626 Elizabeth Ln NW

Bondurant, IA 50035

$280,000D

3 bd · 2.5 ba · 1,896 sqft · Built 2019 · SingleFamily · Active · 257 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,147/mo
• Mortgage (P&I): −$1,468
• Tax + insurance: −$529
• HOA: −$8
• Vac / Maint / Mgmt: −$451
• Net cashflow: $-309/mo
• Annual: $-3,710/yr
• Cap rate: 4.97%
• Cash-on-cash: -4.73%
• DSCR: 0.79
• 1% rule: 0.77%
• Cash to close: $78,400

Investor read

• This is a 3-bed/2.5-bath single-family listed at $280k.
• At list price, monthly cash flow is $-309 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $225k (19.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $215k (23.3% below list).
• It's been on market 257 days — a 12% lower offer ($246k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $215k (23.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#205 in IA, #3,724 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety F.
• Bondurant-Farrar Community School District (rural): math 68% / reading 75% proficiency, ranked #89 of 289 in IA (top 31%) — strong family-tenant draw, lease renewals of 3-5y typical; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Morris Elementary (621 students, 14% FRL); Bondurant - Farrar Intermediate School (math 67% / reading 79%, grade A, #87 of 246 statewide, top 36%, 380 students, 19% FRL); Bondurant-Farrar High School (math 72% / reading 80%, grade A-, #75 of 336 statewide, top 23%, 761 students, 21% FRL) — zoned schools at 18% FRL track the district average.
• Market conditions: 253 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 6y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $226k; 24% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.0% vs local median 3.0% in Bondurant — 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.

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 257 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.