1106 Adams St

Hamburg, IA 51640

$19,000C

1 bd · 1.0 ba · 1,016 sqft · Built 1920 · SingleFamily · Active · 185 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $922/mo
• Mortgage (P&I): −$100
• Tax + insurance: −$443
• HOA: −$0
• Vac / Maint / Mgmt: −$194
• Net cashflow: $185/mo
• Annual: $2,220/yr
• Cap rate: 44.92%
• Cash-on-cash: 137.94%
• DSCR: 7.14
• 1% rule: 4.85%
• Cash to close: $5,320

Investor read

• This is a 1-bed/1.0-bath single-family listed at $19k.
• At list price, monthly cash flow is $185 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($922 rent vs $19k).
• It's been on market 185 days — a 12% lower offer ($17k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $17k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($131 loan paydown + $2k appreciation (10.0% local appreciation)).
• Location reads 73/100 on livability (#288 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Hamburg Community School District (rural): math 70% / reading 70% proficiency, ranked #187 of 330 in IA (top 57%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Marnie Simons Elementary School (math 64% / reading 54%, grade B-, #390 of 616 statewide, top 69%, 99 students, 68% FRL); Hamburg Middle School (math 54% / reading 64%, grade B, #185 of 246 statewide, top 78%, 40 students, 70% FRL); Hamburg Charter High Schools (35 students, 66% FRL, charter) — zoned schools average 68% FRL vs 47% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: flood insurance adds $427/mo; built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 7 units permitted in Fremont County in 2024 (0 in 5+ unit buildings).
• Fremont County population projected at -33% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 4y ago; this cycle's ask has dropped $6k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $4k; list at $19k implies a 375% gain — meaningful room to come down on a strong offer.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 185 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 B-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.