503 W Olesen Thu St

Graettinger, IA 51342

$129,900F

2 bd · 1.0 ba · 929 sqft · Built 1964 · SingleFamily · Pending · 29 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $878/mo
• Mortgage (P&I): −$681
• Tax + insurance: −$124
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $-112/mo
• Annual: $-1,346/yr
• Cap rate: 5.26%
• Cash-on-cash: -3.70%
• DSCR: 0.84
• 1% rule: 0.68%
• Cash to close: $36,372

Investor read

• This is a 2-bed/1.0-bath single-family listed at $130k.
• At list price, monthly cash flow is $-112 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $110k (15.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $88k (32.4% below list).
• It's been on market 29 days — a 2% lower offer ($128k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $88k (32.4% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($898 loan paydown + $6k appreciation (4.6% local appreciation)).
• Location reads 75/100 on livability (#210 in IA, #3,851 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, amenities F, commute F.
• Graettinger-Terril Community School District (rural): math 57% / reading 66% proficiency, ranked #235 of 289 in IA (top 81%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 9 active listings in the ZIP; 19 units permitted in Palo Alto County in 2024 (0 in 5+ unit buildings).
• Palo Alto County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $55k; list at $130k implies a 136% gain — meaningful room to come down on a strong offer.
• By year 6, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1964 — 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.
• 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.
• 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.