108 SW Second St

Elkader, IA 52043

$185,000F

3 bd · 3.0 ba · 1,856 sqft · Built 1889 · SingleFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,215/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$246
• HOA: −$0
• Vac / Maint / Mgmt: −$255
• Net cashflow: $-256/mo
• Annual: $-3,072/yr
• Cap rate: 4.63%
• Cash-on-cash: -5.93%
• DSCR: 0.74
• 1% rule: 0.66%
• Cash to close: $51,800

Investor read

• This is a 3-bed/3.0-bath single-family listed at $185k.
• At list price, monthly cash flow is $-256 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $140k (24.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $122k (34.3% below list).
• It's been on market 55 days — a 3% lower offer ($179k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (34.3% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($1k loan paydown + $12k appreciation (6.6% local appreciation)).
• Location reads 80/100 on livability (#77 in IA, #1,634 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Central Community School District (rural): math 56% / reading 70% proficiency, ranked #214 of 289 in IA (top 74%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Central Elementary (math 72% / reading 67%, grade A-, #224 of 616 statewide, top 42%, 263 students, 47% FRL) — zoned schools average 47% FRL vs 23% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1889 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 48 units permitted in Clayton County in 2024 (0 in 5+ unit buildings).
• Clayton County population projected at -21% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 11y 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 $62k; list at $185k implies a 198% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

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 55 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• Built in 1889 — 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 B-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.
• 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.