1410 E Ridge Dr

Holiday Lake, IA 52211

$215,000D-

1 bd · 1.0 ba · 925 sqft · Built 2009 · SingleFamily · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $862/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$235
• HOA: −$55
• Vac / Maint / Mgmt: −$181
• Net cashflow: $-736/mo
• Annual: $-8,836/yr
• Cap rate: 2.18%
• Cash-on-cash: -14.68%
• DSCR: 0.35
• 1% rule: 0.40%
• Cash to close: $60,200

Investor read

• This is a 1-bed/1.0-bath single-family listed at $215k.
• At list price, monthly cash flow is $-736 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $85k (60.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $86k (59.9% below list).
• It's been on market 81 days — a 6% lower offer ($202k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $85k (60.5% below list) — sets the bar for cash-flow.
• In year one you build about $20k of equity ($1k loan paydown + $18k appreciation (8.6% local appreciation)).
• Location reads 66/100 on livability (#524 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D, amenities F, commute F.
• Brooklyn-Guernsey-Malcom Community School District (rural): math 72% / reading 74% proficiency, ranked #101 of 289 in IA (top 35%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 57 active listings in the ZIP; 27 units permitted in Poweshiek County in 2024 (0 in 5+ unit buildings).
• Poweshiek County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 4 sale attempts since 10y ago; this cycle's ask has dropped $20k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $52k; list at $215k implies a 310% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$32k 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?
• It's been on market 81 days. Have you received any prior offers? Is the seller open to a 61% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.