132 Elm St

Janesville, IA 50647

$17,500C-

4 bd · 2.0 ba · 1,668 sqft · Built 1870 · SingleFamily · Pending · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,329/mo
• Mortgage (P&I): −$92
• Tax + insurance: −$71
• HOA: −$0
• Vac / Maint / Mgmt: −$279
• Net cashflow: $887/mo
• Annual: $10,648/yr
• Cap rate: 67.14%
• Cash-on-cash: 217.31%
• DSCR: 10.67
• 1% rule: 7.59%
• Cash to close: $4,900

Investor read

• This is a 4-bed/2.0-bath single-family listed at $18k.
• At list price, monthly cash flow is $887 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $18k).
• It's been on market 22 days — a 2% lower offer ($17k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $17k (1.5% below list) — sets the bar for market timing.
• In year one you build about $219 of equity ($121 loan paydown + $98 appreciation (0.6% local appreciation)).
• Location reads 81/100 on livability (#58 in IA, #1,342 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Janesville Consolidated School District (rural): math 68% / reading 73% proficiency, ranked #118 of 289 in IA (top 41%) — strong family-tenant draw, lease renewals of 3-5y typical; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Janesville Elementary School (math 67% / reading 67%, grade B+, #273 of 616 statewide, top 51%, 267 students, 17% FRL); Janesville Junior-Senior High School (math 67% / reading 77%, grade B+, #117 of 336 statewide, top 39%, 237 students, 23% FRL).
• Watch-outs: property tax is 4.3% of price; built in 1870 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 30 active listings in the ZIP; 34 units permitted in Bremer County in 2024 (0 in 5+ unit buildings).
• Bremer County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts 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.
• At projected returns (0.6% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1870 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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?
• 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.