433 S Franklin St

Newell, IA 50568

$49,900B+

3 bd · 2.0 ba · 1,678 sqft · Built 1910 · SingleFamily · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $800/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$171
• HOA: −$0
• Vac / Maint / Mgmt: −$168
• Net cashflow: $199/mo
• Annual: $2,388/yr
• Cap rate: 11.08%
• Cash-on-cash: 17.09%
• DSCR: 1.76
• 1% rule: 1.60%
• Cash to close: $13,972

Investor read

• This is a 3-bed/2.0-bath single-family listed at $50k.
• At list price, monthly cash flow is $199 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($800 rent vs $50k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($345 loan paydown + $2k appreciation (4.8% local appreciation)).
• Location reads 68/100 on livability (#434 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Newell-Fonda Community School District (rural): math 61% / reading 71% proficiency, ranked #186 of 289 in IA (top 64%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Newell-Fonda Elementary (math 67% / reading 62%, grade B, #317 of 616 statewide, top 58%, 289 students, 50% FRL); Newell-Fonda Middle Sch. (math 57% / reading 67%, grade B+, #175 of 246 statewide, top 72%, 123 students, 42% FRL); Newell-Fonda High School (math 57% / reading 77%, grade B, #192 of 336 statewide, top 59%, 166 students, 42% FRL).
• Watch-outs: property tax is 3.6% of price; built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 9 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 164 units permitted in Buena Vista County in 2024 (71 in 5+ unit buildings).
• Buena Vista County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $34k; 47% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (4.8% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1910 — 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 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.
• 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.