112 Pine St. St

Peterson, IA 51047

$71,999A

3 bd · 2.0 ba · 1,248 sqft · Built 1900 · SingleFamily · Active · 244 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,139/mo
• Mortgage (P&I): −$378
• Tax + insurance: −$63
• HOA: −$0
• Vac / Maint / Mgmt: −$239
• Net cashflow: $459/mo
• Annual: $5,510/yr
• Cap rate: 13.95%
• Cash-on-cash: 27.33%
• DSCR: 2.22
• 1% rule: 1.58%
• Cash to close: $20,160

Investor read

• This is a 3-bed/2.0-bath single-family listed at $72k. Condition is rated fair.
• At list price, monthly cash flow is $459 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $72k).
• It's been on market 244 days — a 12% lower offer ($63k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $63k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($498 loan paydown + $2k appreciation (2.4% local appreciation)).
• Location reads 65/100 on livability (#584 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Sioux Central Community School District (rural): math 68% / reading 73% proficiency, ranked #143 of 289 in IA (top 50%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Sioux Central Elementary School (math 77% / reading 67%, grade A-, #181 of 616 statewide, top 34%, 241 students, 26% FRL); Sioux Central Middle School (math 67% / reading 72%, grade A, #113 of 246 statewide, top 49%, 141 students, 25% FRL); Sioux Central High School (math 62% / reading 77%, grade B, #152 of 336 statewide, top 52%, 274 students, 34% FRL) — zoned schools at 28% FRL track the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 11 units permitted in Clay County in 2024 (0 in 5+ unit buildings).
• Clay County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $11k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $30k; list at $72k implies a 140% gain — meaningful room to come down on a strong offer.
• At projected returns (2.4% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 244 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Severe wear and tear
• Major: Kitchen countertops — Severe wear and tear
• Major: Kitchen appliances — Outdated and worn
• Major: Bath fixtures — Old and worn
• Major: Bath flooring — Worn and damaged
• Moderate: Exterior siding — Worn and peeling