811 S Locust St

Glenwood, IA 51534

$110,000B-

2 bd · 1.0 ba · 830 sqft · Built 1920 · Other · Pending · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,198/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$610
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $-240/mo
• Annual: $-2,879/yr
• Cap rate: 8.33%
• Cash-on-cash: 7.27%
• DSCR: 1.32
• 1% rule: 1.09%
• Cash to close: $30,800

Investor read

• This is a 2-bed/1.0-bath other listed at $110k.
• At list price, monthly cash flow is $-240 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $75k (31.6% below list).
• Meets the 1% rule at list price ($1k rent vs $110k).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $75k (31.6% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $761 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#56 in IA, #1,306 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Glenwood Community School District (town): math 79% / reading 76% proficiency, ranked #38 of 289 in IA (top 13%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Glenwood Middle School (math 81% / reading 74%, grade A+, #50 of 246 statewide, top 20%, 451 students, 38% FRL); Glenwood Senior High School (math 73% / reading 76%, grade B+, #89 of 336 statewide, top 30%, 600 students, 35% FRL).
• Watch-outs: flood insurance adds $427/mo; built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 31 active listings in the ZIP; 39 units permitted in Mills County in 2024 (0 in 5+ unit buildings).
• Mills County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.3% vs local median 1.9% in Glenwood — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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.