215 Jewel Dr Unit 1-8

Ames, IA 50010

$995,000C-

None bd · None ba · 8,267 sqft · Built 1996 · MultiFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,927/mo
• Mortgage (P&I): −$5,218
• Tax + insurance: −$1,658
• HOA: −$0
• Vac / Maint / Mgmt: −$2,085
• Net cashflow: $966/mo
• Annual: $11,593/yr
• Cap rate: 7.46%
• Cash-on-cash: 4.16%
• DSCR: 1.19
• 1% rule: 1.00%
• Cash to close: $278,600

Investor read

• This is a multifamily listed at $995k. Condition is rated fair.
• At list price, monthly cash flow is $966 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $993k (0.2% below list).
• It's been on market 120 days — a 9% lower offer ($905k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $905k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k of value loss. Plan a longer hold.
• Location reads 93/100 on livability (#2 in IA, #21 nationally) — a professional / high-income tenant draw. Strengths: schools A+, amenities A+, commute A+; Watch: employment C-.
• Ames Community School District (urban): math 70% / reading 72% proficiency, ranked #147 of 289 in IA (top 51%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: Rents rising (+2.7%/yr); 183 active listings in the ZIP; 196 units permitted in Story County in 2024 (34 in 5+ unit buildings).
• Story County population projected at +54% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 9y ago; this cycle's ask has dropped $90k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $842k; 18% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 7.5% vs local median 2.2% in Ames — 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.
• At $9,927/mo this rent would consume 182% of the median local household income ($65k/yr) (locally 1523% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 120 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: Kitchen cabinets — Significant wear and tear, possibly requiring replacement.
• Major: Bathroom fixtures — Significant wear and tear, possibly requiring replacement.
• Major: Exterior siding — Significant wear and tear, possibly requiring repainting or replacement.
• Major: Interior walls — Significant wear and tear, possibly requiring repainting.
• Moderate: HVAC system — May require cleaning or minor repairs to maintain efficiency.
• Major: Landscaping — Overgrown areas and bare trees require trimming and planting to improve curb appeal.