713 N Monroe St

Monroe, IA 50170

$158,900C-

2 bd · 1.0 ba · 1,288 sqft · Built 1900 · SingleFamily · Pending · 183 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,056/mo
• Mortgage (P&I): −$833
• Tax + insurance: −$172
• HOA: −$0
• Vac / Maint / Mgmt: −$222
• Net cashflow: $-171/mo
• Annual: $-2,046/yr
• Cap rate: 5.01%
• Cash-on-cash: -4.60%
• DSCR: 0.80
• 1% rule: 0.66%
• Cash to close: $44,492

Investor read

• This is a 2-bed/1.0-bath single-family listed at $159k.
• At list price, monthly cash flow is $-171 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $129k (19.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (33.5% below list).
• It's been on market 183 days — a 12% lower offer ($140k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (33.5% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($1k loan paydown + $15k appreciation (9.3% local appreciation)).
• Location reads 79/100 on livability (#118 in IA, #2,215 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Pcm Community School District (rural): math 65% / reading 75% proficiency, ranked #124 of 289 in IA (top 43%) — strong family-tenant draw, lease renewals of 3-5y typical; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Prairie City Elementary School (math 72% / reading 77%, grade A, #131 of 616 statewide, top 27%, 320 students, 25% FRL); Pcm Middle School (math 65% / reading 72%, grade A, #126 of 246 statewide, top 53%, 247 students, 29% FRL); Pcm High School (math 64% / reading 83%, grade B+, #108 of 336 statewide, top 33%, 357 students, 21% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 36 active listings in the ZIP; 16 units permitted in Jasper County in 2024 (0 in 5+ unit buildings).
• Jasper County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 6y ago; this cycle's ask has dropped $26k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $51k; list at $159k implies a 212% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$40k 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 183 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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 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?
• 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.