2842 285 Ave

Hopkinton, IA 52237

$409,000D-

3 bd · 2.0 ba · 2,304 sqft · Built 2020 · SingleFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,185/mo
• Mortgage (P&I): −$2,145
• Tax + insurance: −$446
• HOA: −$0
• Vac / Maint / Mgmt: −$249
• Net cashflow: $-1,655/mo
• Annual: $-19,861/yr
• Cap rate: 1.44%
• Cash-on-cash: -17.34%
• DSCR: 0.23
• 1% rule: 0.29%
• Cash to close: $114,520

Investor read

• This is a 3-bed/2.0-bath single-family listed at $409k.
• At list price, monthly cash flow is $-2k ($-20k/yr) — negative.
• To cash-flow at today's rent, offer at most $117k (71.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $118k (71.0% below list).
• It's been on market 41 days — a 3% lower offer ($397k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (71.5% below list) — sets the bar for cash-flow.
• In year one you build about $22k of equity ($3k loan paydown + $19k appreciation (4.7% local appreciation)).
• Location reads 71/100 on livability (#334 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Maquoketa Valley Community School District (rural): math 79% / reading 83% proficiency, ranked #27 of 289 in IA (top 9%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Delhi Elementary School (math 82% / reading 77%, grade A, #71 of 616 statewide, top 15%, 148 students, 29% FRL); Maquoketa Valley Middle School (math 82% / reading 82%, grade A+, #22 of 246 statewide, top 12%, 159 students, 30% FRL); Maquoketa Valley Senior High School (math 77% / reading 92%, grade A, #14 of 336 statewide, top 4%, 191 students, 29% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: 8 active listings in the ZIP; 48 units permitted in Delaware County in 2024 (24 in 5+ unit buildings).
• Delaware County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 10y ago 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 $300k; 36% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 2, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 71% concession, seller financing, or rate buy-down credit?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.