106 2nd Ave

Holland, IA 50642

$98,500C+

2 bd · 1.5 ba · 842 sqft · Built 1951 · SingleFamily · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $956/mo
• Mortgage (P&I): −$517
• Tax + insurance: −$92
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $147/mo
• Annual: $1,764/yr
• Cap rate: 8.08%
• Cash-on-cash: 6.40%
• DSCR: 1.28
• 1% rule: 0.97%
• Cash to close: $27,580

Investor read

• This is a 2-bed/1.5-bath single-family listed at $98k.
• At list price, monthly cash flow is $147 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $96k (2.9% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $96k (2.9% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($681 loan paydown + $4k appreciation (3.7% local appreciation)).
• Location reads 65/100 on livability (#577 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Grundy Center Community School District (rural): math 80% / reading 85% proficiency, ranked #17 of 289 in IA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Grundy Center Elementary School (math 82% / reading 77%, grade A, #71 of 616 statewide, top 15%, 277 students, 34% FRL); Grundy Center Middle School (math 80% / reading 87%, grade A+, #11 of 246 statewide, top 4%, 212 students, 21% FRL); Grundy Center High School (math 77% / reading 87%, grade A, #20 of 336 statewide, top 7%, 235 students, 28% FRL).
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 14 units permitted in Grundy County in 2024 (0 in 5+ unit buildings).
• At projected returns (3.7% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1951 — 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 D-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.