34017 Hwy D65

Union, IA 50258

$39,500B+

3 bd · 1.5 ba · 2,324 sqft · Built 1900 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,016/mo
• Mortgage (P&I): −$207
• Tax + insurance: −$113
• HOA: −$0
• Vac / Maint / Mgmt: −$213
• Net cashflow: $482/mo
• Annual: $5,788/yr
• Cap rate: 20.95%
• Cash-on-cash: 52.33%
• DSCR: 3.33
• 1% rule: 2.57%
• Cash to close: $11,060

Investor read

• This is a 3-bed/1.5-bath single-family listed at $40k.
• At list price, monthly cash flow is $482 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $1k of equity ($273 loan paydown + $1k appreciation (2.7% local appreciation)).
• Location reads 67/100 on livability (#472 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Bcluw Community School District (rural): math 60% / reading 70% proficiency, ranked #192 of 289 in IA (top 66%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bcluw Elementary School (math 72% / reading 67%, grade A-, #224 of 616 statewide, top 42%, 179 students, 47% FRL); Bcluw Middle School (math 57% / reading 72%, grade A-, #157 of 246 statewide, top 67%, 150 students, 43% FRL); Bcluw High School (math 62% / reading 72%, grade B, #192 of 336 statewide, top 59%, 177 students, 31% FRL).
• Watch-outs: property tax is 2.9% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 6 units permitted in Hardin County in 2024 (0 in 5+ unit buildings).
• Hardin County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (2.7% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• 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?
• 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.
• 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.