507 E Dallas St St · Montezuma, IA 50171

$127,500

2 bd · 1.0 ba · 924 sqft · SingleFamily public records · 30 Days on market

Built 1900 0.40 ac lot Est $130k · at est.

---

Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Appreciation +10.0/10.0
• ARV discount +8.5/15.0
• Cash flow +8.2/30.0
• Schools +6.5/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +2.2/10.0
• 1% rule +1.9/10.0

Listing remarks

This charming and meticulously restored home is truly 'Turn-Key'. The home features gleaming, refinished original hardwood floors throughout, refinished cabinetry with original hardware in the kitchen boasting a new counter top and sink. All new windows have been installed between 2008-2025 boasting tons of natural light, new roof in 2019, all new wiring/electric, modern furnace/ac, attic insulation and a fully remodeled bathroom since current ownership. In 2025 this home received another revamp with all new interior paint, spray foamed walls in the basement for improved efficiency and prevention of moisture infiltration, a new water heater, and new porch windows. With a full basement feat

Key facts

• 0.4 acre lot
• Garage
• Built 1900

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $128k.

Deal economics

• At list price, monthly cash flow is $-122 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $106k (16.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $89k (30.5% below list).
• Recommended offer: $89k (30.5% below list) — sets the bar for 1% rule.
• Cap rate 5.1% vs local median 1.5% in Montezuma — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 75/100 on livability (#228 in IA, #4,319 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment F.
• Montezuma Community School District (rural): math 73% / reading 79% proficiency, ranked #55 of 289 in IA (top 19%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Montezuma Elementary School (math 92% / reading 77%, grade A+, #31 of 616 statewide, top 6%, 229 students, 34% FRL); Montezuma Junior High School (math 62% / reading 72%, grade A-, #140 of 246 statewide, top 60%, 112 students, 39% FRL); Montezuma High School (math 67% / reading 87%, grade A-, #60 of 336 statewide, top 21%, 148 students, 28% FRL).
• Market conditions: 67 active listings in the ZIP; 27 units permitted in Poweshiek County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $14k of equity ($882 loan paydown + $13k appreciation (10.0% local appreciation)).
• Poweshiek County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 30 days — a 2% lower offer ($126k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $55k; list at $128k implies a 132% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $88,564 (30.5% below list)

Questions for the listing agent

1. 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?
2. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 0.69% ✗
• Cap rate: 5.15%
• Cash-on-cash: -4.09%
• DSCR: 0.82
• GRM: 12.0

CMA / ARV

• ARV (on-the-fly): $130,284
• Comps found: 6

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
507 E Dallas St St	0.00mi	2/1.0	924 (0%)	2mo	$127,500	$138	98
606 S 4th St	0.29mi	2/1.0	909 (-2%)	12mo	$128,000	$141	73
201 N 8th St	0.25mi	2/1.0	1,014 (+10%)	10mo	$142,000	$140	64
501 E Washington St	0.21mi	1/1.5 (-1)	960 (+4%)	17mo	$200,000	$208	63
106 E Harrison St	0.43mi	3/1.0 (+1)	1,056 (+14%)	13mo	$96,000	$91	40
306 W Madison St	0.56mi	3/1.0 (+1)	1,056 (+14%)	22mo	$170,000	$161	27

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 21.4%
• Equity multiple: 2.73×
• Total profit: $61,672
• Equity at exit: $114,862

10-year hold

• IRR: 19.3%
• Equity multiple: 6.26×
• Total profit: $187,658
• Equity at exit: $247,704

Cash invested: $35,700 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 50171

• Home prices YoY: 9.3%
• Active inventory: 67
• Price-to-rent: 12.0×

Monthly cashflow live

• Estimated rent: $886 medium
• Mortgage (P&I): −$669
• Tax from tax record: −$100 /mo · $1,194/yr
• Insurance: −$53
• HOA: −$0
• Vacancy / Maint / Mgmt: −$186
• Net cashflow: $-122

Break-even live

Break-even rent $1,040

Max offer price $106,020

Occupancy floor —

Sensitivity live

Price	-10% $-49	-5% $-86	+0% $-122	+5% $-158	+10% $-194
Rent	-10% $-192	-5% $-157	+0% $-122	+5% $-87	+10% $-52
Rate	-1.0pp $-57	-0.5pp $-89	base $-122	+0.5pp $-155	+1.0pp $-188

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $31,875
• Closing costs: $3,825
• Reserves months: —
• Total cash needed: —

Listing history 3 events

1. 2026-03-27
   status Pending
2. 2026-02-24
   listed $127,500 Active
3. 2011-03-09
   soldstatus $55,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast IA · Partial reset (capped growth)

• Current annual tax: $1,194 · $100/mo
• Projected year-2 tax: $1,598 · $133/mo
• Expected delta: +$404/yr (+$34/mo · 33.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 3/10 Moderate 7 d/yr ≥103°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,628
• − Mortgage interest: −$7,142
• − Property taxes: −$1,194
• − Insurance: −$638
• − Repairs & maintenance: −$850
• − Management: −$850
• − Depreciation: −$3,709
• Taxable loss: −$3,755
• Est. tax savings @ 24.0%: +$901
• After-tax cash flow: $-558/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Montezuma Community School District
• NCES district ID: 1919590
• Math proficiency: 73% ▼ -6.00%
• Reading proficiency: 79% ▲ 3.00%
• Median HH income: $57,449
• Composite: 65.04/100
• National rank: #503
• State rank: #55 of 289 in IA

Livability — Montezuma

• Score: 75/100
• State rank: #228
• US rank: #4319

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment F Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montezuma, IA
• City population: 2,445
• Population (ZIP): 2,445

Population outlook (Poweshiek County) Hauer SSP2

• Today (2025): 18,601 people
• By 2030: 18,342 · -1.4%
• By 2040: 17,944 · -3.5%
• By 2050: 18,029 · -3.1%
• By 2075: 19,945 · +7.2%
• By 2100: 22,637 · +21.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 5% Hispanic / Latino 3%
• Common ancestry: Iranian 5% Portuguese 5% Lithuanian 3%
• Foreign-born: 1% · Canada, Jamaica
• Languages at home: 98% English-only · Spanish 2%

Political lean MEDSL · Poweshiek

• 2024 margin: R (+17.0) · D 40.8% · R 57.8% · Other 1.5%
• 2008→2024 swing: -28.7pp toward R · 2008: 11.8pp · 2024: -17.0pp
• All cycles: 2024: R+17.0 2020: R+13.3 2016: R+6.8 2012: D+9.1 2008: D+11.8

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 30.91%
• Current HPI: 364.6554
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

+131.8% since first listed

3 events — show timeline

• 2026-03-27 Pending — IAR
• 2026-02-24 Listed $127,500 IAR
• 2011-03-09 Sold (Public Records) $55,000 Public Records

Property tax history

+4.8%/yr

Latest (2025): $1,194 · -5.2% YoY. Source: county tax records.