5247 Dakota Dr

West Des Moines, IA 50265

$138,900D+

3 bd · 1.5 ba · 1,008 sqft · Built 1984 · Townhouse · Active · 137 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,535/mo
• Mortgage (P&I): −$728
• Tax + insurance: −$218
• HOA: −$300
• Vac / Maint / Mgmt: −$322
• Net cashflow: $-34/mo
• Annual: $-409/yr
• Cap rate: 6.00%
• Cash-on-cash: -1.05%
• DSCR: 0.95
• 1% rule: 1.10%
• Cash to close: $38,892

Investor read

• This is a 3-bed/1.5-bath townhouse listed at $139k.
• At list price, monthly cash flow is $-34 ($-409/yr) — negative.
• To cash-flow at today's rent, offer at most $133k (4.3% below list).
• Meets the 1% rule at list price ($2k rent vs $139k).
• It's been on market 137 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $960 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 87/100 on livability (#11 in IA, #336 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• West Des Moines Community School District (urban): math 66% / reading 71% proficiency, ranked #133 of 289 in IA (top 46%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Crossroads Park Elementary School (math 72% / reading 72%, grade A-, #181 of 616 statewide, top 34%, 521 students, 33% FRL); Indian Hills Junior High School (math 65% / reading 72%, grade A, #126 of 246 statewide, top 53%, 696 students, 45% FRL); Valley High School (math 71% / reading 81%, grade A-, #75 of 336 statewide, top 23%, 2,152 students, 36% FRL).
• Market conditions: Rents soft (-0.2%/yr); 297 active listings in the ZIP; 23 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 11y ago; this cycle's ask has dropped $11k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $85k; list at $139k implies a 63% gain — meaningful room to come down on a strong offer.
• Cap rate 6.0% vs local median 2.5% in West Des Moines — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 137 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.