540 7th Ave W · Spencer, IA 51301

$129,000

2 bd · 3.0 ba · 1,152 sqft · SingleFamily public records · 3 Days on market

Built 1900 0.27 ac lot Est $124k · at est.

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Why this score? — see what drove the C+ 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 +25.7/30.0
• DSCR +8.5/10.0
• Schools +6.1/10.0
• 1% rule +5.9/10.0
• ARV discount +5.8/15.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

This charming 1½-story bungalow, built in 1900, is a solid, well-maintained home full of character and potential. Situated on a generous property that includes an extra lot, it offers added flexibility for future expansion, additional parking, or other possibilities, with the curb already in place for a driveway approach. The home features 2+ bedrooms, 1½ bathrooms, a welcoming 3-season room, and a detached 2-car garage. A full bathroom is located in the basement, although the fixtures were not replaced following the 2024 flood, providing an opportunity for the new owner to finish the space to their liking. As a result of the flood, the furnace, water heater, washer, and dryer

Key facts

• Extra lot
• New furnace
• New water heater

Tags

• EXTRA LOT
• 3-SEASON ROOM
• DETACHED 2-CAR GARAGE
• FULL BATHROOM IN BASEMENT
• NEW FURNACE
• NEW WATER HEATER

Property features AI

Finance

• Financial info: Annual tax amount listed (see full listing for details)

Exterior

• Parking: Detached concrete garage with 2-car capacity
• Utilities: Public water; Public sewer
• Home design: Single-family residence; One and one-half level; One-story listed; Aluminum siding; Asphalt roof; Located in HAINES COURT subdivision
• Construction: Built with aluminum siding
• Exterior features: Publicly maintained road access; Lot approximately 84 x 140 (0.27 acres)

Interior

• Bathrooms: One three-quarter bathroom; One half bathroom
• Heating & cooling: Natural gas forced air heating; Central air conditioning
• Interior features: Full basement; Porch

What this means for you Summary

Snapshot

• This is a 2-bed/3.0-bath single-family listed at $129k.

Deal economics

• At list price, monthly cash flow is $307 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $129k).
• Cap rate 9.2% vs local median 4.6% in Spencer — 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 77/100 on livability (#168 in IA, #3,020 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, cost of living A+; Watch: employment D, amenities F, commute F.
• Spencer Community School District (town): math 73% / reading 72% proficiency, ranked #114 of 289 in IA (top 39%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 108 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 11 units permitted in Clay County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $892 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Clay County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

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

Recommended offer $129,000

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: 1.09% ✓
• Cap rate: 9.15%
• Cash-on-cash: 10.21%
• DSCR: 1.45
• GRM: 7.7

CMA / ARV

• ARV (on-the-fly): $124,416
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
422 11th Ave W	0.27mi	3/1.0 (+1)	1,107 (-4%)	6mo	$152,500	$138	63
1025 W 7th St	0.29mi	2/1.0	1,080 (-6%)	7mo	$118,000	$109	62
821 Fisher Ct	0.21mi	2/1.5	1,296 (+12%)	2mo	$140,000	$108	62
309 Tompkins Ct	0.62mi	3/1.0 (+1)	1,160 (+1%)	3mo	$107,500	$93	54
309 12th Ave W	0.41mi	3/1.0 (+1)	1,232 (+7%)	2mo	$123,600	$100	54
1112 3rd Ave W	0.49mi	3/1.0 (+1)	1,144 (-1%)	10mo	$102,800	$90	54
32 W 1st St	0.57mi	3/1.0 (+1)	1,195 (+4%)	2mo	$114,000	$95	53
1211 W 7th St	0.41mi	2/1.5	1,243 (+8%)	13mo	$169,000	$136	51
302 E 9th St	0.74mi	2/2.0	1,224 (+6%)	12mo	$137,500	$112	41
120 E 3rd St	0.67mi	3/1.0 (+1)	1,041 (-10%)	6mo	$120,000	$115	35
106 E 10th St	0.64mi	3/1.0 (+1)	1,296 (+12%)	6mo	$112,500	$87	32
721 3rd Ave E	0.70mi	3/1.0 (+1)	1,307 (+14%)	13mo	$89,500	$68	21

