505 E Ave · Rock Rapids, IA 51246

$120,000

3 bd · 2.0 ba · 2,016 sqft · SingleFamily · 309 Days on market

Built 2013 Fair condition 0.34 ac lot $60/sqft · 42% below area Est $207k · 42% under

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Why this score? — see what drove the D+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +11.5/30.0
• Schools +6.9/10.0
• Livability +4.2/5.0
• DSCR +3.4/10.0
• 1% rule +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Key facts

• 0.34 acre lot
• Built 2013
• Listed 309 days

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $120k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $-41 ($-486/yr) — negative.
• To cash-flow at today's rent, offer at most $114k (4.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $100k (16.8% below list).
• Recommended offer: $100k (16.8% below list) — sets the bar for 1% rule.
• Cap rate 5.9% vs local median 1.4% in Rock Rapids — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 83/100 on livability (#41 in IA, #1,035 nationally) — a professional / high-income tenant draw. Strengths: schools A+, crime A+, cost of living A+; Watch: amenities F, commute F.
• Central Lyon Community School District (rural): math 79% / reading 84% proficiency, ranked #25 of 289 in IA (top 9%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Market conditions: 40 active listings in the ZIP; 54 units permitted in Lyon County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 309 days — a 12% lower offer ($106k) is reasonable based on typical stale-listing flexibility.

Recommended offer $99,843 (16.8% below list)

Questions for the listing agent

1. 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?
2. It's been on market 309 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
3. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. Schools are A-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?
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 0.83% ✗
• Cap rate: 5.89%
• Cash-on-cash: -1.45%
• DSCR: 0.94
• GRM: 10.0

CMA / ARV

• ARV (median comp): $207,469
• List price: $120,000
• Delta: -42.16%
• Verdict: UNDERPRICED
• Comps: 18 within 1.0 mi

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
809 S Tama St	0.61mi	3/2.0	1,924 (-5%)	8mo	$230,000	$120	57
1002 S Tama	0.67mi	2/3.0 (-1)	2,044 (+1%)	3mo	$315,000	$154	55
211 S Tama St	0.55mi	3/3.0	1,992 (-1%)	17mo	$215,000	$108	54
1009 S Tama St	0.73mi	4/2.0 (+1)	2,166 (+7%)	2mo	$243,000	$112	47
1006 S Marshall St	0.73mi	4/2.0 (+1)	2,159 (+7%)	6mo	$235,000	$109	44
404 S Tama St	0.49mi	3/1.5	1,832 (-9%)	21mo	$162,000	$88	42

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -18.7%
• Equity multiple: 0.34×
• Total profit: $-22,012
• Equity at exit: $17,892

10-year hold

• IRR: -11.1%
• Equity multiple: 0.33×
• Total profit: $-22,430
• Equity at exit: $10,375

Cash invested: $33,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State Iowa: 83 Strongly Landlord-Friendly · R+6
• County: — inherits STATE
• City: — inherits STATE

3-day pay-or-quit; mostly landlord-friendly statewide.

Methodology + full state rankings →

ZIP-level market 51246

• Home prices YoY: -18.1%
• Active inventory: 40
• Price-to-rent: 10.0×

Monthly cashflow live

• Estimated rent: $998 medium
• Mortgage (P&I): −$629
• Tax est. 1.5%: −$150 /mo · $1,800/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$210
• Net cashflow: $-41

Break-even live

Break-even rent $1,050

Max offer price $114,135

Occupancy floor 99%

Sensitivity live

Price	-10% $42	-5% $1	+0% $-41	+5% $-82	+10% $-123
Rent	-10% $-119	-5% $-80	+0% $-41	+5% $-1	+10% $38
Rate	-1.0pp $20	-0.5pp $-10	base $-41	+0.5pp $-72	+1.0pp $-103

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $30,000
• Closing costs: $3,600
• Reserves months: —
• Total cash needed: —

