2470 480th St

Webb, IA 51366

$66,500B+

3 bd · 3.0 ba · 1,655 sqft · Built 1988 · SingleFamily · Active Under Contract · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,251/mo
• Mortgage (P&I): −$349
• Tax + insurance: −$125
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $515/mo
• Annual: $6,180/yr
• Cap rate: 15.59%
• Cash-on-cash: 33.19%
• DSCR: 2.48
• 1% rule: 1.88%
• Cash to close: $18,620

Investor read

• This is a 3-bed/3.0-bath single-family listed at $66k.
• At list price, monthly cash flow is $515 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $66k).
• It's been on market 51 days — a 3% lower offer ($65k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $65k (3.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($460 loan paydown + $3k appreciation (5.1% local appreciation)).
• Location reads 63/100 on livability (#646 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety D, amenities F.
• Sioux Central Community School District (rural): math 68% / reading 73% proficiency, ranked #143 of 289 in IA (top 50%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Sioux Central Elementary School (math 77% / reading 67%, grade A-, #181 of 616 statewide, top 34%, 241 students, 26% FRL); Sioux Central Middle School (math 67% / reading 72%, grade A, #113 of 246 statewide, top 49%, 141 students, 25% FRL); Sioux Central High School (math 62% / reading 77%, grade B, #152 of 336 statewide, top 52%, 274 students, 34% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: 2 active listings in the ZIP; 11 units permitted in Clay County in 2024 (0 in 5+ unit buildings).
• Clay County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 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 (5.1% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 51 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• 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?
• 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.