530 Maple St

Melvin, IA 51350

$137,500C-

3 bd · 2.0 ba · 1,680 sqft · Built 1956 · SingleFamily · Under Contract · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,198/mo
• Mortgage (P&I): −$721
• Tax + insurance: −$173
• HOA: −$0
• Vac / Maint / Mgmt: −$252
• Net cashflow: $53/mo
• Annual: $632/yr
• Cap rate: 6.75%
• Cash-on-cash: 1.64%
• DSCR: 1.07
• 1% rule: 0.87%
• Cash to close: $38,500

Investor read

• This is a 3-bed/2.0-bath single-family listed at $138k.
• At list price, monthly cash flow is $53 ($632/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (12.8% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $120k (12.8% below list) — sets the bar for 1% rule.
• In year one you build about $3k of equity ($951 loan paydown + $2k appreciation (1.3% local appreciation)).
• Location reads 63/100 on livability (#662 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, schools F, amenities F.
• Hartley-Melvin-Sanborn Community School District (rural): math 72% / reading 73% proficiency, ranked #111 of 289 in IA (top 38%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 4 active listings in the ZIP; 8 units permitted in Osceola County in 2024 (0 in 5+ unit buildings).
• Osceola County population projected at -32% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $92k; 49% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~8 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1956 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.