1208 9th St

Hawarden, IA 51023

$124,850C+

3 bd · 1.5 ba · 1,982 sqft · Built 1905 · SingleFamily · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,137/mo
• Mortgage (P&I): −$655
• Tax + insurance: −$169
• HOA: −$0
• Vac / Maint / Mgmt: −$239
• Net cashflow: $75/mo
• Annual: $897/yr
• Cap rate: 7.01%
• Cash-on-cash: 2.56%
• DSCR: 1.11
• 1% rule: 0.91%
• Cash to close: $34,958

Investor read

• This is a 3-bed/1.5-bath single-family listed at $125k.
• At list price, monthly cash flow is $75 ($897/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 $114k (8.9% below list).
• It's been on market 26 days — a 2% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (8.9% below list) — sets the bar for 1% rule.
• In year one you build about $13k of equity ($864 loan paydown + $12k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#201 in IA, #3,671 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• West Sioux Community School District (rural): math 60% / reading 62% proficiency, ranked #239 of 289 in IA (top 83%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hawarden Elementary School (math 62% / reading 57%, grade B-, #390 of 616 statewide, top 69%, 196 students, 61% FRL); West Sioux Middle School (math 62% / reading 57%, grade B, #185 of 246 statewide, top 78%, 168 students, 56% FRL); West Sioux High School (math 57% / reading 72%, grade B-, #211 of 336 statewide, top 70%, 265 students, 51% FRL).
• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 14 active listings in the ZIP; 201 units permitted in Sioux County in 2024 (52 in 5+ unit buildings).
• Sioux County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1905 — 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.
• 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.