721 Center St E

Britt, IA 50423

$262,250D+

5 bd · 3.0 ba · 3,167 sqft · Built 1900 · SingleFamily · Active · 277 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,580/mo
• Mortgage (P&I): −$1,375
• Tax + insurance: −$385
• HOA: −$0
• Vac / Maint / Mgmt: −$332
• Net cashflow: $-512/mo
• Annual: $-6,143/yr
• Cap rate: 3.95%
• Cash-on-cash: -8.37%
• DSCR: 0.63
• 1% rule: 0.60%
• Cash to close: $73,430

Investor read

• This is a 5-bed/3.0-bath single-family listed at $262k.
• At list price, monthly cash flow is $-512 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (34.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $158k (39.8% below list).
• It's been on market 277 days — a 12% lower offer ($231k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $158k (39.8% below list) — sets the bar for 1% rule.
• In year one you build about $28k of equity ($2k loan paydown + $26k appreciation (10.0% local appreciation)).
• Location reads 79/100 on livability (#121 in IA, #2,262 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• West Hancock Community School District (rural): math 76% / reading 74% proficiency, ranked #77 of 289 in IA (top 27%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: West Hancock Elementary School (math 82% / reading 77%, grade A, #71 of 616 statewide, top 15%, 272 students, 37% FRL); West Hancock Middle School (math 72% / reading 72%, grade A, #95 of 246 statewide, top 42%, 165 students, 42% FRL); West Hancock High School (math 72% / reading 77%, grade B+, #89 of 336 statewide, top 30%, 162 students, 33% FRL) — zoned schools at 37% FRL track the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 22 active listings in the ZIP; 11 units permitted in Hancock County in 2024 (0 in 5+ unit buildings).
• Hancock County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 2, paydown + projected appreciation supports a ~$45k 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 277 days. Have you received any prior offers? Is the seller open to a 40% concession, seller financing, or rate buy-down credit?
• Built in 1900 — 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 B-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.