50 W Broadway St

Central City, IA 52214

$439,000B-

None bd · None ba · 5,000 sqft · Built 1960 · MultiFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,671/mo
• Mortgage (P&I): −$2,302
• Tax + insurance: −$732
• HOA: −$0
• Vac / Maint / Mgmt: −$1,191
• Net cashflow: $1,446/mo
• Annual: $17,355/yr
• Cap rate: 10.25%
• Cash-on-cash: 14.12%
• DSCR: 1.63
• 1% rule: 1.29%
• Cash to close: $122,920

Investor read

• This is a 2×1bd/1ba + 2×2bd/1ba + 2×3bd/1ba units multifamily listed at $439k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $241/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $439k).
• It's been on market 55 days — a 3% lower offer ($426k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $426k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#234 in IA, #4,445 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Central City Community School District (rural): math 56% / reading 64% proficiency, ranked #236 of 289 in IA (top 82%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Central City Elementary School (math 57% / reading 57%, grade C+, #436 of 616 statewide, top 74%, 185 students, 35% FRL); Central City High School (math 55% / reading 68%, grade B-, #255 of 336 statewide, top 76%, 228 students, 29% FRL).
• Market conditions: 15 active listings in the ZIP; 1,023 units permitted in Linn County in 2024 (456 in 5+ unit buildings).
• Linn County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 9y 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $123k cash investment doubles in ~9 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 55 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1960 — 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?
• 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.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — Worn and dated
• Moderate: Bathroom fixtures — Worn and dated
• Minor: Landscaping — Overgrown areas