404 5th St SW

Hampton, IA 50441

$139,500D+

3 bd · 3.0 ba · 2,310 sqft · Built 1974 · SingleFamily · Pending · 94 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,010/mo
• Mortgage (P&I): −$732
• Tax + insurance: −$246
• HOA: −$0
• Vac / Maint / Mgmt: −$212
• Net cashflow: $-179/mo
• Annual: $-2,147/yr
• Cap rate: 4.75%
• Cash-on-cash: -5.50%
• DSCR: 0.76
• 1% rule: 0.72%
• Cash to close: $39,060

Investor read

• This is a 3-bed/3.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $-179 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $108k (22.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (27.6% below list).
• It's been on market 94 days — a 9% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (27.6% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($964 loan paydown + $14k appreciation (10.0% local appreciation)).
• Location reads 72/100 on livability (#304 in IA) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: employment D+, amenities F, commute F.
• Hampton-Dumont Community School District (rural): math 56% / reading 65% proficiency, ranked #243 of 289 in IA (top 84%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: South Side Elementary School (math 62% / reading 57%, grade B-, #390 of 616 statewide, top 69%, 312 students, 58% FRL); Hampton-Dumont Middle School (math 60% / reading 65%, grade B+, #174 of 246 statewide, top 71%, 363 students, 58% FRL); Hampton-Dumont High School (math 46% / reading 68%, grade C, #279 of 336 statewide, top 85%, 480 students, 52% FRL).
• Market conditions: 35 active listings in the ZIP; 2 units permitted in Franklin County in 2024 (0 in 5+ unit buildings).
• Franklin County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• It's been on market 94 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1974 — 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.
• 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.