1280 Elm St

Mountain Home, ID 83647

$225,000D

3 bd · 2.0 ba · 1,870 sqft · Built 1961 · Other · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,956/mo
• Mortgage (P&I): −$1,180
• Tax + insurance: −$339
• HOA: −$0
• Vac / Maint / Mgmt: −$411
• Net cashflow: $26/mo
• Annual: $317/yr
• Cap rate: 6.43%
• Cash-on-cash: 0.50%
• DSCR: 1.02
• 1% rule: 0.87%
• Cash to close: $63,000

Investor read

• This is a 3-bed/2.0-bath other listed at $225k.
• At list price, monthly cash flow is $26 ($317/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $196k (13.0% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $196k (13.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#26 in ID, #3,741 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Mountain Home District (town): math 28% / reading 44% proficiency, ranked #78 of 92 in ID (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: North Elementary School (math 22% / reading 32%, grade F, #318 of 357 statewide, top 92%, 326 students, 48% FRL); Hacker Middle School (math 24% / reading 40%, grade F, #90 of 109 statewide, top 84%, 552 students, 45% FRL); Mountain Home Sr High School (math 21% / reading 44%, grade F, #117 of 169 statewide, top 70%, 960 students, 33% FRL) — zoned schools at 42% FRL track the district average.
• Market conditions: Rents rising fast (+6.2%/yr); 355 active listings in the ZIP; 129 units permitted in Elmore County in 2024 (0 in 5+ unit buildings).
• Elmore County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.4% vs local median 3.0% in Mountain Home — 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.
• This rent runs 37% of the median local income ($64k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Built in 1961 — 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.
• 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.
• 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.