509 W Madison St · Knoxville, IA 50138

$75,000

2 bd · 1.0 ba · 682 sqft · SingleFamily public records · 14 Days on market

Built 1920 $110/sqft · 22% below area Est $96k · 22% under

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +28.8/30.0
• ARV discount +15.0/15.0
• DSCR +10.0/10.0
• 1% rule +7.6/10.0
• Schools +5.3/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

New roof, investment opportunity to rent out, can get 800 a month for rent. Or a starter home for a couple or a small family.

Key facts

• New roof
• Built 1920
• Listed 13 days

Tags

• NEW ROOF
• INVESTMENT OPPORTUNITY

🏷️ Possibly a rental listed for sale. The $75,000 price doesn't fit this home's estimated sale value (~$95,942) and the remarks read like a rental — treat the cards below with caution.

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $75k.

Deal economics

• At list price, monthly cash flow is $253 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($945 rent vs $75k).
• Cap rate 10.3% vs local median 2.4% in Knoxville — 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.

Location & tenants

• Location reads 69/100 on livability (#406 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Knoxville Community School District (town): math 62% / reading 63% proficiency, ranked #220 of 289 in IA (top 76%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 100 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 122 units permitted in Marion County in 2024 (0 in 5+ unit buildings).
• This rent is only 15% of the median local income ($75k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $519 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Marion County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~9 years — after that, you're playing with house money.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $75,000

Questions for the listing agent

1. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are B-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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 1.26% ✓
• Cap rate: 10.34%
• Cash-on-cash: 14.44%
• DSCR: 1.64
• GRM: 6.6

CMA / ARV

• ARV (median comp): $95,942
• List price: $75,000
• Delta: -21.83%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 10 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
709 S Streeter St	0.17mi	2/1.0	672 (-2%)	10mo	$40,000	$60	81
117 E Cronkhite St	0.32mi	2/1.0	698 (+2%)	9mo	$155,100	$222	74
918 W Washington St	0.29mi	2/1.5	748 (+10%)	2mo	$135,000	$180	67
917 S Roche St	0.27mi	3/1.0 (+1)	768 (+13%)	2mo	$200,000	$260	60
1302 W Robinson St	0.50mi	2/1.0	648 (-5%)	19mo	$122,000	$188	52
121 S Park Lane Dr	0.62mi	2/1.0	728 (+7%)	11mo	$124,400	$171	50
106 S Park Lane Dr	0.68mi	2/1.0	738 (+8%)	6mo	$138,000	$187	50
110 S Conrey St	0.62mi	2/1.0	745 (+9%)	19mo	$80,000	$107	40
706 W Jones St	0.61mi	2/1.0	780 (+14%)	10mo	$78,000	$100	39
802 E Washington St	0.73mi	2/1.0	768 (+13%)	19mo	$127,500	$166	29

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 4.8%
• Equity multiple: 1.19×
• Total profit: $3,940
• Equity at exit: $11,183

10-year hold

• IRR: 14.3%
• Equity multiple: 2.15×
• Total profit: $24,152
• Equity at exit: $6,485

Cash invested: $21,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50138

• Home prices YoY: -25.3%
• Active inventory: 100
• Price-to-rent: 6.6×

Monthly cashflow live

• Estimated rent: $945 medium
• Mortgage (P&I): −$393
• Tax from tax record: −$69 /mo · $828/yr
• Insurance: −$31
• HOA: −$0
• Vacancy / Maint / Mgmt: −$198
• Net cashflow: $253

Break-even live

Break-even rent $625

Max offer price $75,000

Occupancy floor 68%

Sensitivity live

Price	-10% $295	-5% $274	+0% $253	+5% $231	+10% $210
Rent	-10% $178	-5% $215	+0% $253	+5% $290	+10% $327
Rate	-1.0pp $290	-0.5pp $272	base $253	+0.5pp $233	+1.0pp $213

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $18,750
• Closing costs: $2,250
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1870 W Pleasant St Unit 33 Knoxville, IA	2.0	1.0	740	$925	$1.25	44d	1	0.85mi

Listing history 1 events

1. 2026-05-12
   listed $75,000 Active 125-char remark

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $828 · $69/mo
• Projected year-2 tax: $1,003 · $84/mo
• Expected delta: +$175/yr (+$15/mo · 21.1%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Taxation est. · year 1

• Rental income: $11,336
• − Mortgage interest: −$4,201
• − Property taxes: −$828
• − Insurance: −$375
• − Repairs & maintenance: −$907
• − Management: −$907
• − Depreciation: −$2,182
• Taxable income: $1,936
• Est. tax owed @ 24.0%: −$465
• After-tax cash flow: $2,568/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Knoxville Community School District
• NCES district ID: 1915840
• Math proficiency: 62% ▼ -6.00%
• Reading proficiency: 63% ▬ 0.00%
• Median HH income: $49,594
• Composite: 53.11/100
• National rank: #1512
• State rank: #220 of 289 in IA

Livability — Knoxville

• Score: 69/100
• State rank: #406
• US rank: #8643

Category grades

Amenities F Commute F Cost of living A+ Crime C Employment C Housing A+ Health & safety A+ User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Knoxville, IA
• County: Marion County · 25,533 people
• City population: 11,117
• Metro: Pella, IA
• Population (ZIP): 11,117
• Household income: $74,693
• Rent vs Own: 19.1% rent · 80.9% own
• Severe rent burden: 122.0

Population outlook (Marion County) Hauer SSP2

• Today (2025): 32,883 people
• By 2030: 32,685 · -0.6%
• By 2040: 31,892 · -3.0%
• By 2050: 30,691 · -6.7%
• By 2075: 27,610 · -16.0%
• By 2100: 23,851 · -27.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (94%)
• Race & ethnicity: White 94% Two or more races 3% Hispanic / Latino 2%
• Common ancestry: Iranian 12% Portuguese 4% Italian 4%
• Foreign-born: 1% · Philippines, Canada
• Languages at home: 99% English-only · Spanish 1%

Political lean MEDSL · Marion

• 2024 margin: Solid R (+37.8) · D 30.4% · R 68.2% · Other 1.4%
• 2008→2024 swing: -27.0pp toward R · 2008: -10.8pp · 2024: -37.8pp
• All cycles: 2024: R+37.8 2020: R+33.7 2016: R+31.2 2012: R+13.3 2008: R+10.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -80.37%
• Current HPI: 237.7055
• Rent YoY: —
• Metro: Pella, IA
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Property tax history

+4.7%/yr

Latest (2022): $828 · +1.2% YoY. Source: county tax records.