405 Babson St

Blockton, IA 50836

$8,800C-

3 bd · 1.0 ba · 1,100 sqft · Built 1900 · SingleFamily · Pending · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $949/mo
• Mortgage (P&I): −$46
• Tax + insurance: −$15
• HOA: −$0
• Vac / Maint / Mgmt: −$199
• Net cashflow: $689/mo
• Annual: $8,265/yr
• Cap rate: 100.21%
• Cash-on-cash: 335.44%
• DSCR: 15.92
• 1% rule: 10.78%
• Cash to close: $2,464

Investor read

• This is a 3-bed/1.0-bath single-family listed at $9k.
• At list price, monthly cash flow is $689 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($949 rent vs $9k).
• It's been on market 31 days — a 3% lower offer ($9k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $9k (3.0% below list) — sets the bar for market timing.
• In year one you build about $325 of equity ($61 loan paydown + $264 appreciation (3.0% local appreciation)).
• Location reads 57/100 on livability (#907 in IA) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: crime C-, schools D-, amenities F.
• Bedford Community School District (rural): math 81% / reading 85% proficiency, ranked #23 of 289 in IA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 4 units permitted in Taylor County in 2024 (0 in 5+ unit buildings).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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.
• 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.