221 Mission St

Strawberry Point, IA 52076

$121,900D+

2 bd · 2.0 ba · 1,144 sqft · Built 1956 · SingleFamily · Pending · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $996/mo
• Mortgage (P&I): −$639
• Tax + insurance: −$142
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $5/mo
• Annual: $64/yr
• Cap rate: 6.35%
• Cash-on-cash: 0.19%
• DSCR: 1.01
• 1% rule: 0.82%
• Cash to close: $34,132

Investor read

• This is a 2-bed/2.0-bath single-family listed at $122k.
• At list price, monthly cash flow is $5 ($64/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 $100k (18.3% below list).
• It's been on market 22 days — a 2% lower offer ($120k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $100k (18.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $843 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#300 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Starmont Community School District (rural): math 62% / reading 68% proficiency, ranked #202 of 289 in IA (top 70%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Starmont Elementary School (math 67% / reading 67%, grade B+, #273 of 616 statewide, top 51%, 264 students, 39% FRL); Starmont Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 129 students, 43% FRL); Starmont High School (math 62% / reading 67%, grade B-, #211 of 336 statewide, top 70%, 191 students, 56% FRL).
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 48 units permitted in Clayton County in 2024 (0 in 5+ unit buildings).
• Clayton County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Questions for listing agent

• Built in 1956 — 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 F-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.