508 18th St

Spirit Lake, IA 51360

$87,000B

3 bd · 1.0 ba · 982 sqft · Built 1920 · SingleFamily · Active · 138 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,825/mo
• Mortgage (P&I): −$456
• Tax + insurance: −$115
• HOA: −$0
• Vac / Maint / Mgmt: −$383
• Net cashflow: $871/mo
• Annual: $10,447/yr
• Cap rate: 18.30%
• Cash-on-cash: 42.89%
• DSCR: 2.91
• 1% rule: 2.10%
• Cash to close: $24,360

Investor read

• This is a 3-bed/1.0-bath single-family listed at $87k. Condition is rated fair.
• At list price, monthly cash flow is $871 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $87k).
• It's been on market 138 days — a 12% lower offer ($77k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $601 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#69 in IA, #1,522 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Spirit Lake Community School District (town): math 73% / reading 78% proficiency, ranked #59 of 289 in IA (top 20%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Spirit Lake Elementary School (math 77% / reading 67%, grade A-, #181 of 616 statewide, top 34%, 537 students, 28% FRL); Spirit Lake Middle School (math 70% / reading 75%, grade A, #90 of 246 statewide, top 38%, 358 students, 24% FRL); Spirit Lake High School (math 77% / reading 87%, grade A, #20 of 336 statewide, top 7%, 409 students, 23% FRL) — zoned schools at 25% FRL track the district average.
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 201 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 295 units permitted in Dickinson County in 2024 (16 in 5+ unit buildings).
• Dickinson County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 18.3% vs local median 1.6% in Spirit Lake — 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

• It's been on market 138 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: siding — Severe weathering and peeling paint.
• Moderate: roof — Aged appearance, potential for leaks.
• Major: bathroom fixtures — Bathtub and toilet in poor condition.
• Major: kitchen cabinets — Outdated and worn-out appearance.
• Major: landscaping — Overgrown yard and lack of landscaping.