405 S Webster St · Ottumwa, IA 52501

$29,000

2 bd · 1.0 ba · 894 sqft · SingleFamily public records · 1 Days on market

Built 1910 6,970 sqft lot

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +15.0/30.0
• ARV discount +7.5/15.0
• 1% rule +5.0/10.0
• DSCR +5.0/10.0
• Schools +4.3/10.0
• Livability +4.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

This home needs some cleaning and fixing but has a lot of potential. 2-car garage and mother-in-law home in the rear make it unique The property is selling AS-IS.

Key facts

• Mother-in-law home
• 2-car garage
• 6,970 sq ft lot

Tags

• 2-CAR GARAGE
• MOTHER-IN-LAW HOME

Property features AI

Exterior

• Parking: Detached 2-car garage
• Utilities: Public water; Public sewer
• Home design: Single-family residence; Residential property
• Construction: Wood siding
• Exterior features: Lot approximately 0.16 acres (53 x 131)

Interior

• Bathrooms: One full bathroom; One half bathroom
• Heating & cooling: Forced air heating; No central cooling
• Interior features: Basement present

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $29k.

Deal economics

• At list price, monthly cash flow is $781 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $29k).
• Cap rate 38.6% vs local median 5.6% in Ottumwa — 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.

Location & tenants

• Location reads 80/100 on livability (#91 in IA, #1,900 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D-, employment D-.
• Ottumwa Community School District (town): math 50% / reading 54% proficiency, ranked #277 of 289 in IA (top 96%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 192 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 44 units permitted in Wapello County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $200 of loan paydown is wiped out by about $870 of value loss. Plan a longer hold.
• Wapello County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 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.

Risks & watch-outs

• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $29,000

Questions for the listing agent

1. Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
4. 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?
5. 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.
6. 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.
7. 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.

Investment metrics

• 1% rule: 4.33% ✓
• Cap rate: 38.61%
• Cash-on-cash: 115.43%
• DSCR: 6.14
• GRM: 1.9

CMA / ARV

• ARV (on-the-fly): $109,068
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
430 S Pocahontas St	0.18mi	3/1.0 (+1)	950 (+6%)	1mo	$75,000	$79	76
422 W Finley Ave	0.31mi	2/1.0	832 (-7%)	1mo	$125,000	$150	73
711 Elma St	0.65mi	2/1.0	872 (-2%)	1mo	$78,500	$90	64
546 Minnesota St	0.21mi	3/1.0 (+1)	994 (+11%)	4mo	$72,000	$72	63
134 Minnesota St	0.17mi	3/1.0 (+1)	1,015 (+14%)	3mo	$100,000	$99	62
513 S Sheridan Ave	0.66mi	2/1.0	867 (-3%)	3mo	$50,000	$58	62
1513 W Finley Ave	0.63mi	2/1.0	940 (+5%)	2mo	$115,000	$122	60
419 S Pocahontas St	0.19mi	3/2.0 (+1)	1,008 (+13%)	5mo	$144,000	$143	56
425 S Davis St	0.56mi	3/1.0 (+1)	816 (-9%)	0mo	$164,000	$201	54
312 S Moore St	0.61mi	2/1.0	812 (-9%)	5mo	$59,500	$73	52
321 Hackworth St	0.62mi	3/1.0 (+1)	988 (+10%)	2mo	$121,000	$122	47
559 S Moore St	0.71mi	2/1.0	800 (-10%)	5mo	$115,000	$144	45

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: —
• Equity multiple: 6.55×
• Total profit: $45,076
• Equity at exit: $4,324

10-year hold

• IRR: —
• Equity multiple: 13.74×
• Total profit: $103,416
• Equity at exit: $2,507

Cash invested: $8,120 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 52501

• Active inventory: 192
• Price-to-rent: 1.9×

Monthly cashflow live

• Estimated rent: $1,257 medium
• Mortgage (P&I): −$152
• Tax from tax record: −$48 /mo · $570/yr
• Insurance: −$12
• HOA: −$0
• Vacancy / Maint / Mgmt: −$264
• Net cashflow: $781

Break-even live

Break-even rent $268

Max offer price $29,000

Occupancy floor 33%

Sensitivity live

Price	-10% $798	-5% $789	+0% $781	+5% $773	+10% $765
Rent	-10% $682	-5% $731	+0% $781	+5% $831	+10% $880
Rate	-1.0pp $796	-0.5pp $788	base $781	+0.5pp $774	+1.0pp $766

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $7,250
• Closing costs: $870
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
420 Minneopa Ave Unit 203 Ottumwa, IA	2.0	1.0	700	$1,150	$1.64	45d	1	0.96mi
420 Minneopa Ave Unit 204 Ottumwa, IA	2.0	1.0	800	$1,350	$1.69	45d	1	0.96mi

Listing history 3 events

1. 2026-06-12
   status $29,000 Pending 1 DOM
2. 2026-06-09
   remarks 163-char remark
3. 2026-06-09
   listed $29,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $570 · $48/mo
• Projected year-2 tax: $570 · $48/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥106°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,080
• − Mortgage interest: −$1,624
• − Property taxes: −$570
• − Insurance: −$145
• − Repairs & maintenance: −$1,206
• − Management: −$1,206
• − Depreciation: −$844
• Taxable income: $9,484
• Est. tax owed @ 24.0%: −$2,276
• After-tax cash flow: $7,097/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Ottumwa Community School District
• NCES district ID: 1922110
• Math proficiency: 50% ▼ -9.00%
• Reading proficiency: 54% ▲ 1.00%
• Median HH income: $39,864
• Composite: 43.46/100
• National rank: #3004
• State rank: #277 of 289 in IA

Livability — Ottumwa

• Score: 80/100
• State rank: #91
• US rank: #1900

Category grades

Amenities C Commute A Cost of living A+ Crime D- Employment D- Housing A+ Health & safety A+ User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ottumwa, IA
• Population (ZIP): 30,341

Population outlook (Wapello County) Hauer SSP2

• Today (2025): 35,472 people
• By 2030: 35,563 · +0.3%
• By 2040: 36,083 · +1.7%
• By 2050: 37,287 · +5.1%
• By 2075: 43,898 · +23.8%
• By 2100: 52,973 · +49.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Hispanic / Latino 14% Two or more races 7% Black 4% Pacific Islander 2% Asian 2%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Iranian 4% Italian 1% Slovak 1%
• Foreign-born: 11% · Canada
• Languages at home: 84% English-only · Spanish 10% Other Asian/Pacific 3% Tagalog/Filipino 1%

Political lean MEDSL · Wapello

• 2024 margin: Solid R (+31.4) · D 33.6% · R 65.0% · Other 1.4%
• 2008→2024 swing: -45.0pp toward R · 2008: 13.5pp · 2024: -31.4pp
• All cycles: 2024: R+31.4 2020: R+23.6 2016: R+20.8 2012: D+11.8 2008: D+13.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -94.66%
• Current HPI: 174.6021
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+2800.0% since first listed

3 events — show timeline

• 2026-06-09 Listed $29,000 IAR
• 2025-06-07 Rental Removed $1,000 TURBOTENANT
• 2025-05-14 Listed for Rent $1,000 TURBOTENANT

Property tax history

-4.9%/yr

Latest (2025): $570 · +6.3% YoY. Source: county tax records.