314 7th St S

Estherville, IA 51334

$79,000C+

2 bd · 1.0 ba · 852 sqft · Built 1900 · SingleFamily · Pending · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,035/mo
• Mortgage (P&I): −$414
• Tax + insurance: −$104
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $299/mo
• Annual: $3,591/yr
• Cap rate: 10.84%
• Cash-on-cash: 16.24%
• DSCR: 1.72
• 1% rule: 1.31%
• Cash to close: $22,120

Investor read

• This is a 2-bed/1.0-bath single-family listed at $79k.
• At list price, monthly cash flow is $299 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $79k).
• It's been on market 60 days — a 3% lower offer ($77k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $77k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $546 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#174 in IA, #3,136 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D-, commute F.
• Estherville Lincoln Central Community School District (town): math 57% / reading 67% proficiency, ranked #229 of 289 in IA (top 79%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Demoney Elementary (math 57% / reading 57%, grade C+, #436 of 616 statewide, top 74%, 493 students, 55% FRL); Estherville Lincoln Central Middle School (math 57% / reading 61%, grade B, #193 of 246 statewide, top 78%, 312 students, 53% FRL); Estherville Lincoln Central High School (math 57% / reading 78%, grade B, #186 of 336 statewide, top 57%, 384 students, 47% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 45 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 11 units permitted in Emmet County in 2024 (0 in 5+ unit buildings).
• Emmet County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~8 years — after that, you're playing with house money.
• Cap rate 10.8% vs local median 5.1% in Estherville — 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

• It's been on market 60 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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.
• 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.