Listing history 17 events

1. 2026-06-21
   days on market $120,000 Active 309 DOM
2. 2026-06-18
   days on market $120,000 Active 307 DOM
3. 2026-06-17
   days on market $120,000 Active 306 DOM
4. 2026-06-16
   days on market $120,000 Active 305 DOM
5. 2026-06-15
   days on market $120,000 Active 304 DOM
6. 2026-06-13
   days on market $120,000 Active 302 DOM
7. 2026-06-12
   days on market $120,000 Active 301 DOM
8. 2026-06-09
   days on market $120,000 Active 298 DOM
9. 2026-06-08
   days on market $120,000 Active 297 DOM
10. 2026-06-07
    days on market $120,000 Active 296 DOM
11. 2026-06-05
    days on market $120,000 Active 294 DOM
12. 2026-06-04
    days on market $120,000 Active 292 DOM
13. 2026-06-02
    days on market $120,000 Active 291 DOM
14. 2026-06-01
    days on market $120,000 Active 290 DOM
15. 2026-05-31
    days on market $120,000 Active 289 DOM
16. 2026-05-31
    days on market $120,000 Active 288 DOM
17. 2025-08-15
    listed $120,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,981
• − Mortgage interest: −$6,722
• − Property taxes: −$1,800
• − Insurance: −$600
• − Repairs & maintenance: −$958
• − Management: −$958
• − Depreciation: −$3,491
• Taxable loss: −$2,549
• Est. tax savings @ 24.0%: +$612
• After-tax cash flow: $125/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 1 photo

Fair 45/100 Moderate rehab

The home requires moderate repairs to the exterior siding and some landscaping, with both resale and rental value improvements possible through these updates.

Repairs flagged

• Major exterior siding — Significant weathering and discoloration
• Minor landscaping — Overgrown vegetation

Value-add opportunities

• Resale paint exterior walls — Fresh paint enhances curb appeal
• Rental landscaping — Well-maintained landscaping attracts tenants

Renovation cost estimate screening

Repair item	Severity	Est. cost
exterior siding · Significant weathering and discoloration	Major	$15,000–50,000
landscaping · Overgrown vegetation	Minor	$500–3,000
Total estimated repair cost · 2 items		$15,500–53,000

Value-add ROI direction

• Resale paint exterior walls — Fresh paint enhances curb appeal ↑
• Rental landscaping — Well-maintained landscaping attracts tenants ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Central Lyon Community School District
• NCES district ID: 1906960
• Math proficiency: 79% ▼ -1.00%
• Reading proficiency: 84% ▲ 9.00%
• Median HH income: $52,612
• Composite: 69.14/100
• National rank: #320
• State rank: #25 of 289 in IA

Livability — Rock Rapids

• Score: 83/100
• State rank: #41
• US rank: #1035

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment B- Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rock Rapids, IA
• City population: 4,075
• Population (ZIP): 4,075

Population outlook (Lyon County) Hauer SSP2

• Today (2025): 11,776 people
• By 2030: 11,706 · -0.6%
• By 2040: 11,654 · -1.0%
• By 2050: 11,573 · -1.7%
• By 2075: 11,046 · -6.2%
• By 2100: 9,712 · -17.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (94%)
• Race & ethnicity: White 94% Two or more races 5% Hispanic / Latino 5%
• Common ancestry: Iranian 32% Portuguese 4% Scottish 2%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 3%

Political lean MEDSL · Lyon

• 2024 margin: Solid R (+69.8) · D 14.7% · R 84.5%
• 2008→2024 swing: -24.8pp toward R · 2008: -45.0pp · 2024: -69.8pp
• All cycles: 2024: R+69.8 2020: R+67.6 2016: R+67.4 2012: R+54.9 2008: R+45.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.98%
• Current HPI: 193.8893
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.48%
• F500 in state: 4

Industry mix (Fortune 500 HQ in IA)

Industry	F500 HQs	Revenue
▸Financial Services	1	$16B
▸Retail / Convenience	1	$15B

Price history

1 event — show timeline

• 2025-08-15 Listed $120,000 NORTHSTARMLS as Distributed by MLS Grid