309 Iowa St

Archer, IA 51231

$109,000D+

2 bd · 1.5 ba · 946 sqft · Built 1904 · SingleFamily · Pending · 42 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $880/mo
• Mortgage (P&I): −$572
• Tax + insurance: −$106
• HOA: −$0
• Vac / Maint / Mgmt: −$185
• Net cashflow: $17/mo
• Annual: $206/yr
• Cap rate: 6.48%
• Cash-on-cash: 0.68%
• DSCR: 1.03
• 1% rule: 0.81%
• Cash to close: $30,520

Investor read

• This is a 2-bed/1.5-bath single-family listed at $109k.
• At list price, monthly cash flow is $17 ($206/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 $88k (19.3% below list).
• It's been on market 42 days — a 3% lower offer ($106k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (19.3% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($754 loan paydown + $8k appreciation (7.7% local appreciation)).
• Location reads 61/100 on livability (#792 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B; Watch: employment D+, health & safety D, amenities F.
• Sheldon Community School District (town): math 74% / reading 78% proficiency, ranked #63 of 289 in IA (top 22%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Sheldon Middle School (math 70% / reading 78%, grade A, #83 of 246 statewide, top 34%, 320 students, 47% FRL); Sheldon High School (math 73% / reading 81%, grade A-, #60 of 336 statewide, top 21%, 342 students, 39% FRL).
• Watch-outs: built in 1904 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 13 units permitted in O'Brien County in 2024 (0 in 5+ unit buildings).
• O'Brien County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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 $72k; list at $109k implies a 50% gain — meaningful room to come down on a strong offer.
• At projected returns (7.7% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 42 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1904 — 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 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.
• 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.