113 Hearn St

Eldon, IA 52554

$6,900C-

2 bd · 1.0 ba · 748 sqft · Built 1888 · SingleFamily · Active · 153 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $817/mo
• Mortgage (P&I): −$36
• Tax + insurance: −$12
• HOA: −$0
• Vac / Maint / Mgmt: −$172
• Net cashflow: $598/mo
• Annual: $7,173/yr
• Cap rate: 110.25%
• Cash-on-cash: 371.29%
• DSCR: 17.52
• 1% rule: 11.84%
• Cash to close: $1,932

Investor read

• This is a 2-bed/1.0-bath single-family listed at $7k.
• At list price, monthly cash flow is $598 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($817 rent vs $7k).
• It's been on market 153 days — a 12% lower offer ($6k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6k (12.0% below list) — sets the bar for market timing.
• In year one you build about $125 of equity ($48 loan paydown + $77 appreciation (1.1% local appreciation)).
• Location reads 59/100 on livability (#863 in IA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: schools C-, crime C-, health & safety C-.
• Cardinal Community School District (rural): math 54% / reading 58% proficiency, ranked #262 of 289 in IA (top 91%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1888 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 44 units permitted in Wapello County in 2024 (0 in 5+ unit buildings).
• Wapello County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (1.1% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 153 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1888 — 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.
• 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.