115 4th Ave W

Leland, IA 50453

$86,500B

3 bd · 1.0 ba · 842 sqft · Built 1945 · SingleFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,047/mo
• Mortgage (P&I): −$454
• Tax + insurance: −$106
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $268/mo
• Annual: $3,211/yr
• Cap rate: 10.00%
• Cash-on-cash: 13.26%
• DSCR: 1.59
• 1% rule: 1.21%
• Cash to close: $24,220

Investor read

• This is a 3-bed/1.0-bath single-family listed at $86k.
• At list price, monthly cash flow is $268 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $86k).
• It's been on market 18 days — a 2% lower offer ($85k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $85k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($598 loan paydown + $5k appreciation (5.6% local appreciation)).
• Location reads 63/100 on livability (#669 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: employment C-, health & safety C-, amenities F.
• Forest City Community School District (town): math 67% / reading 78% proficiency, ranked #111 of 289 in IA (top 38%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Forest City Elementary School (math 62% / reading 72%, grade B+, #273 of 616 statewide, top 51%, 487 students, 39% FRL); Forest City Middle School (math 69% / reading 83%, grade A, #59 of 246 statewide, top 26%, 330 students, 41% FRL); Forest City High School (math 66% / reading 75%, grade B+, #140 of 336 statewide, top 43%, 324 students, 35% FRL).
• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 6 units permitted in Winnebago County in 2024 (0 in 5+ unit buildings).
• Winnebago County population projected at -10% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (5.6% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1945 — 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.