4004 2nd Ave · Des Moines, IA 50313

$118,000

2 bd · 1.0 ba · 696 sqft · SingleFamily public records · 29 Days on market

Built 1923 6,350 sqft lot $170/sqft · 17% below area Est $141k · 17% under

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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).

• ARV discount +14.9/15.0
• Cash flow +7.9/30.0
• Rent growth +5.0/5.0
• Livability +4.0/5.0
• Schools +3.8/10.0
• Condition / age +2.5/5.0
• 1% rule +2.4/10.0
• DSCR +1.9/10.0
• Appreciation +0.0/10.0

Listing remarks

Affordable 2 bed, 1 bath home with great potential! This home offers a functional layout with a spacious living area, dedicated dining space, and an updated kitchen with modern finishes and stainless appliances. Fresh, neutral interior makes it easy to move right in or add your own touches over time. Full basement provides excellent storage. Enjoy a large yard with plenty of room for outdoor space, parking, or future improvements. Ideal opportunity for a first-time buyer or investor looking for a solid rental. Convenient location with easy access to major routes, shopping, and amenities.

Key facts

• Spacious living area
• Large yard
• Full basement

Tags

• FUNCTIONAL LAYOUT
• SPACIOUS LIVING AREA
• DEDICATED DINING SPACE
• UPDATED KITCHEN
• FULL BASEMENT
• LARGE YARD

Property features AI

Finance

• Financial info: Annual tax amount reported

Exterior

• Utilities: Public water; Public sewer
• Home design: Single-family property
• Construction: Metal siding exterior; Asphalt shingle roof; Block foundation; Built on a 0.146-acre lot (approx. 50 x 127)
• Exterior features: Concrete road frontage; Residential zoning

Interior

• Kitchen: Stove; Refrigerator
• Bedrooms: 2 main-level bedrooms
• Bathrooms: 1 full bathroom
• Heating & cooling: Forced air heating; Natural gas
• Interior features: Unfinished basement
• Laundry & utility: Dryer

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $118k.

Deal economics

• At list price, monthly cash flow is $-127 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $96k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $87k (26.1% below list).
• Recommended offer: $87k (26.1% below list) — sets the bar for 1% rule.
• Cap rate 5.0% vs local median 3.1% in Des Moines — 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 81/100 on livability (#63 in IA, #1,432 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: employment C-, schools D+, crime F.
• Des Moines Independent Community School District (urban): math 43% / reading 46% proficiency, ranked #289 of 289 in IA (top 100%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 63% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: Rents rising fast (+13.1%/yr); 154 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).
• This rent is only 15% of the median local income ($68k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $816 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 29 days — a 2% lower offer ($116k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $87,238 (26.1% below list)

Questions for the listing agent

1. 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?
2. Built in 1923 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. Crime grade is F 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?
6. 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?
7. 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.
8. 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.
9. 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: 0.74% ✗
• Cap rate: 5.00%
• Cash-on-cash: -4.62%
• DSCR: 0.79
• GRM: 11.3

CMA / ARV

• ARV (median comp): $141,383
• List price: $118,000
• Delta: -16.54%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
4117 5th Ave	0.22mi	2/1.0	667 (-4%)	0mo	$148,000	$222	82
4013 8th St	0.35mi	2/1.0	682 (-2%)	1mo	$154,900	$227	79
3938 1st St	0.08mi	2/1.0	768 (+10%)	3mo	$174,000	$227	77
4012 7th St	0.31mi	2/2.0	734 (+6%)	0mo	$165,000	$225	72
3701 Amherst St	0.57mi	2/1.0	704 (+1%)	1mo	$118,500	$168	71
3906 Cornell St	0.28mi	2/1.0	768 (+10%)	1mo	$85,000	$111	69
511 Ovid Ave	0.55mi	2/1.0	736 (+6%)	0mo	$152,500	$207	65
3914 E 8th St	0.60mi	2/1.5	744 (+7%)	1mo	$175,000	$235	58
921 Madison Ave	0.54mi	2/1.0	780 (+12%)	1mo	$192,400	$247	54
3917 8th St	0.37mi	3/2.0 (+1)	594 (-15%)	1mo	$164,900	$278	49
3913 10th St	0.55mi	2/1.0	795 (+14%)	2mo	$85,000	$107	49
616 E Ovid Ave	0.70mi	2/1.0	780 (+12%)	1mo	$185,000	$237	46

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 · 8.0% rent growth · sell at horizon

5-year hold

• IRR: -18.7%
• Equity multiple: 0.32×
• Total profit: $-22,594
• Equity at exit: $17,594

10-year hold

• IRR: -3.4%
• Equity multiple: 0.73×
• Total profit: $-9,061
• Equity at exit: $10,202

