504 Queen St

Fonda, IA 50540

$119,900C

5 bd · 2.0 ba · 1,768 sqft · Built 1965 · SingleFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,034/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$125
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $63/mo
• Annual: $751/yr
• Cap rate: 6.92%
• Cash-on-cash: 2.24%
• DSCR: 1.10
• 1% rule: 0.86%
• Cash to close: $33,572

Investor read

• This is a 5-bed/2.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $63 ($751/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 $103k (13.8% below list).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $103k (13.8% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($829 loan paydown + $1k appreciation (1.2% local appreciation)).
• Location reads 66/100 on livability (#532 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: schools F, amenities F, commute F.
• Newell-Fonda Community School District (rural): math 61% / reading 71% proficiency, ranked #186 of 289 in IA (top 64%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 3 active listings in the ZIP; 1 units permitted in Pocahontas County in 2024 (0 in 5+ unit buildings).
• At projected returns (1.2% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~8 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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 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.