106 N 3rd Ave · Villisca, IA 50864

$125,000

2 bd · 2.0 ba · 1,801 sqft · Other · 1 Days on market

Built 1890

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Why this score? — see what drove the C- 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 +15.2/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.9/10.0
• DSCR +4.7/10.0
• Livability +3.6/5.0
• 1% rule +3.4/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

Charming 2 bedroom home with endless possibilities. It has new plumbing and electrical. A new roof was put on five years ago and a small garage added to the rear of the home. It also has a partial unfinished basement.

Key facts

• Small garage
• New plumbing
• New electrical

Tags

• NEW PLUMBING
• NEW ELECTRICAL
• NEW ROOF
• SMALL GARAGE
• PARTIAL UNFINISHED BASEMENT

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath other listed at $125k.

Deal economics

• At list price, monthly cash flow is $43 ($516/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (15.7% below list).
• Recommended offer: $105k (15.7% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 71/100 on livability (#350 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Villisca Community School District (rural): math 58% / reading 58% proficiency, ranked #256 of 289 in IA (top 89%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 16 active listings in the ZIP; 13 units permitted in Montgomery County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $13k of equity ($864 loan paydown + $12k appreciation (10.0% local appreciation)).
• Montgomery County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

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

Risks & watch-outs

• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $105,349 (15.7% below list)

Questions for the listing agent

1. Built in 1890 — 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. 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.
4. 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.
5. 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: 0.84% ✗
• Cap rate: 6.71%
• Cash-on-cash: 1.47%
• DSCR: 1.07
• GRM: 9.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 25.3%
• Equity multiple: 3.02×
• Total profit: $70,787
• Equity at exit: $112,610

10-year hold

• IRR: 22.3%
• Equity multiple: 6.89×
• Total profit: $206,242
• Equity at exit: $242,848

Cash invested: $35,000 (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 50864

• Active inventory: 16
• Price-to-rent: 9.9×

Monthly cashflow live

• Estimated rent: $1,053 medium
• Mortgage (P&I): −$656
• Tax from tax record: −$82 /mo · $980/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$221
• Net cashflow: $43

Break-even live

Break-even rent $999

Max offer price $125,000

Occupancy floor 91%

Sensitivity live

Price	-10% $114	-5% $78	+0% $43	+5% $8	+10% $-28
Rent	-10% $-40	-5% $1	+0% $43	+5% $85	+10% $126
Rate	-1.0pp $106	-0.5pp $75	base $43	+0.5pp $11	+1.0pp $-22

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: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Listing history 1 events

1. 2026-05-26
   listed $125,000 Active

ⓘ 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: $980 · $82/mo
• Projected year-2 tax: $1,471 · $123/mo
• Expected delta: +$491/yr (+$41/mo · 50.1%)

ⓘ 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 2/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥105°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,642
• − Mortgage interest: −$7,002
• − Property taxes: −$980
• − Insurance: −$625
• − Repairs & maintenance: −$1,011
• − Management: −$1,011
• − Depreciation: −$3,636
• Taxable loss: −$1,624
• Est. tax savings @ 24.0%: +$390
• After-tax cash flow: $906/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: Villisca Community School District
• NCES district ID: 1929280
• Math proficiency: 58% ▼ -5.00%
• Reading proficiency: 58% ▲ 5.00%
• Median HH income: $42,223
• Composite: 48.68/100
• National rank: #2102
• State rank: #256 of 289 in IA

Livability — Villisca

• Score: 71/100
• State rank: #350
• US rank: #7170

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Villisca, IA
• Population (ZIP): 1,627

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 9,518 people
• By 2030: 9,116 · -4.2%
• By 2040: 8,303 · -12.8%
• By 2050: 7,595 · -20.2%
• By 2075: 6,568 · -31.0%
• By 2100: 5,800 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 2% Hispanic / Latino 1%
• Common ancestry: Serbian 3% Portuguese 2% Lithuanian 1%
• Foreign-born: 1% · Canada
• Languages at home: 97% English-only · German/W. Germanic 2% Arabic 1%

Political lean MEDSL · Montgomery

• 2024 margin: Solid R (+39.1) · D 29.8% · R 68.9% · Other 1.3%
• 2008→2024 swing: -28.5pp toward R · 2008: -10.6pp · 2024: -39.1pp
• All cycles: 2024: R+39.1 2020: R+39.0 2016: R+42.4 2012: R+21.6 2008: R+10.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 108.18%
• Current HPI: 269.67
• 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

1 event — show timeline

• 2026-05-26 Listed $125,000 FSBO.com

Property tax history

-0.9%/yr

Latest (2025): $980 · +2.3% YoY. Source: county tax records.