1804 N 2nd Ave

Denison, IA 51442

$38,013B

2 bd · 1.0 ba · 840 sqft · Built 1948 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $859/mo
• Mortgage (P&I): −$199
• Tax + insurance: −$155
• HOA: −$0
• Vac / Maint / Mgmt: −$180
• Net cashflow: $324/mo
• Annual: $3,889/yr
• Cap rate: 16.52%
• Cash-on-cash: 36.54%
• DSCR: 2.63
• 1% rule: 2.26%
• Cash to close: $10,644

Investor read

• This is a 2-bed/1.0-bath single-family listed at $38k.
• At list price, monthly cash flow is $324 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($859 rent vs $38k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $263 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#103 in IA, #2,053 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Denison Community School District (town): math 61% / reading 64% proficiency, ranked #224 of 289 in IA (top 78%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 62% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Denison Elementary School (math 47% / reading 32%, grade F, #579 of 616 statewide, top 95%, 676 students, 60% FRL); Denison Middle School (math 63% / reading 70%, grade A-, #148 of 246 statewide, top 61%, 502 students, 66% FRL); Denison High School (math 59% / reading 69%, grade B-, #235 of 336 statewide, top 71%, 786 students, 59% FRL) — zoned schools at 62% FRL track the district average.
• Watch-outs: property tax is 4.4% of price; built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 50 active listings in the ZIP; 18 units permitted in Crawford County in 2024 (0 in 5+ unit buildings).
• Crawford County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 9y ago 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 (-3.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 16.5% vs local median 3.5% in Denison — 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.

Questions for listing agent

• Built in 1948 — 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?
• 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.