5511 N Linwood Ave #5509

Davenport, IA 52806

$198,000C

None bd · 2.0 ba · 2,124 sqft · Built 1979 · MultiFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,375/mo
• Mortgage (P&I): −$1,038
• Tax + insurance: −$330
• HOA: −$0
• Vac / Maint / Mgmt: −$499
• Net cashflow: $508/mo
• Annual: $6,095/yr
• Cap rate: 9.37%
• Cash-on-cash: 10.99%
• DSCR: 1.49
• 1% rule: 1.20%
• Cash to close: $55,440

Investor read

• This is a ?-bed/2.0-bath multifamily listed at $198k. Condition is rated good.
• At list price, monthly cash flow is $508 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $198k).
• It's been on market 18 days — a 2% lower offer ($195k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $195k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#126 in IA, #2,312 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime F.
• Davenport Community School District (urban): math 43% / reading 50% proficiency, ranked #288 of 289 in IA (top 100%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Truman Elementary School (math 42% / reading 42%, grade F, #563 of 616 statewide, top 93%, 348 students, 45% FRL); Wood Intermediate (math 44% / reading 52%, grade C-, #224 of 246 statewide, top 91%, 438 students, 61% FRL); North High School (math 45% / reading 59%, grade D+, #299 of 336 statewide, top 91%, 1,352 students, 50% FRL) — zoned schools at 52% FRL track the district average.
• Market conditions: Rents rising (+1.8%/yr); 162 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 805 units permitted in Scott County in 2024 (479 in 5+ unit buildings).
• Scott County population projected at +19% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 9.4% vs local median 4.4% in Davenport — 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.
• This rent runs 38% of the median local income ($74k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1979 — 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.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.