409 Main St

Alta, IA 51002

$55,000A-

3 bd · 1.0 ba · 1,168 sqft · Built 1900 · SingleFamily · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,097/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$132
• HOA: −$0
• Vac / Maint / Mgmt: −$230
• Net cashflow: $446/mo
• Annual: $5,353/yr
• Cap rate: 16.03%
• Cash-on-cash: 34.76%
• DSCR: 2.55
• 1% rule: 2.00%
• Cash to close: $15,400

Investor read

• This is a 3-bed/1.0-bath single-family listed at $55k.
• At list price, monthly cash flow is $446 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $6k of equity ($380 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#391 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, health & safety D, amenities F.
• Zoned schools: Alta Elementary School (math 72% / reading 62%, grade B+, #273 of 616 statewide, top 51%, 237 students, 41% FRL); Alta-Aurelia Middle Sch (math 71% / reading 79%, grade A, #72 of 246 statewide, top 30%, 231 students, 46% FRL); Alta-Aurelia High School (math 67% / reading 82%, grade B+, #89 of 336 statewide, top 30%, 206 students, 41% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 164 units permitted in Buena Vista County in 2024 (71 in 5+ unit buildings).
• Buena Vista County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• 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 B-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?
• 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.