107 4th St

Grafton, IA 50440

$26,900C-

3 bd · 1.0 ba · 1,432 sqft · Built 1900 · SingleFamily · Pending · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,208/mo
• Mortgage (P&I): −$141
• Tax + insurance: −$48
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $766/mo
• Annual: $9,188/yr
• Cap rate: 40.45%
• Cash-on-cash: 121.99%
• DSCR: 6.43
• 1% rule: 4.49%
• Cash to close: $7,532

Investor read

• This is a 3-bed/1.0-bath single-family listed at $27k.
• At list price, monthly cash flow is $766 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $27k).
• It's been on market 15 days — a 2% lower offer ($26k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $26k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($186 loan paydown + $1k appreciation (4.0% local appreciation)).
• Location reads 65/100 on livability (#556 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, schools F, amenities F.
• St Ansgar Community School District (rural): math 84% / reading 82% proficiency, ranked #16 of 289 in IA (top 6%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP.
• At projected returns (4.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1900 — 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 F-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.