Cash invested: $33,040 (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 50313

• Rents YoY: 13.1%
• Active inventory: 154
• Price-to-rent: 11.3×

Monthly cashflow live

• Estimated rent: $872 high
• Mortgage (P&I): −$619
• Tax from tax record: −$148 /mo · $1,780/yr
• Insurance: −$49
• HOA: −$0
• Vacancy / Maint / Mgmt: −$183
• Net cashflow: $-127

Break-even live

Break-even rent $1,033

Max offer price $95,543

Occupancy floor —

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: $29,500
• Closing costs: $3,540
• Reserves months: —
• Total cash needed: —

Rent comps 10 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3623 Cambridge St Des Moines, IA	2.0	1.0	732	$1,145	$1.56	19d	1	0.37mi
3905 8th St Des Moines, IA	1.0	1.0	675	$895	$1.33	23d	1	0.37mi
3419 1st St Unit 2 Des Moines, IA	1.0	1.0	546	$650	$1.19	43d	1	0.45mi
1108 E Seneca Ave Apt 5 Des Moines, IA	1.0	1.0	680	$647	$0.95	23d	1	0.79mi
1108 E Seneca Ave Apt 1 Des Moines, IA	1.0	1.0	680	$647	$0.95	43d	1	0.80mi
1124 E Seneca Ave Apt 8 Des Moines, IA	1.0	1.0	550	$597	$1.09	43d	1	0.82mi
1124 E Seneca Ave Apt 6 Des Moines, IA	1.0	1.0	550	$597	$1.09	23d	1	0.82mi
3315 E 15th St Des Moines, IA	1.0	1.0	610	$785	$1.29	21d	2	1.30mi
2303 E 9th St Des Moines, IA	1.0	1.0	500	$675	$1.35	43d	1	1.42mi
2342 E 13th St Unit C Des Moines, IA	1.0	1.0	450	$700	$1.56	43d	1	1.43mi

Listing history 1 events

1. 2026-04-23
   listed $118,000 Active 594-char remark

ⓘ 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: $1,780 · $148/mo
• Projected year-2 tax: $1,816 · $151/mo
• Expected delta: +$36/yr (+$3/mo · 2.0%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥103°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,469
• − Mortgage interest: −$6,610
• − Property taxes: −$1,780
• − Insurance: −$590
• − Repairs & maintenance: −$837
• − Management: −$837
• − Depreciation: −$3,433
• Taxable loss: −$3,619
• Est. tax savings @ 24.0%: +$869
• After-tax cash flow: $-657/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: Des Moines Independent Community School District
• NCES district ID: 1908970
• Math proficiency: 43% ▼ -6.00%
• Reading proficiency: 46% ▼ -1.00%
• Median HH income: $45,905
• Composite: 37.83/100
• National rank: #4331
• State rank: #289 of 289 in IA

Livability — Des Moines

• Score: 81/100
• State rank: #63
• US rank: #1432

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Des Moines, IA
• County: Polk County · 453,298 people
• City population: 203,612
• Metro: Des Moines-West Des Moines, IA
• Population (ZIP): 17,440
• Household income: $68,361
• Rent vs Own: 23.1% rent · 76.9% own
• Severe rent burden: 454.0

Population outlook (Polk County) Hauer SSP2

• Today (2025): 548,042 people
• By 2030: 588,557 · +7.4%
• By 2040: 670,629 · +22.4%
• By 2050: 752,830 · +37.4%
• By 2075: 955,069 · +74.3%
• By 2100: 1,115,436 · +103.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.58)
• Race & ethnicity: White 61% Hispanic / Latino 17% Black 11% Two or more races 8% Asian 6%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Iranian 3% Portuguese 2% Scotch-Irish 2%
• Foreign-born: 16% · Canada, Philippines, Vietnam
• Languages at home: 75% English-only · Spanish 14% Other Asian/Pacific 4% Russian/Polish/Slavic 1%

Political lean MEDSL · Polk

• 2024 margin: D (+10.9) · D 54.8% · R 43.9% · Other 1.3%
• 2008→2024 swing: -3.7pp toward R · 2008: 14.6pp · 2024: 10.9pp
• All cycles: 2024: D+10.9 2020: D+15.2 2016: D+11.5 2012: D+14.2 2008: D+14.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -162.17%
• Current HPI: 285.5708
• Rent YoY: ▲ 13.11%
• Metro: Des Moines-West Des Moines, IA
• 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

2 events — show timeline

• 2026-05-22 Pending — DMMLS
• 2026-04-23 Listed $118,000 DMMLS

Property tax history

+4.4%/yr

Latest (2025): $1,780 · +2.1% YoY. Source: county tax records.