2107 265th St

Winterset, IA 50273

$2D+

3 bd · 2.0 ba · 1,440 sqft · Built 2000 · SingleFamily · Active · 120 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,550/mo
• Mortgage (P&I): −$0
• Tax + insurance: −$0
• HOA: −$0
• Vac / Maint / Mgmt: −$326
• Net cashflow: $1,225/mo
• Annual: $14,695/yr
• Cap rate: 734750.14%
• Cash-on-cash: 2624085.17%
• DSCR: 116758.02
• 1% rule: 77505.50%
• Cash to close: $1

Investor read

• This is a 3-bed/2.0-bath single-family listed at $2.
• At list price, monthly cash flow is $1k ($15k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $2).
• It's been on market 120 days — a 9% lower offer ($1) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1 (50.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $0 of loan paydown is wiped out by about $0 of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#139 in IA, #2,547 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Winterset Community School District (town): math 73% / reading 69% proficiency, ranked #123 of 289 in IA (top 43%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Winterset Elementary School (math 82% / reading 47%, grade B, #317 of 616 statewide, top 58%, 499 students, 32% FRL); Winterset Middle School (math 72% / reading 74%, grade A, #87 of 246 statewide, top 36%, 358 students, 35% FRL); Winterset Senior High School (math 71% / reading 72%, grade B+, #134 of 336 statewide, top 41%, 565 students, 35% FRL).
• Market conditions: 122 active listings in the ZIP; 125 units permitted in Madison County in 2024 (51 in 5+ unit buildings).
• Madison 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 $1 cash investment doubles in ~1 year — after that, you're playing with house money.
• Cap rate 734750.1% vs local median 2.2% in Winterset — 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.

Questions for listing agent

• It's been on market 120 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• 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.
• 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?
• 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.