605 Lincoln St

Wellsburg, IA 50680

$129,900D

3 bd · 1.0 ba · 1,325 sqft · Built 1930 · SingleFamily · Active · 93 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $865/mo
• Mortgage (P&I): −$681
• Tax + insurance: −$121
• HOA: −$0
• Vac / Maint / Mgmt: −$182
• Net cashflow: $-119/mo
• Annual: $-1,432/yr
• Cap rate: 5.19%
• Cash-on-cash: -3.94%
• DSCR: 0.82
• 1% rule: 0.67%
• Cash to close: $36,372

Investor read

• This is a 3-bed/1.0-bath single-family listed at $130k.
• At list price, monthly cash flow is $-119 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $109k (16.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $86k (33.4% below list).
• It's been on market 93 days — a 9% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $86k (33.4% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($898 loan paydown + $3k appreciation (2.4% local appreciation)).
• Location reads 70/100 on livability (#359 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Agwsr Community School District (rural): math 60% / reading 69% proficiency, ranked #198 of 289 in IA (top 68%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Agwsr Elementary School (math 62% / reading 57%, grade B-, #390 of 616 statewide, top 69%, 191 students, 38% FRL); Agwsr Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 161 students, 41% FRL); Agwsr High School (math 67% / reading 77%, grade B+, #117 of 336 statewide, top 39%, 192 students, 35% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 19 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 14 units permitted in Grundy County in 2024 (0 in 5+ unit buildings).
• 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.
• By year 9, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• 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?
• It's been on market 93 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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?
• 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?
• 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.