134 Main St

Rowan, IA 50470

$6,500C-

4 bd · 1.5 ba · 1,689 sqft · Built 1914 · SingleFamily · Pending · 116 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,247/mo
• Mortgage (P&I): −$34
• Tax + insurance: −$19
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $932/mo
• Annual: $11,185/yr
• Cap rate: 178.37%
• Cash-on-cash: 614.55%
• DSCR: 28.34
• 1% rule: 19.19%
• Cash to close: $1,820

Investor read

• This is a 4-bed/1.5-bath single-family listed at $6k.
• At list price, monthly cash flow is $932 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $6k).
• It's been on market 116 days — a 9% lower offer ($6k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $6k (9.0% below list) — sets the bar for market timing.
• In year one you build about $138 of equity ($45 loan paydown + $93 appreciation (1.4% local appreciation)).
• Location reads 61/100 on livability (#783 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D+, amenities F.
• Belmond-Klemme Community School District (rural): math 60% / reading 67% proficiency, ranked #212 of 289 in IA (top 73%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Richard O. Jacobson Elementary School (math 67% / reading 62%, grade B, #317 of 616 statewide, top 58%, 362 students, 55% FRL); Belmond-Klemme Community Jr-Sr High School (math 56% / reading 71%, grade B-, #239 of 336 statewide, top 71%, 328 students, 49% FRL).
• Watch-outs: property tax is 3.0% of price; built in 1914 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 23 units permitted in Wright County in 2024 (10 in 5+ unit buildings).
• Wright County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 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.
• At projected returns (1.4% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 116 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1914 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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?
• 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.