205 N Lincoln Ave

Alta Vista, IA 50603

$75,000B+

3 bd · 1.5 ba · 1,105 sqft · Built 1954 · SingleFamily · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,041/mo
• Mortgage (P&I): −$393
• Tax + insurance: −$97
• HOA: −$0
• Vac / Maint / Mgmt: −$219
• Net cashflow: $332/mo
• Annual: $3,978/yr
• Cap rate: 11.60%
• Cash-on-cash: 18.94%
• DSCR: 1.84
• 1% rule: 1.39%
• Cash to close: $21,000

Investor read

• This is a 3-bed/1.5-bath single-family listed at $75k.
• At list price, monthly cash flow is $332 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $75k).
• It's been on market 27 days — a 2% lower offer ($74k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $74k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($519 loan paydown + $962 appreciation (1.3% local appreciation)).
• Location reads 65/100 on livability (#573 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• New Hampton Community School District (town): math 76% / reading 73% proficiency, ranked #84 of 289 in IA (top 29%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: New Hampton Elementary School (math 67% / reading 52%, grade B-, #390 of 616 statewide, top 69%, 401 students, 33% FRL); New Hampton Middle School (math 83% / reading 76%, grade A+, #35 of 246 statewide, top 16%, 279 students, 34% FRL); New Hampton High School (math 75% / reading 79%, grade A-, #60 of 336 statewide, top 21%, 339 students, 28% FRL).
• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 6 units permitted in Chickasaw County in 2024 (0 in 5+ unit buildings).
• Chickasaw County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $58k; 29% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1954 — 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?
• 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.