907 Bell St

Churdan, IA 50050

$139,000D-

3 bd · 1.5 ba · 1,152 sqft · Built 1976 · Other · Pending · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,062/mo
• Mortgage (P&I): −$729
• Tax + insurance: −$181
• HOA: −$0
• Vac / Maint / Mgmt: −$223
• Net cashflow: $-71/mo
• Annual: $-850/yr
• Cap rate: 5.68%
• Cash-on-cash: -2.18%
• DSCR: 0.90
• 1% rule: 0.76%
• Cash to close: $38,920

Investor read

• This is a 3-bed/1.5-bath other listed at $139k.
• At list price, monthly cash flow is $-71 ($-850/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (9.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (23.6% below list).
• It's been on market 89 days — a 6% lower offer ($131k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (23.6% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($961 loan paydown + $8k appreciation (5.9% local appreciation)).
• Location reads 65/100 on livability (#564 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Paton-Churdan Community School District (rural): math 80% / reading 70% proficiency, ranked #111 of 330 in IA (top 34%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Paton-Churdan Elementary (math 82% / reading 67%, grade A, #131 of 616 statewide, top 27%, 89 students, 40% FRL); Paton-Churdan Jr-Sr High School (math 62% / reading 67%, grade B-, #211 of 336 statewide, top 70%, 99 students, 35% FRL) — zoned schools at 38% FRL track the district average.
• Market conditions: 8 active listings in the ZIP; 15 units permitted in Greene County in 2024 (0 in 5+ unit buildings).
• Greene County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• At projected returns (5.9% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 89 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.