707 4th St

Correctionville, IA 51016

$7,800C-

4 bd · 1.0 ba · 889 sqft · Built 1890 · SingleFamily · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $985/mo
• Mortgage (P&I): −$41
• Tax + insurance: −$13
• HOA: −$0
• Vac / Maint / Mgmt: −$207
• Net cashflow: $724/mo
• Annual: $8,687/yr
• Cap rate: 117.67%
• Cash-on-cash: 397.77%
• DSCR: 18.70
• 1% rule: 12.62%
• Cash to close: $2,184

Investor read

• This is a 4-bed/1.0-bath single-family listed at $8k.
• At list price, monthly cash flow is $724 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($985 rent vs $8k).
• It's been on market 26 days — a 2% lower offer ($8k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $8k (1.5% below list) — sets the bar for market timing.
• In year one you build about $335 of equity ($54 loan paydown + $281 appreciation (3.6% local appreciation)).
• Location reads 66/100 on livability (#528 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, health & safety D, amenities F.
• River Valley Community School District (rural): math 60% / reading 63% proficiency, ranked #238 of 289 in IA (top 82%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 15 active listings in the ZIP; 170 units permitted in Woodbury County in 2024 (90 in 5+ unit buildings).
• At projected returns (3.6% appreciation + 3.0% rent growth), your $2k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1890 — 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 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.