311 Hansen Ave

Palmer, IA 50571

$48,500B+

2 bd · 1.0 ba · 979 sqft · Built 1904 · Other · Active · 305 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $838/mo
• Mortgage (P&I): −$254
• Tax + insurance: −$29
• HOA: −$0
• Vac / Maint / Mgmt: −$176
• Net cashflow: $379/mo
• Annual: $4,547/yr
• Cap rate: 15.67%
• Cash-on-cash: 33.48%
• DSCR: 2.49
• 1% rule: 1.73%
• Cash to close: $13,580

Investor read

• This is a 2-bed/1.0-bath other listed at $48k.
• At list price, monthly cash flow is $379 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($838 rent vs $48k).
• It's been on market 305 days — a 12% lower offer ($43k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $43k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($335 loan paydown + $2k appreciation (4.6% local appreciation)).
• Location reads 60/100 on livability (#824 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: crime C-, employment C-, schools F.
• Pocahontas Area Community School District (rural): math 67% / reading 71% proficiency, ranked #166 of 289 in IA (top 57%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: built in 1904 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 1 units permitted in Pocahontas County in 2024 (0 in 5+ unit buildings).
• Current owner paid $40k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (4.6% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 305 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1904 — 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 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.