108 N Vernon St #3

Conrad, IA 50621

$89,900D

2 bd · 1.0 ba · 884 sqft · Built 1972 · SingleFamily · Pending · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $575/mo
• Mortgage (P&I): −$471
• Tax + insurance: −$103
• HOA: −$200
• Vac / Maint / Mgmt: −$121
• Net cashflow: $-320/mo
• Annual: $-3,842/yr
• Cap rate: 2.02%
• Cash-on-cash: -15.26%
• DSCR: 0.32
• 1% rule: 0.64%
• Cash to close: $25,172

Investor read

• This is a 2-bed/1.0-bath single-family listed at $90k.
• At list price, monthly cash flow is $-320 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $33k (62.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $58k (36.0% below list).
• It's been on market 47 days — a 3% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $33k (62.9% below list) — sets the bar for cash-flow.
• In year one you build about $10k of equity ($622 loan paydown + $9k appreciation (10.0% local appreciation)).
• Location reads 74/100 on livability (#247 in IA, #4,738 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F.
• Bcluw Community School District (rural): math 60% / reading 70% proficiency, ranked #192 of 289 in IA (top 66%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bcluw Elementary School (math 72% / reading 67%, grade A-, #224 of 616 statewide, top 42%, 179 students, 47% FRL); Bcluw Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 150 students, 43% FRL); Bcluw High School (math 62% / reading 72%, grade B, #192 of 336 statewide, top 59%, 177 students, 31% FRL).
• Watch-outs: HOA is 35% of rent.
• Market conditions: 54 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 14 units permitted in Grundy County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 6y 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.
• By year 4, paydown + projected appreciation supports a ~$34k 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 47 days. Have you received any prior offers? Is the seller open to a 63% concession, seller financing, or rate buy-down credit?
• Built in 1972 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.