1221 Downing Ave · Waterloo, IA 50701

$145,500

3 bd · 2.0 ba · 1,344 sqft · SingleFamily public records · 104 Days on market

Built 1940 0.41 ac lot $108/sqft · at area comps Est $171k · 15% under

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Why this score? — see what drove the C- 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 +14.4/30.0
• ARV discount +14.3/15.0
• DSCR +4.4/10.0
• Schools +4.4/10.0
• 1% rule +4.2/10.0
• Livability +4.0/5.0
• Rent growth +3.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to 1221 Downing Ave! This spacious home offers incredible potential and a fantastic opportunity to build equity with your personal updates and finishing touches. The main level features a generous front living room filled with natural light, two comfortable bedrooms with great closet space, and a full bathroom. The kitchen provides ample cabinetry and seamlessly flows into the open dining area — ideal for both everyday living and entertaining. A convenient main-floor laundry room adds functionality, while the primary suite with its own private bathroom completes the layout. The lower level expands your living space with a large family room, a sizeable non-conforming bedroom, and a substantial storage/utility area to meet your needs. Outside, you'll appreciate the oversized two-stall garage and the spacious yard — perfect for relaxing, gardening, or outdoor activities. With solid space, a desirable layout, and room to make it your own, this home is full of opportunity. Schedule your showing today!

Key facts

• Spacious yard
• Large family room
• Ample cabinetry

Tags

• AMPLE CABINETRY
• MAIN-FLOOR LAUNDRY ROOM
• PRIVATE BATHROOM
• LARGE FAMILY ROOM
• OVERSIZED TWO-STALL GARAGE
• SPACIOUS YARD

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $146k.

Deal economics

• At list price, monthly cash flow is $31 ($367/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (8.0% below list).
• Recommended offer: $132k (9.0% below list) — sets the bar for market timing.
• Cap rate 6.5% vs local median 4.2% in Waterloo — 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 81/100 on livability (#74 in IA, #1,589 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F, employment D-.
• Waterloo Community School District (urban): math 50% / reading 54% proficiency, ranked #276 of 289 in IA (top 96%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Fred Becker Elementary School (math 57% / reading 47%, grade C-, #494 of 616 statewide, top 83%, 473 students, 76% FRL); Central Middle School (math 49% / reading 46%, grade C-, #226 of 246 statewide, top 92%, 471 students, 85% FRL); West High School (math 55% / reading 63%, grade C+, #273 of 336 statewide, top 81%, 1,652 students, 62% FRL) — zoned schools average 75% FRL vs 58% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.8%/yr); 285 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 69% of comp listings sitting > 30 days — soft ceiling on asking rent; 287 units permitted in Black Hawk County in 2024 (67 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Black Hawk County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 104 days — a 9% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 7y 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.
• Current owner paid $122k; 20% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $132,405 (9.0% below list)

Questions for the listing agent

1. It's been on market 104 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
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: 0.92% ✗
• Cap rate: 6.55%
• Cash-on-cash: 0.90%
• DSCR: 1.04
• GRM: 9.1

CMA / ARV

• ARV (median comp): $171,388
• List price: $145,500
• Delta: -15.10%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1107 Downing Ave Ave	0.08mi	3/1.5	1,518 (+13%)	5mo	$172,900	$114	69
131 Axlewood Dr	0.61mi	3/2.0	1,392 (+4%)	2mo	$274,000	$197	64
117 Axlewood Dr	0.66mi	3/2.0	1,392 (+4%)	1mo	$279,000	$200	62
323 Hartman Ave	0.57mi	3/2.0	1,380 (+3%)	8mo	$170,300	$123	62
600 Beverly Hills St	0.74mi	3/1.5	1,285 (-4%)	3mo	$195,000	$152	54
1269 Scott Ave	0.52mi	3/1.0	1,466 (+9%)	6mo	$140,000	$95	51
1018 Janney Ave	0.33mi	2/1.5 (-1)	1,168 (-13%)	8mo	$115,000	$98	49
725 Harwood Ave	0.55mi	3/2.0	1,183 (-12%)	7mo	$187,000	$158	48
119 Axlewood Dr	0.65mi	3/3.0	1,461 (+9%)	4mo	$266,500	$182	48
1275 Deloris Dr	0.70mi	2/2.0 (-1)	1,488 (+11%)	7mo	$200,000	$134	39
640 Maxwell St	0.59mi	4/1.0 (+1)	1,168 (-13%)	7mo	$152,000	$130	36
1200 St Andrews Ave	0.71mi	4/2.0 (+1)	1,544 (+15%)	7mo	$220,000	$142	31

