421 S 8th St

Albia, IA 52531

$67,500A-

4 bd · 1.0 ba · 1,152 sqft · Built 1956 · Other · Active · 65 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,100/mo
• Mortgage (P&I): −$354
• Tax + insurance: −$177
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $339/mo
• Annual: $4,063/yr
• Cap rate: 12.31%
• Cash-on-cash: 21.50%
• DSCR: 1.96
• 1% rule: 1.63%
• Cash to close: $18,900

Investor read

• This is a 4-bed/1.0-bath other listed at $68k.
• At list price, monthly cash flow is $339 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $68k).
• It's been on market 65 days — a 6% lower offer ($63k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $63k (6.0% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($467 loan paydown + $7k appreciation (10.0% local appreciation)).
• Location reads 73/100 on livability (#265 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, employment D+, amenities F.
• Albia Community School District (town): math 68% / reading 77% proficiency, ranked #117 of 289 in IA (top 40%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Lincoln Center (math 66% / reading 69%, grade B+, #270 of 616 statewide, top 44%, 293 students, 42% FRL); Albia Middle School (math 72% / reading 82%, grade A, #52 of 246 statewide, top 22%, 164 students, 40% FRL); Albia High School (math 68% / reading 83%, grade A-, #79 of 336 statewide, top 25%, 374 students, 38% FRL).
• Watch-outs: property tax is 2.6% of price; built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 30 active listings in the ZIP; 13 units permitted in Monroe County in 2024 (0 in 5+ unit buildings).
• 5 sale attempts since 17y ago; this cycle's ask has dropped $7k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 65 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1956 — 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?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.