5718 NE Dawson Ln

Ankeny, IA 50021

$229,000D-

3 bd · 2.5 ba · 1,380 sqft · Built 2021 · Townhouse · Active · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,759/mo
• Mortgage (P&I): −$1,201
• Tax + insurance: −$449
• HOA: −$160
• Vac / Maint / Mgmt: −$369
• Net cashflow: $-420/mo
• Annual: $-5,040/yr
• Cap rate: 4.09%
• Cash-on-cash: -7.86%
• DSCR: 0.65
• 1% rule: 0.77%
• Cash to close: $64,120

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $229k. Condition is rated good.
• At list price, monthly cash flow is $-420 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $155k (32.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $176k (23.2% below list).
• It's been on market 116 days — a 9% lower offer ($208k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $155k (32.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 92/100 on livability (#3 in IA, #29 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, housing A+; Watch: commute C-.
• North Polk Community School District (rural): math 87% / reading 84% proficiency, ranked #7 of 289 in IA (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 9% free/reduced lunch — higher-income household profile.
• Zoned schools: North Polk Central Elementary School (math 83% / reading 72%, grade A, #101 of 616 statewide, top 16%, 342 students, 11% FRL); North Polk Middle School (math 85% / reading 87%, grade A+, #8 of 246 statewide, top 3%, 455 students, 10% FRL); North Polk High School (math 88% / reading 89%, grade A, #3 of 336 statewide, top 1%, 647 students, 10% FRL) — zoned schools at 10% FRL track the district average.
• Market conditions: Rents flat; 869 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 5y ago 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.
• Cap rate 4.1% vs local median 2.9% in Ankeny — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 116 days. Have you received any prior offers? Is the seller open to a 32% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 A-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.