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.8% rent growth · sell at horizon

5-year hold

• IRR: -13.9%
• Equity multiple: 0.50×
• Total profit: $-20,511
• Equity at exit: $21,695

10-year hold

• IRR: -3.8%
• Equity multiple: 0.74×
• Total profit: $-10,690
• Equity at exit: $12,580

Cash invested: $40,740 (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 50701

• Rents YoY: 3.8%
• Active inventory: 285
• Price-to-rent: 9.1×

Monthly cashflow live

• Estimated rent: $1,338 high
• Mortgage (P&I): −$763
• Tax from tax record: −$203 /mo · $2,434/yr
• Insurance: −$61
• HOA: −$0
• Vacancy / Maint / Mgmt: −$281
• Net cashflow: $31

Break-even live

Break-even rent $1,299

Max offer price $145,500

Occupancy floor 93%

Sensitivity live

Price	-10% $113	-5% $72	+0% $31	+5% $-11	+10% $-52
Rent	-10% $-75	-5% $-22	+0% $31	+5% $83	+10% $136
Rate	-1.0pp $104	-0.5pp $68	base $31	+0.5pp $-7	+1.0pp $-45

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: $36,375
• Closing costs: $4,365
• Reserves months: —
• Total cash needed: —

Rent comps 13 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1247 Doreen Ave Waterloo, IA	4.0	1.0	1288	$1,500	$1.16	23d	1	0.19mi
2215 Falls Ave Waterloo, IA	3.0	1.0	1290	$1,400	$1.09	46d	1	0.49mi
2539 W 3rd St Waterloo, IA	3.0	2.5	1200	$1,695	$1.41	23d	1	0.72mi
425 Auburn St Waterloo, IA	3.0	1.0	983	$1,450	$1.48	46d	1	0.80mi
136 Janney Ave Waterloo, IA	2.0	2.0	901	$1,325	$1.47	46d	1	0.81mi
1840 W 3rd St Waterloo, IA	2.0	1.0	1770	$700	$0.40	46d	1	1.14mi
1427 W 2nd St Waterloo, IA	3.0	1.0	1248	$1,250	$1.00	46d	1	1.31mi
719 Marsh St Waterloo, IA	3.0	1.0	1224	$1,100	$0.90	23d	1	1.37mi
616 Kimball Ave Waterloo, IA	3.0	1.0	1302	$1,100	$0.84	46d	1	1.38mi
313 Denver St Unit Downstairs Waterloo, IA	2.0	1.5	950	$695	$0.73	23d	1	1.45mi
3856 Jay Ln Waterloo, IA	3.0	3.5	1520	$1,975	$1.30	46d	1	1.47mi
416 Sunnyside Ave Waterloo, IA	3.0	1.0	1200	$825	$0.69	46d	1	1.48mi
418 Sunnyside Ave Waterloo, IA	3.0	1.0	1200	$675	$0.56	46d	1	1.48mi

Listing history 19 events

1. 2026-06-08
   days on market $145,500 Active 104 DOM
2. 2026-06-07
   days on market $145,500 Active 103 DOM
3. 2026-06-05
   days on market $145,500 Active 100 DOM
4. 2026-06-03
   days on market $145,500 Active 99 DOM
5. 2026-06-02
   days on market $145,500 Active 98 DOM
6. 2026-06-01
   days on market $145,500 Active 97 DOM
7. 2026-05-31
   days on market $145,500 Active 96 DOM
8. 2026-05-30
   days on market $145,500 Active 95 DOM
9. 2026-02-24
   listed $145,500 Active 1031-char remark

   Show marketing remark (1031 chars)

   Welcome to 1221 Downing Ave! This spacious home offers incredible potential and a fantastic opportunity to build equity with your personal updates and finishing touches. The main level features a generous front living room filled with natural light, two comfortable bedrooms with great closet space, and a full bathroom. The kitchen provides ample cabinetry and seamlessly flows into the open dining area — ideal for both everyday living and entertaining. A convenient main-floor laundry room adds functionality, while the primary suite with its own private bathroom completes the layout. The lower level expands your living space with a large family room, a sizeable non-conforming bedroom, and a substantial storage/utility area to meet your needs. Outside, you'll appreciate the oversized two-stall garage and the spacious yard — perfect for relaxing, gardening, or outdoor activities. With solid space, a desirable layout, and room to make it your own, this home is full of opportunity. Schedule your showing today!

