410 Cottage St NW

Shellsburg, IA 52332

$136,500D+

2 bd · 1.0 ba · 860 sqft · Built 1890 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $889/mo
• Mortgage (P&I): −$716
• Tax + insurance: −$153
• HOA: −$0
• Vac / Maint / Mgmt: −$187
• Net cashflow: $-166/mo
• Annual: $-1,995/yr
• Cap rate: 4.83%
• Cash-on-cash: -5.22%
• DSCR: 0.77
• 1% rule: 0.65%
• Cash to close: $38,220

Investor read

• This is a 2-bed/1.0-bath single-family listed at $136k.
• At list price, monthly cash flow is $-166 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $107k (21.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $89k (34.9% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $89k (34.9% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($944 loan paydown + $8k appreciation (6.2% local appreciation)).
• Location reads 71/100 on livability (#344 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: amenities F, commute F, health & safety F.
• Vinton-Shellsburg Community School District (rural): math 79% / reading 77% proficiency, ranked #43 of 289 in IA (top 15%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Shellsburg Elementary School (math 87% / reading 72%, grade A, #71 of 616 statewide, top 15%, 234 students, 42% FRL); Vinton-Shellsburg Middle School (math 83% / reading 81%, grade A+, #22 of 246 statewide, top 12%, 318 students, 42% FRL); Vinton-Shellsburg High School (math 72% / reading 80%, grade A-, #75 of 336 statewide, top 23%, 425 students, 35% FRL).
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 16 active listings in the ZIP; 34 units permitted in Benton County in 2024 (0 in 5+ unit buildings).
• Benton County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 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.
• Current owner paid $76k; list at $136k implies a 81% gain — meaningful room to come down on a strong offer.
• By year 4, paydown + projected appreciation supports a ~$32k 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?
• Built in 1890 — 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 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?
• 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.