303 S 2nd St Unit A

Oskaloosa, IA 52577

$159,900D

2 bd · 1.5 ba · 1,361 sqft · Built 1980 · Condo · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,343/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$240
• HOA: −$0
• Vac / Maint / Mgmt: −$282
• Net cashflow: $-18/mo
• Annual: $-218/yr
• Cap rate: 6.16%
• Cash-on-cash: -0.49%
• DSCR: 0.98
• 1% rule: 0.84%
• Cash to close: $44,772

Investor read

• This is a 2-bed/1.5-bath condo listed at $160k.
• At list price, monthly cash flow is $-18 ($-218/yr) — negative.
• To cash-flow at today's rent, offer at most $157k (2.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $134k (16.0% below list).
• It's been on market 34 days — a 3% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $134k (16.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#57 in IA, #1,325 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities D-, commute F.
• Oskaloosa Community School District (rural): math 62% / reading 67% proficiency, ranked #208 of 289 in IA (top 72%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Oskaloosa Elementary School (math 67% / reading 62%, grade B, #317 of 616 statewide, top 58%, 886 students, 53% FRL); Oskaloosa Middle School (math 65% / reading 71%, grade A-, #131 of 246 statewide, top 53%, 454 students, 49% FRL); Oskaloosa High School (math 55% / reading 67%, grade C+, #258 of 336 statewide, top 78%, 600 students, 36% FRL) — zoned schools at 46% FRL track the district average.
• Market conditions: 73 active listings in the ZIP; 13 units permitted in Mahaska County in 2024 (0 in 5+ unit buildings).
• Mahaska County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 4y ago; this cycle's ask has dropped $20k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $115k; 39% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 6.2% vs local median 4.9% in Oskaloosa — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 34 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?
• 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.
• 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.