205 1st Ave

Persia, IA 51563

$35,000A-

2 bd · 1.0 ba · 1,100 sqft · Built 1917 · SingleFamily · Pending · 167 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $994/mo
• Mortgage (P&I): −$184
• Tax + insurance: −$111
• HOA: −$0
• Vac / Maint / Mgmt: −$209
• Net cashflow: $491/mo
• Annual: $5,888/yr
• Cap rate: 23.12%
• Cash-on-cash: 60.08%
• DSCR: 3.67
• 1% rule: 2.84%
• Cash to close: $9,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $35k.
• At list price, monthly cash flow is $491 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($994 rent vs $35k).
• It's been on market 167 days — a 12% lower offer ($31k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $31k (12.0% below list) — sets the bar for market timing.
• In year one you build about $840 of equity ($242 loan paydown + $598 appreciation (1.7% local appreciation)).
• Location reads 64/100 on livability (#622 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Tri-Center Community School District (rural): math 66% / reading 73% proficiency, ranked #126 of 289 in IA (top 44%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Tri-Center Elementary School (math 62% / reading 67%, grade B, #317 of 616 statewide, top 58%, 352 students, 32% FRL); Tri-Center Middle School (math 72% / reading 77%, grade A, #76 of 246 statewide, top 33%, 162 students, 24% FRL); Tri-Center High School (math 62% / reading 77%, grade B, #152 of 336 statewide, top 52%, 210 students, 30% FRL).
• Watch-outs: property tax is 3.3% of price; built in 1917 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 41 units permitted in Harrison County in 2024 (0 in 5+ unit buildings).
• Harrison County population projected at -26% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts; this cycle's ask has dropped $25k (42%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (1.7% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 167 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1917 — 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 D-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.