1116 Pearl St

Onawa, IA 51040

$138,000B

4 bd · 2.0 ba · 1,502 sqft · Built 1920 · SingleFamily · Active · 75 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,469/mo
• Mortgage (P&I): −$724
• Tax + insurance: −$188
• HOA: −$0
• Vac / Maint / Mgmt: −$308
• Net cashflow: $249/mo
• Annual: $2,983/yr
• Cap rate: 8.45%
• Cash-on-cash: 7.72%
• DSCR: 1.34
• 1% rule: 1.06%
• Cash to close: $38,640

Investor read

• This is a 4-bed/2.0-bath single-family listed at $138k.
• At list price, monthly cash flow is $249 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $138k).
• It's been on market 75 days — a 6% lower offer ($130k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $130k (6.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($954 loan paydown + $1k appreciation (0.8% local appreciation)).
• Location reads 75/100 on livability (#223 in IA, #4,208 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• West Monona Community School District (town): math 57% / reading 67% proficiency, ranked #240 of 289 in IA (top 83%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: West Monona Elementary (math 52% / reading 72%, grade B, #363 of 616 statewide, top 62%, 325 students, 47% FRL); West Monona Middle Sch (math 62% / reading 62%, grade B+, #175 of 246 statewide, top 72%, 105 students, 43% FRL); West Monona High School (math 57% / reading 67%, grade B-, #242 of 336 statewide, top 76%, 204 students, 50% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 24 active listings in the ZIP; 9 units permitted in Monona County in 2024 (0 in 5+ unit buildings).
• Monona County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $72k; list at $138k implies a 90% gain — meaningful room to come down on a strong offer.
• At projected returns (0.8% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~7 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 75 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.