1332 Holiday Ln

Holiday Lake, IA 52211

$210,000D

2 bd · 1.5 ba · 1,410 sqft · Built 1962 · SingleFamily · Active · 295 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,100/mo
• Mortgage (P&I): −$1,101
• Tax + insurance: −$264
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $-496/mo
• Annual: $-5,955/yr
• Cap rate: 3.46%
• Cash-on-cash: -10.13%
• DSCR: 0.55
• 1% rule: 0.52%
• Cash to close: $58,800

Investor read

• This is a 2-bed/1.5-bath single-family listed at $210k.
• At list price, monthly cash flow is $-496 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $122k (41.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (47.6% below list).
• It's been on market 295 days — a 12% lower offer ($185k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (47.6% below list) — sets the bar for 1% rule.
• In year one you build about $19k of equity ($1k loan paydown + $18k appreciation (8.6% local appreciation)).
• Location reads 66/100 on livability (#524 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D, amenities F, commute F.
• Brooklyn-Guernsey-Malcom Community School District (rural): math 72% / reading 74% proficiency, ranked #101 of 289 in IA (top 35%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 57 active listings in the ZIP; 27 units permitted in Poweshiek County in 2024 (0 in 5+ unit buildings).
• Poweshiek County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $40k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.5% vs local median 1.8% in Holiday Lake — 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.

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 295 days. Have you received any prior offers? Is the seller open to a 48% concession, seller financing, or rate buy-down credit?
• Built in 1962 — 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.
• 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?
• 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.