2125 130th St

Earlham, IA 50072

$389,000D-

5 bd · 2.0 ba · 1,728 sqft · Built 1910 · SingleFamily · Active · 79 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,358/mo
• Mortgage (P&I): −$2,040
• Tax + insurance: −$408
• HOA: −$0
• Vac / Maint / Mgmt: −$285
• Net cashflow: $-1,375/mo
• Annual: $-16,501/yr
• Cap rate: 2.05%
• Cash-on-cash: -15.15%
• DSCR: 0.33
• 1% rule: 0.35%
• Cash to close: $108,920

Investor read

• This is a 5-bed/2.0-bath single-family listed at $389k.
• At list price, monthly cash flow is $-1k ($-17k/yr) — negative.
• To cash-flow at today's rent, offer at most $146k (62.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $136k (65.1% below list).
• It's been on market 79 days — a 6% lower offer ($366k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $136k (65.1% below list) — sets the bar for 1% rule.
• In year one you build about $42k of equity ($3k loan paydown + $39k appreciation (10.0% local appreciation)).
• Location reads 77/100 on livability (#164 in IA, #2,986 nationally) — a middle-class / working-renter tenant base. Strengths: schools A+, crime A+, employment A+; Watch: amenities F, commute F.
• Earlham Community School District (rural): math 75% / reading 72% proficiency, ranked #69 of 289 in IA (top 24%) — strong family-tenant draw, lease renewals of 3-5y typical; only 17% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 35 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.
• 7 sale attempts since 20y ago; this cycle's ask has dropped $36k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$67k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 79 days. Have you received any prior offers? Is the seller open to a 65% concession, seller financing, or rate buy-down credit?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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.