2986 333rd St

Wellman, IA 52356

$475,000D

3 bd · 1.5 ba · 2,900 sqft · Built 1996 · SingleFamily · Pending · 214 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,319/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$464
• HOA: −$0
• Vac / Maint / Mgmt: −$277
• Net cashflow: $-1,913/mo
• Annual: $-22,958/yr
• Cap rate: 1.46%
• Cash-on-cash: -17.26%
• DSCR: 0.23
• 1% rule: 0.28%
• Cash to close: $133,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $475k.
• At list price, monthly cash flow is $-2k ($-23k/yr) — negative.
• To cash-flow at today's rent, offer at most $137k (71.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $132k (72.2% below list).
• It's been on market 214 days — a 12% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $132k (72.2% below list) — sets the bar for 1% rule.
• In year one you build about $51k of equity ($3k loan paydown + $48k appreciation (10.0% local appreciation)).
• Location reads 72/100 on livability (#299 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Mid-Prairie Community School District (rural): math 66% / reading 72% proficiency, ranked #149 of 289 in IA (top 52%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Mid-Prairie West Elem. School (math 63% / reading 66%, grade B, #317 of 616 statewide, top 58%, 350 students, 21% FRL); Mid-Prairie Middle School (math 68% / reading 71%, grade A, #113 of 246 statewide, top 49%, 430 students, 27% FRL); Mid-Prairie High School (math 64% / reading 74%, grade B, #176 of 336 statewide, top 53%, 379 students, 21% FRL) — zoned schools at 23% FRL track the district average.
• Market conditions: 9 active listings in the ZIP; 12 units permitted in Iowa County in 2024 (0 in 5+ unit buildings).
• Iowa County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $144k; list at $475k implies a 229% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$82k 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

• 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 214 days. Have you received any prior offers? Is the seller open to a 72% concession, seller financing, or rate buy-down credit?
• 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 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.