406 E Cass St · Montezuma, IA 50171

$65,000

3 bd · 1.0 ba · 1,073 sqft · SingleFamily public records · 6 Days on market

Built 1900 0.40 ac lot

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Why this score? — see what drove the A- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Schools +6.5/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

This solidly built 1900 home features a solid foundation, newer steel roof (2018), good vinyl siding and is situated on 2 full lots, just under half an acre! While the interior requires a complete remodel, the sturdy structure offers a blank slate to create your custom home. Priced to reflect the needed updates, this property is an ideal investor opportunity or perfect for a buyer ready to put their own design into! Sold 'as-is'.

Key facts

• Newer steel roof
• Solid foundation
• Vinyl siding

Tags

• SOLID FOUNDATION
• NEWER STEEL ROOF
• VINYL SIDING
• 2 FULL LOTS

Property features AI

Exterior

• Parking: Detached outdoor garage; One garage space
• Utilities: Public water; Public sewer
• Home design: Single-family residence; One and one-half story; Vinyl siding
• Construction: Vinyl siding construction
• Exterior features: Lot approximately 0.4 acres (132 x 132)

Interior

• Bathrooms: One full bathroom
• Heating & cooling: Central air conditioning; Forced air heating
• Interior features: Basement present

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $65k.

Deal economics

• At list price, monthly cash flow is $409 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $65k).
• Cap rate 13.8% vs local median 1.5% in Montezuma — 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.

Location & tenants

• Location reads 75/100 on livability (#228 in IA, #4,319 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, cost of living A+; Watch: amenities F, commute F, employment F.
• Montezuma Community School District (rural): math 73% / reading 79% proficiency, ranked #55 of 289 in IA (top 19%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 66 active listings in the ZIP; 27 units permitted in Poweshiek County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $7k of equity ($449 loan paydown + $6k appreciation (10.0% local appreciation)).
• Poweshiek County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $18k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $55k; 18% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $65,000

Questions for the listing agent

1. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 1.65% ✓
• Cap rate: 13.85%
• Cash-on-cash: 26.98%
• DSCR: 2.20
• GRM: 5.0

CMA / ARV

• ARV (on-the-fly): $148,074
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
403 S 3rd St	0.10mi	3/1.0	1,128 (+5%)	6mo	$131,000	$116	82
204 W Washington St	0.44mi	3/1.0	1,092 (+2%)	4mo	$187,500	$172	73
506 S 8th St	0.24mi	3/1.5	1,147 (+7%)	5mo	$127,000	$111	72
106 E Harrison St	0.32mi	3/1.0	1,056 (-2%)	13mo	$96,000	$91	72
506 E Dallas St	0.09mi	2/1.0 (-1)	1,140 (+6%)	13mo	$148,500	$130	70
208 N 4th St	0.34mi	3/1.0	1,162 (+8%)	1mo	$142,000	$122	69
406 S 4th St	0.08mi	3/3.0	1,216 (+13%)	1mo	$195,000	$160	65
507 E Dallas St St	0.11mi	2/1.0 (-1)	924 (-14%)	2mo	$127,500	$138	65
400 S 6th St	0.06mi	4/2.5 (+1)	1,214 (+13%)	3mo	$193,000	$159	62
110 Sunnyside Dr	0.35mi	2/1.5 (-1)	1,104 (+3%)	12mo	$173,000	$157	62
201 N 8th St	0.36mi	2/1.0 (-1)	1,014 (-6%)	10mo	$142,000	$140	61
401 E Madison St	0.42mi	2/1.0 (-1)	1,134 (+6%)	14mo	$97,000	$86	54

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 44.7%
• Equity multiple: 4.38×
• Total profit: $61,477
• Equity at exit: $58,557

10-year hold

• IRR: 38.7%
• Equity multiple: 9.82×
• Total profit: $160,560
• Equity at exit: $126,281

Cash invested: $18,200 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50171

• Home prices YoY: 9.3%
• Active inventory: 66
• Price-to-rent: 5.0×

Monthly cashflow live

• Estimated rent: $1,073 medium
• Mortgage (P&I): −$341
• Tax from tax record: −$71 /mo · $848/yr
• Insurance: −$27
• HOA: −$0
• Vacancy / Maint / Mgmt: −$225
• Net cashflow: $409

Break-even live

Break-even rent $555

Max offer price $65,000

Occupancy floor 57%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $16,250
• Closing costs: $1,950
• Reserves months: —
• Total cash needed: —

Listing history 6 events

1. 2026-06-18
   days on market $65,000 Active 6 DOM
2. 2026-06-17
   days on market $65,000 Active 5 DOM
3. 2026-06-16
   days on market $65,000 Active 4 DOM
4. 2026-06-15
   days on market $65,000 Active 3 DOM
5. 2026-06-12
   remarks 433-char remark
6. 2026-06-12
   listed $65,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $848 · $71/mo
• Projected year-2 tax: $934 · $78/mo
• Expected delta: +$86/yr (+$7/mo · 10.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 3/10 Moderate 7 d/yr ≥103°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,879
• − Mortgage interest: −$3,641
• − Property taxes: −$848
• − Insurance: −$325
• − Repairs & maintenance: −$1,030
• − Management: −$1,030
• − Depreciation: −$1,891
• Taxable income: $4,114
• Est. tax owed @ 24.0%: −$987
• After-tax cash flow: $3,924/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Montezuma Community School District
• NCES district ID: 1919590
• Math proficiency: 73% ▼ -6.00%
• Reading proficiency: 79% ▲ 3.00%
• Median HH income: $57,449
• Composite: 65.04/100
• National rank: #503
• State rank: #55 of 289 in IA

Livability — Montezuma

• Score: 75/100
• State rank: #228
• US rank: #4319

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment F Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montezuma, IA
• City population: 2,445
• Population (ZIP): 2,445

Population outlook (Poweshiek County) Hauer SSP2

• Today (2025): 18,601 people
• By 2030: 18,342 · -1.4%
• By 2040: 17,944 · -3.5%
• By 2050: 18,029 · -3.1%
• By 2075: 19,945 · +7.2%
• By 2100: 22,637 · +21.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 5% Hispanic / Latino 3%
• Common ancestry: Iranian 5% Portuguese 5% Lithuanian 3%
• Foreign-born: 1% · Canada, Jamaica
• Languages at home: 98% English-only · Spanish 2%

Political lean MEDSL · Poweshiek

• 2024 margin: R (+17.0) · D 40.8% · R 57.8% · Other 1.5%
• 2008→2024 swing: -28.7pp toward R · 2008: 11.8pp · 2024: -17.0pp
• All cycles: 2024: R+17.0 2020: R+13.3 2016: R+6.8 2012: D+9.1 2008: D+11.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 30.91%
• Current HPI: 364.6554
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+18.5% since first listed

2 events — show timeline

• 2026-06-12 Listed $65,000 IAR
• 2016-11-04 Sold (Public Records) $54,875 Public Records

Property tax history

+2.1%/yr

Latest (2025): $848 · -4.9% YoY. Source: county tax records.