2 E Main St

New Hampton, IA 50659

$135,000C-

1 bd · 3.0 ba · 3,080 sqft · Built 1900 · SingleFamily · Pending · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $986/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $-154/mo
• Annual: $-1,853/yr
• Cap rate: 4.92%
• Cash-on-cash: -4.90%
• DSCR: 0.78
• 1% rule: 0.73%
• Cash to close: $37,800

Investor read

• This is a 1-bed/3.0-bath single-family listed at $135k.
• At list price, monthly cash flow is $-154 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $113k (16.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $99k (27.0% below list).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $99k (27.0% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($933 loan paydown + $14k appreciation (10.0% local appreciation)).
• Location reads 78/100 on livability (#147 in IA, #2,653 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• New Hampton Community School District (town): math 76% / reading 73% proficiency, ranked #84 of 289 in IA (top 29%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: New Hampton Elementary School (math 67% / reading 52%, grade B-, #390 of 616 statewide, top 69%, 401 students, 33% FRL); New Hampton Middle School (math 83% / reading 76%, grade A+, #35 of 246 statewide, top 16%, 279 students, 34% FRL); New Hampton High School (math 75% / reading 79%, grade A-, #60 of 336 statewide, top 21%, 339 students, 28% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 29 active listings in the ZIP; 6 units permitted in Chickasaw County in 2024 (0 in 5+ unit buildings).
• Chickasaw County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$37k 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?
• 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.
• 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?
• 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.