need replacement.
• Major interior walls/paint — Needs freshening and touch-up.
• Major bathrooms — Outdated and may need updates.
• Major kitchen — Outdated and may need updates.
• Major landscaping — Overgrown and may need trimming and maintenance.

Value-add opportunities

• Both New exterior siding — Improves curb appeal and adds value.
• Both New roof — Fixes major issue and adds value.
• Both New flooring — Improves living space and adds value.
• Both Paint and interior updates — Freshens up the interior and adds value.
• Both Bathroom updates — Modernizes the bathrooms and adds value.
• Both Kitchen updates — Modernizes the kitchen and adds value.
• Both Landscaping and curb appeal — Improves curb appeal and adds value.

Renovation cost estimate screening

Repair item	Severity	Est. cost
exterior siding · Peeling and in need of repair.	Major	$15,000–50,000
roof · Visible damage and may need replacement.	Major	$15,000–50,000
flooring · Worn and may need replacement.	Major	$15,000–50,000
interior walls/paint · Needs freshening and touch-up.	Major	$15,000–50,000
bathrooms · Outdated and may need updates.	Major	$15,000–50,000
kitchen · Outdated and may need updates.	Major	$15,000–50,000
landscaping · Overgrown and may need trimming and maintenance.	Major	$15,000–50,000
Total estimated repair cost · 7 items		$105,000–350,000

Value-add ROI direction

• Both New exterior siding — Improves curb appeal and adds value. ↑
• Both New roof — Fixes major issue and adds value. ↑
• Both New flooring — Improves living space and adds value. ↑
• Both Paint and interior updates — Freshens up the interior and adds value. ↑
• Both Bathroom updates — Modernizes the bathrooms and adds value. ↑
• Both Kitchen updates — Modernizes the kitchen and adds value. ↑
• Both Landscaping and curb appeal — Improves curb appeal and adds value. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Ames Community School District
• NCES district ID: 1903540
• Math proficiency: 70% ▼ -5.00%
• Reading proficiency: 72% ▼ -1.00%
• Median HH income: $39,790
• Composite: 59.22/100
• National rank: #941
• State rank: #147 of 289 in IA

Livability — Ames

• Score: 93/100
• State rank: #2
• US rank: #21

Category grades

Amenities A+ Commute A+ Cost of living A+ Crime A- Employment C- Housing A+ Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ames, IA
• County: Story County · 66,757 people
• City population: 66,757
• Metro: Ames, IA
• Population (ZIP): 33,799
• Household income: $65,398
• Rent vs Own: 46.8% rent · 53.2% own
• Severe rent burden: 1523.0

Population outlook (Story County) Hauer SSP2

• Today (2025): 115,493 people
• By 2030: 126,820 · +9.8%
• By 2040: 150,771 · +30.5%
• By 2050: 177,915 · +54.0%
• By 2075: 255,370 · +121.1%
• By 2100: 316,429 · +174.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (79%)
• Race & ethnicity: White 79% Asian 7% Hispanic / Latino 6% Two or more races 5% Black 4%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 6% Iranian 2% Slovak 2%
• Foreign-born: 11% · China, Canada, South Korea
• Languages at home: 88% English-only · Chinese 3% Other Indo-European 3% Spanish 2%

Political lean MEDSL · Story

• 2024 margin: D (+10.4) · D 54.4% · R 44.0% · Other 1.6%
• 2008→2024 swing: -5.8pp toward R · 2008: 16.2pp · 2024: 10.4pp
• All cycles: 2024: D+10.4 2020: D+17.3 2016: D+12.2 2012: D+13.7 2008: D+16.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -121.78%
• Current HPI: 170.4215
• Rent YoY: ▲ 2.69%
• Metro: Ames, IA
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

2 events — show timeline

• 2026-06-16 Pending — FSBO.com
• 2026-05-12 Listed $28,000 FSBO.com