106 W Main St

Brighton, IA 52540

$37,000B+

2 bd · 1.0 ba · 1,424 sqft · Built 1900 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,066/mo
• Mortgage (P&I): −$194
• Tax + insurance: −$159
• HOA: −$0
• Vac / Maint / Mgmt: −$224
• Net cashflow: $489/mo
• Annual: $5,869/yr
• Cap rate: 22.16%
• Cash-on-cash: 56.65%
• DSCR: 3.52
• 1% rule: 2.88%
• Cash to close: $10,360

Investor read

• This is a 2-bed/1.0-bath single-family listed at $37k.
• At list price, monthly cash flow is $489 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $37k).
• It's been on market 15 days — a 2% lower offer ($36k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $36k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($256 loan paydown + $1k appreciation (3.0% local appreciation)).
• Location reads 61/100 on livability (#781 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Washington Community School District (town): math 53% / reading 62% proficiency, ranked #254 of 289 in IA (top 88%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Stewart Elementary School (481 students, 48% FRL); Washington Middle School (math 52% / reading 62%, grade B, #196 of 246 statewide, top 80%, 350 students, 53% FRL); Washington High School (math 55% / reading 67%, grade C+, #258 of 336 statewide, top 78%, 471 students, 48% FRL).
• Watch-outs: property tax is 4.7% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 42 units permitted in Washington County in 2024 (12 in 5+ unit buildings).
• Washington County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts since 4y 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 $10k cash investment doubles in ~2 years — 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?
• 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 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.