808 W Main St

Elma, IA 50628

$29,900B+

3 bd · 1.5 ba · 1,248 sqft · Built 1898 · SingleFamily · Pending · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,113/mo
• Mortgage (P&I): −$157
• Tax + insurance: −$88
• HOA: −$0
• Vac / Maint / Mgmt: −$234
• Net cashflow: $635/mo
• Annual: $7,616/yr
• Cap rate: 31.76%
• Cash-on-cash: 90.97%
• DSCR: 5.05
• 1% rule: 3.72%
• Cash to close: $8,372

Investor read

• This is a 3-bed/1.5-bath single-family listed at $30k.
• At list price, monthly cash flow is $635 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $30k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($207 loan paydown + $2k appreciation (5.8% local appreciation)).
• Location reads 60/100 on livability (#810 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, health & safety C-, schools F.
• Howard-Winneshiek Community School District (town): math 62% / reading 70% proficiency, ranked #189 of 289 in IA (top 65%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: property tax is 3.0% of price; built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 8 units permitted in Howard County in 2024 (0 in 5+ unit buildings).
• Howard County population projected at -18% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $19k; list at $30k implies a 57% gain — meaningful room to come down on a strong offer.
• At projected returns (5.8% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1898 — 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?
• 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.