86 S 1st St E

Downey, ID 83234

$249,500F

2 bd · 1.0 ba · 964 sqft · Built 1950 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,029/mo
• Mortgage (P&I): −$1,308
• Tax + insurance: −$154
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $-650/mo
• Annual: $-7,800/yr
• Cap rate: 3.17%
• Cash-on-cash: -11.16%
• DSCR: 0.50
• 1% rule: 0.41%
• Cash to close: $69,860

Investor read

• This is a 2-bed/1.0-bath single-family listed at $250k.
• At list price, monthly cash flow is $-650 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $135k (46.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $103k (58.8% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $103k (58.8% below list) — sets the bar for 1% rule.
• In year one you build about $21k of equity ($2k loan paydown + $19k appreciation (7.8% local appreciation)).
• Location reads 65/100 on livability (#138 in ID) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Marsh Valley Joint District (rural): math 49% / reading 62% proficiency, ranked #16 of 92 in ID (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Downey Elementary School (math 44% / reading 54%, grade D, #148 of 357 statewide, top 47%, 96 students, 38% FRL); Marsh Valley Middle School (math 47% / reading 57%, grade C+, #27 of 109 statewide, top 24%, 188 students, 25% FRL); Marsh Valley High School (math 27% / reading 62%, grade F, #61 of 169 statewide, top 41%, 405 students, 20% FRL) — zoned schools at 27% FRL track the district average.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 54 active listings in the ZIP; 325 units permitted in Bannock County in 2024 (6 in 5+ unit buildings).
• By year 2, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 1950 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.