702 14th Ave

Eldora, IA 50627

$9,900D+

3 bd · 1.0 ba · 987 sqft · Built 1900 · SingleFamily · Pending · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $875/mo
• Mortgage (P&I): −$52
• Tax + insurance: −$35
• HOA: −$0
• Vac / Maint / Mgmt: −$184
• Net cashflow: $605/mo
• Annual: $7,254/yr
• Cap rate: 79.57%
• Cash-on-cash: 261.71%
• DSCR: 12.64
• 1% rule: 8.84%
• Cash to close: $2,772

Investor read

• This is a 3-bed/1.0-bath single-family listed at $10k.
• At list price, monthly cash flow is $605 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($875 rent vs $10k).
• It's been on market 31 days — a 3% lower offer ($10k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $10k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $68 of loan paydown is wiped out by about $297 of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#336 in IA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Eldora-New Providence Community School District (rural): math 60% / reading 66% proficiency, ranked #217 of 289 in IA (top 75%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Eldora-New Providence Elementary School (math 62% / reading 57%, grade B-, #390 of 616 statewide, top 69%, 280 students, 45% FRL); South Hardin High School (math 57% / reading 72%, grade B-, #211 of 336 statewide, top 70%, 242 students, 43% FRL) — zoned schools at 44% FRL track the district average.
• Watch-outs: property tax is 3.7% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 30 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 6 units permitted in Hardin County in 2024 (0 in 5+ unit buildings).
• Hardin County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 2y ago; this cycle's ask has dropped $3k (21%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $3k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.