1001 Peniel St

University Park, IA 52595

$128,350C-

3 bd · 1.0 ba · 1,317 sqft · Built 1906 · SingleFamily · Pending · 134 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,064/mo
• Mortgage (P&I): −$673
• Tax + insurance: −$181
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-14/mo
• Annual: $-164/yr
• Cap rate: 6.17%
• Cash-on-cash: -0.46%
• DSCR: 0.98
• 1% rule: 0.83%
• Cash to close: $35,938

Investor read

• This is a 3-bed/1.0-bath single-family listed at $128k.
• At list price, monthly cash flow is $-14 ($-164/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (1.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (17.1% below list).
• It's been on market 134 days — a 12% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (17.1% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($888 loan paydown + $3k appreciation (2.4% local appreciation)).
• Location reads 61/100 on livability (#762 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime C-, schools F, amenities F.
• Oskaloosa Community School District (rural): math 62% / reading 67% proficiency, ranked #208 of 289 in IA (top 72%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1906 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 13 units permitted in Mahaska County in 2024 (0 in 5+ unit buildings).
• Mahaska County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 3y ago; this cycle's ask has dropped $23k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (2.4% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k 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 134 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1906 — 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 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.