904 Sherman St

Dysart, IA 52224

$81,524C+

3 bd · 1.5 ba · 1,944 sqft · Built 1900 · SingleFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $953/mo
• Mortgage (P&I): −$428
• Tax + insurance: −$242
• HOA: −$0
• Vac / Maint / Mgmt: −$200
• Net cashflow: $83/mo
• Annual: $997/yr
• Cap rate: 7.52%
• Cash-on-cash: 4.37%
• DSCR: 1.19
• 1% rule: 1.17%
• Cash to close: $22,827

Investor read

• This is a 3-bed/1.5-bath single-family listed at $82k.
• At list price, monthly cash flow is $83 ($997/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($953 rent vs $82k).
• It's been on market 120 days — a 9% lower offer ($74k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $74k (9.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($564 loan paydown + $4k appreciation (4.4% local appreciation)).
• Location reads 77/100 on livability (#158 in IA, #2,881 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, cost of living A+; Watch: employment C-, amenities F, commute F.
• Union Community School District (rural): math 77% / reading 75% proficiency, ranked #53 of 289 in IA (top 18%) — strong family-tenant draw, lease renewals of 3-5y typical; only 20% free/reduced lunch — higher-income household profile.
• Watch-outs: property tax is 3.1% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 27 active listings in the ZIP; 17 units permitted in Tama County in 2024 (0 in 5+ unit buildings).
• Tama County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (4.4% appreciation + 3.0% rent growth), your $23k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, 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

• It's been on market 120 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.