308 Summit St

Wall Lake, IA 51466

$235,000D

4 bd · 1.5 ba · 2,270 sqft · Built 1910 · SingleFamily · Active · 185 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,252/mo
• Mortgage (P&I): −$1,232
• Tax + insurance: −$309
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $-552/mo
• Annual: $-6,626/yr
• Cap rate: 3.47%
• Cash-on-cash: -10.07%
• DSCR: 0.55
• 1% rule: 0.53%
• Cash to close: $65,800

Investor read

• This is a 4-bed/1.5-bath single-family listed at $235k.
• At list price, monthly cash flow is $-552 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (41.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (46.7% below list).
• It's been on market 185 days — a 12% lower offer ($207k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (46.7% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($2k loan paydown + $7k appreciation (3.1% local appreciation)).
• Location reads 74/100 on livability (#244 in IA, #4,709 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• East Sac County Community School District (rural): math 60% / reading 68% proficiency, ranked #211 of 289 in IA (top 73%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 6 active listings in the ZIP; 6 units permitted in Sac County in 2024 (0 in 5+ unit buildings).
• Sac County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $125k; list at $235k implies a 88% gain — meaningful room to come down on a strong offer.
• By year 5, paydown + projected appreciation supports a ~$38k 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 185 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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.