603 7th St

Durant, IA 52747

$70,000B+

3 bd · 1.5 ba · 1,920 sqft · Built 1915 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,265/mo
• Mortgage (P&I): −$367
• Tax + insurance: −$224
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $408/mo
• Annual: $4,897/yr
• Cap rate: 13.29%
• Cash-on-cash: 24.98%
• DSCR: 2.11
• 1% rule: 1.81%
• Cash to close: $19,600

Investor read

• This is a 3-bed/1.5-bath single-family listed at $70k.
• At list price, monthly cash flow is $408 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($484 loan paydown + $1k appreciation (1.8% local appreciation)).
• Location reads 82/100 on livability (#44 in IA, #1,124 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Durant Community School District (rural): math 66% / reading 70% proficiency, ranked #156 of 289 in IA (top 54%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Durant Elementary School (math 72% / reading 77%, grade A, #131 of 616 statewide, top 27%, 343 students, 29% FRL); Durant Junior/Senior High School (math 63% / reading 67%, grade B, #208 of 336 statewide, top 62%, 340 students, 32% FRL).
• Watch-outs: property tax is 3.3% of price; built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 89 units permitted in Cedar County in 2024 (40 in 5+ unit buildings).
• Cedar County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $50k; 40% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.8% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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.