305 E 6th St

Malvern, IA 51551

$229,000D-

3 bd · 2.5 ba · 1,768 sqft · Built 1890 · SingleFamily · Coming Soon · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,650/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$371
• HOA: −$0
• Vac / Maint / Mgmt: −$346
• Net cashflow: $-268/mo
• Annual: $-3,220/yr
• Cap rate: 4.89%
• Cash-on-cash: -5.02%
• DSCR: 0.78
• 1% rule: 0.72%
• Cash to close: $64,120

Investor read

• This is a 3-bed/2.5-bath single-family listed at $229k.
• At list price, monthly cash flow is $-268 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (20.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (27.9% below list).
• It's been on market 70 days — a 6% lower offer ($215k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $165k (27.9% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 81/100 on livability (#62 in IA, #1,413 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• East Mills Community School District (rural): math 71% / reading 73% proficiency, ranked #100 of 289 in IA (top 35%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: East Mills Elementary School (math 67% / reading 62%, grade B, #317 of 616 statewide, top 58%, 232 students, 52% FRL); East Mills Jr/Sr High School (math 72% / reading 82%, grade A-, #60 of 336 statewide, top 21%, 215 students, 36% FRL).
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 39 units permitted in Mills County in 2024 (0 in 5+ unit buildings).
• Mills County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $180k; 27% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 70 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1890 — 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.
• 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.