10. 2025-12-10
    price $145,500
11. 2025-11-11
    price $147,500
12. 2025-10-29
    price $149,000
13. 2025-10-02
    price $149,900
14. 2025-09-09
    price $152,500
15. 2025-09-03
    price $154,500
16. 2019-08-28
    soldstatus $121,500
17. 2019-08-28
    soldstatus $121,500
18. 2019-08-27
    soldstatus $121,500
19. 2019-06-05
    listed $119,500

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

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $2,434 · $203/mo
• Projected year-2 tax: $2,434 · $203/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,057
• − Mortgage interest: −$8,150
• − Property taxes: −$2,434
• − Insurance: −$728
• − Repairs & maintenance: −$1,285
• − Management: −$1,285
• − Depreciation: −$4,233
• Taxable loss: −$2,057
• Est. tax savings @ 24.0%: +$494
• After-tax cash flow: $861/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.

Schools (NCES district)

• District: Waterloo Community School District
• NCES district ID: 1930480
• Math proficiency: 50% ▼ -4.00%
• Reading proficiency: 54% ▲ 1.00%
• Median HH income: $42,545
• Composite: 43.72/100
• National rank: #2950
• State rank: #276 of 289 in IA

Livability — Waterloo

• Score: 81/100
• State rank: #74
• US rank: #1589

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Waterloo, IA
• County: Black Hawk County · 112,933 people
• City population: 69,066
• Metro: Waterloo-Cedar Falls, IA
• Population (ZIP): 30,232
• Household income: $61,475
• Rent vs Own: 32.8% rent · 67.2% own
• Severe rent burden: 1377.0

Population outlook (Black Hawk County) Hauer SSP2

• Today (2025): 139,716 people
• By 2030: 142,853 · +2.2%
• By 2040: 147,843 · +5.8%
• By 2050: 153,247 · +9.7%
• By 2075: 167,977 · +20.2%
• By 2100: 177,320 · +26.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (78%)
• Race & ethnicity: White 78% Black 11% Two or more races 5% Hispanic / Latino 3% Asian 3%
• Common ancestry: Portuguese 3% Italian 3% American 2%
• Foreign-born: 7% · Canada, South Korea, Vietnam
• Languages at home: 92% English-only · Russian/Polish/Slavic 2% Spanish 2% French/Haitian/Cajun 2%

Political lean MEDSL · Black Hawk

• 2024 margin: Toss-up / Even · D 50.0% · R 48.8% · Other 1.2%
• 2008→2024 swing: -21.3pp toward R · 2008: 22.4pp · 2024: 1.2pp
• All cycles: 2024: D+1.2 2020: D+9.0 2016: D+7.3 2012: D+20.0 2008: D+22.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -107.19%
• Current HPI: 162.8951
• Rent YoY: ▲ 3.80%
• Metro: Waterloo-Cedar Falls, 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

+21.8% since first listed

11 events — show timeline

• 2026-02-24 Listed $145,500 NEIRBR as distributed by MLS GRID
• 2025-12-10 Price Changed $145,500 NEIRBR as distributed by MLS GRID
• 2025-11-11 Price Changed $147,500 NEIRBR as distributed by MLS GRID
• 2025-10-29 Price Changed $149,000 NEIRBR as distributed by MLS GRID
• 2025-10-02 Price Changed $149,900 NEIRBR as distributed by MLS GRID
• 2025-09-09 Price Changed $152,500 NEIRBR as distributed by MLS GRID
• 2025-09-03 Price Changed $154,500 NEIRBR as distributed by MLS GRID
• 2019-08-28 Sold (Public Records) $121,500 Public Records
• 2019-08-28 Sold (Public Records) $121,500 Public Records
• 2019-08-27 Sold (MLS) $121,500 NEIRBR as distributed by MLS GRID
• 2019-06-05 Listed $119,500 NEIRBR as distributed by MLS GRID

Property tax history

+0.6%/yr

Latest (2020): $2,434 · -1.2% YoY. Source: county tax records.