1007 12th St

Grundy Center, IA 50638

$167,500D

3 bd · 2.5 ba · 1,490 sqft · Built 1963 · Townhouse · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,109/mo
• Mortgage (P&I): −$878
• Tax + insurance: −$245
• HOA: −$0
• Vac / Maint / Mgmt: −$233
• Net cashflow: $-247/mo
• Annual: $-2,966/yr
• Cap rate: 4.52%
• Cash-on-cash: -6.32%
• DSCR: 0.72
• 1% rule: 0.66%
• Cash to close: $46,900

Investor read

• This is a 3-bed/2.5-bath townhouse listed at $168k.
• At list price, monthly cash flow is $-247 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $124k (26.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $111k (33.8% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $111k (33.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#68 in IA, #1,503 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Grundy Center Community School District (rural): math 80% / reading 85% proficiency, ranked #17 of 289 in IA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Grundy Center Elementary School (math 82% / reading 77%, grade A, #71 of 616 statewide, top 15%, 277 students, 34% FRL); Grundy Center Middle School (math 80% / reading 87%, grade A+, #11 of 246 statewide, top 4%, 212 students, 21% FRL); Grundy Center High School (math 77% / reading 87%, grade A, #20 of 336 statewide, top 7%, 235 students, 28% FRL).
• Market conditions: 35 active listings in the ZIP; 14 units permitted in Grundy County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 5y 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 $102k; list at $168k implies a 64% gain — meaningful room to come down on a strong offer.

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?
• Built in 1963 — 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.
• 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.
• 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.