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

Projected returns pro-forma

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

5-year hold

• IRR: -1.0%
• Equity multiple: 0.96×
• Total profit: $-1,373
• Equity at exit: $19,234

10-year hold

• IRR: 8.7%
• Equity multiple: 1.66×
• Total profit: $23,860
• Equity at exit: $11,154

Cash invested: $36,120 (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 51301

• Home prices YoY: -35.0%
• Active inventory: 108
• Price-to-rent: 7.7×

Monthly cashflow live

• Estimated rent: $1,405 medium
• Mortgage (P&I): −$676
• Tax from tax record: −$72 /mo · $868/yr
• Insurance: −$54
• HOA: −$0
• Vacancy / Maint / Mgmt: −$295
• Net cashflow: $307

Break-even live

Break-even rent $1,016

Max offer price $129,000

Occupancy floor 73%

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: $32,250
• Closing costs: $3,870
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
801 9th St SW Unit 814-D6 Spencer, IA	3.0	2.0	1230	$1,460	$1.19	43d	1	0.95mi
801 9th St SW Unit 1001-201 Spencer, IA	3.0	2.0	998	$1,345	$1.35	43d	1	0.95mi

Listing history 4 events

1. 2026-06-18
   days on market $129,000 Active 3 DOM
2. 2026-06-17
   days on market $129,000 Active 2 DOM
3. 2026-06-16
   remarks 685-char remark
4. 2026-06-16
   listed $129,000 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: $868 · $72/mo
• Projected year-2 tax: $1,447 · $121/mo
• Expected delta: +$579/yr (+$48/mo · 66.7%)

ⓘ 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 2/10 Low 7 d/yr ≥99°F today · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,857
• − Mortgage interest: −$7,226
• − Property taxes: −$868
• − Insurance: −$645
• − Repairs & maintenance: −$1,349
• − Management: −$1,349
• − Depreciation: −$3,753
• Taxable income: $1,668
• Est. tax owed @ 24.0%: −$400
• After-tax cash flow: $3,286/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: Spencer Community School District
• NCES district ID: 1926910
• Math proficiency: 73% ▼ -7.00%
• Reading proficiency: 72% ▼ -6.00%
• Median HH income: $45,474
• Composite: 61.02/100
• National rank: #797
• State rank: #114 of 289 in IA

Livability — Spencer

• Score: 77/100
• State rank: #168
• US rank: #3020

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Spencer, IA
• City population: 12,402
• Population (ZIP): 12,402

Population outlook (Clay County) Hauer SSP2

• Today (2025): 16,277 people
• By 2030: 16,073 · -1.3%
• By 2040: 15,638 · -3.9%
• By 2050: 15,315 · -5.9%
• By 2075: 15,026 · -7.7%
• By 2100: 14,638 · -10.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Hispanic / Latino 5% Two or more races 4%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 14% Iranian 4% Lithuanian 2%
• Foreign-born: 1% · Canada, South Korea
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Clay

• 2024 margin: Solid R (+43.2) · D 27.8% · R 71.0% · Other 1.2%
• 2008→2024 swing: -38.1pp toward R · 2008: -5.1pp · 2024: -43.2pp
• All cycles: 2024: R+43.2 2020: R+38.7 2016: R+42.4 2012: R+18.7 2008: R+5.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -103.43%
• Current HPI: 192.1741
• 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

1 event — show timeline

• 2026-06-15 Listed $129,000 Iowa Great Lakes BOR

Property tax history

-1.6%/yr

Latest (2025): $868 · -6.7% YoY. Source: county tax records.