406 Highland Street St

Olin, IA 52320

$12,500C-

2 bd · 1.0 ba · 1,094 sqft · Built 1900 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $974/mo
• Mortgage (P&I): −$66
• Tax + insurance: −$10
• HOA: −$0
• Vac / Maint / Mgmt: −$205
• Net cashflow: $694/mo
• Annual: $8,331/yr
• Cap rate: 72.94%
• Cash-on-cash: 238.04%
• DSCR: 11.59
• 1% rule: 7.79%
• Cash to close: $3,500

Investor read

• This is a 2-bed/1.0-bath single-family listed at $12k.
• At list price, monthly cash flow is $694 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($974 rent vs $12k).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $802 of equity ($86 loan paydown + $716 appreciation (5.7% local appreciation)).
• Location reads 62/100 on livability (#721 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime C-, employment D+, amenities F.
• Olin Consolidated School District (rural): math 60% / reading 40% proficiency, ranked #320 of 330 in IA (top 97%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Olin Elementary School (math 44% / reading 34%, grade F, #579 of 616 statewide, top 95%, 92 students, 50% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 25 units permitted in Jones County in 2024 (0 in 5+ unit buildings).
• Jones County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (5.7% appreciation + 3.0% rent growth), your $4k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• 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.
• 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.