8321 L Ave

Fayette, IA 52142

$49,900B+

4 bd · 1.0 ba · 1,800 sqft · Built 1923 · SingleFamily · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,294/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$114
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $646/mo
• Annual: $7,755/yr
• Cap rate: 21.83%
• Cash-on-cash: 55.50%
• DSCR: 3.47
• 1% rule: 2.59%
• Cash to close: $13,972

Investor read

• This is a 4-bed/1.0-bath single-family listed at $50k.
• At list price, monthly cash flow is $646 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($345 loan paydown + $3k appreciation (6.0% local appreciation)).
• Location reads 73/100 on livability (#264 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• West Central Community School District (rural): math 65% / reading 65% proficiency, ranked #231 of 330 in IA (top 70%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: West Central Pk - 8 School (math 52% / reading 62%, grade C+, #436 of 616 statewide, top 74%, 239 students, 44% FRL); West Central Charter High School (math 64% / reading 74%, grade B, #152 of 336 statewide, top 52%, 82 students, 51% FRL, charter).
• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 8 units permitted in Fayette County in 2024 (0 in 5+ unit buildings).
• Fayette County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (6.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 10, 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

• Built in 1923 — 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 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?
• 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.