796-804 Logan St

Sioux City, IA 51105

$625,000D

3 bd · 2.5 ba · 1,528 sqft · Built 2020 · MultiFamily · Active · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,374/mo
• Mortgage (P&I): −$3,278
• Tax + insurance: −$398
• HOA: −$0
• Vac / Maint / Mgmt: −$919
• Net cashflow: $-220/mo
• Annual: $-2,642/yr
• Cap rate: 5.87%
• Cash-on-cash: -1.51%
• DSCR: 0.93
• 1% rule: 0.70%
• Cash to close: $175,000

Investor read

• This is a 5 × 2-bed/1.0-bath units multifamily listed at $625k.
• At list price, monthly cash flow is $-220 ($-3k/yr) — negative. Per door: $-44/mo.
• To cash-flow at today's rent, offer at most $586k (6.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $437k (30.0% below list).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $437k (30.0% below list) — sets the bar for 1% rule.
• In year one you build about $28k of equity ($4k loan paydown + $24k appreciation (3.8% local appreciation)).
• Location reads 78/100 on livability (#138 in IA, #2,544 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, commute F.
• Sioux City Community School District (urban): math 54% / reading 57% proficiency, ranked #264 of 289 in IA (top 91%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Unity Elementary School (math 50% / reading 52%, grade C-, #510 of 616 statewide, top 83%, 521 students, 74% FRL); East Middle School (math 60% / reading 67%, grade B+, #169 of 246 statewide, top 69%, 1,067 students, 65% FRL); East High School (math 53% / reading 63%, grade C, #275 of 336 statewide, top 83%, 1,495 students, 54% FRL).
• Market conditions: 31 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 170 units permitted in Woodbury County in 2024 (90 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.9% vs local median 3.7% in Sioux City — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.