Ryman Plan

Johnston, IA 50131

$340,000F

5 bd · 3.0 ba · 2,609 sqft · Built — · SingleFamily · Active · 953 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,839/mo
• Mortgage (P&I): −$2,333
• Tax + insurance: −$742
• HOA: −$12
• Vac / Maint / Mgmt: −$596
• Net cashflow: $-844/mo
• Annual: $-10,124/yr
• Cap rate: 4.02%
• Cash-on-cash: -8.13%
• DSCR: 0.64
• 1% rule: 0.64%
• Cash to close: $124,581

Investor read

• This is a 5-bed/3.0-bath single-family listed at $340k. Condition is rated excellent.
• At list price, monthly cash flow is $-844 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $323k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $284k (16.5% below list).
• It's been on market 953 days — a 12% lower offer ($299k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $284k (16.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#59 in IA, #1,344 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F.
• Johnston Community School District (suburban): math 78% / reading 78% proficiency, ranked #24 of 289 in IA (top 8%) — strong family-tenant draw, lease renewals of 3-5y typical; only 14% free/reduced lunch — higher-income household profile.
• Market conditions: Rents rising (+1.5%/yr); 376 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 2,953 units permitted in Polk County in 2024 (540 in 5+ unit buildings).
• Polk County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.0% vs local median 2.4% in Johnston — 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 32% of the median local income ($107k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• It's been on market 953 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?
• 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.