125 Jackson St W

Winthrop, IA 50682

$39,500B+

4 bd · 1.5 ba · 1,744 sqft · Built 1870 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,135/mo
• Mortgage (P&I): −$207
• Tax + insurance: −$120
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $570/mo
• Annual: $6,836/yr
• Cap rate: 23.60%
• Cash-on-cash: 61.81%
• DSCR: 3.75
• 1% rule: 2.87%
• Cash to close: $11,060

Investor read

• This is a 4-bed/1.5-bath single-family listed at $40k.
• At list price, monthly cash flow is $570 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• It's been on market 23 days — a 2% lower offer ($39k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $39k (1.5% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($273 loan paydown + $2k appreciation (4.3% local appreciation)).
• Location reads 75/100 on livability (#226 in IA, #4,299 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• East Buchanan Community School District (rural): math 59% / reading 63% proficiency, ranked #222 of 289 in IA (top 77%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: East Buchanan Elementary School (math 57% / reading 52%, grade C, #462 of 616 statewide, top 79%, 309 students, 29% FRL); East Buchanan Middle School (math 62% / reading 67%, grade A-, #157 of 246 statewide, top 67%, 88 students, 41% FRL); East Buchanan High School (math 57% / reading 67%, grade B-, #242 of 336 statewide, top 76%, 186 students, 36% FRL).
• Watch-outs: property tax is 3.1% of price; built in 1870 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 19 units permitted in Buchanan County in 2024 (0 in 5+ unit buildings).
• Buchanan County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 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 (4.3% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1870 — 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.
• 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.
• 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.