2205 Market St

Columbus City, IA 52737

$39,330B+

3 bd · 1.5 ba · 1,248 sqft · Built 1900 · SingleFamily · Pending · 28 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,033/mo
• Mortgage (P&I): −$206
• Tax + insurance: −$94
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $516/mo
• Annual: $6,187/yr
• Cap rate: 22.03%
• Cash-on-cash: 56.19%
• DSCR: 3.50
• 1% rule: 2.63%
• Cash to close: $11,012

Investor read

• This is a 3-bed/1.5-bath single-family listed at $39k.
• At list price, monthly cash flow is $516 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $39k).
• It's been on market 28 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 $1k of equity ($272 loan paydown + $1k appreciation (3.0% local appreciation)).
• Location reads 62/100 on livability (#695 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B+; Watch: health & safety D+, schools F, amenities F.
• Columbus Community School District (rural): math 53% / reading 60% proficiency, ranked #258 of 289 in IA (top 89%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 61% free/reduced lunch — lower-income household profile, screen leases tightly.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 9 units permitted in Louisa County in 2024 (0 in 5+ unit buildings).
• Louisa County population projected at -11% 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 $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.