OFFERING MEMORANDUM
Quiet Cove
Apartments
1806 Main Street · Gowrie, Iowa 50543
$459,900
Asking Price
11 Units
Multifamily
8.83%
Year 1 Cap Rate
90.9%
Occupied
9,214 SF
Building Size
Investment Highlights
Why Quiet Cove
Six compelling reasons this property stands out in the rural Iowa multifamily market.
$459,900
Asking Price
$41,809 per unit
8.83%
Year 1 Cap Rate
At asking price — spreadsheet NOI
90.9%
Current Occupancy
10 of 11 units leased
No Inspection
City Program
Zero regulatory burden in Gowrie
$5,026/yr
Property Taxes
$457 per unit — low rural rate
12th Unit
Value-Add Upside
$20K community room conversion
Property Overview
The Asset
11-unit multifamily complex with effective age 1999, owner-paid utilities, and on-site laundry.
| Address | 1806 Main Street, Gowrie, IA 50543 |
| Property Type | Multifamily Residential |
| Total Units | 11 (10 One-BR + 1 Two-BR) |
| Building Size | 9,214 SF |
| Lot Size | 1.14 Acres |
| Effective Age | 1999 |
| Parking | Off-Street Parking Available |
| Laundry | On-Site Laundry Facility |
| Utilities | Owner Pays Gas, Electric, Water/Sewer |
| Heating | Natural Gas |
| Occupancy | 90.9% (10 of 11 Units Leased) |
| Asking Price | $459,900 |
| Price Per Unit | $41,809 |
| MLS # | I28713A (Active) |
| Zoning | Residential Multifamily |
Location Advantage
Gowrie, Iowa
Medical corridor, industrial anchor, low taxes, no inspection program — a rare combination.
Medical Corridor — Same Block
Gowrie Eye Clinic, Gowrie Pharmacy, and the Community Hospital clinic are all located on or immediately adjacent to Main Street. Walkable healthcare access is a powerful tenant retention driver.
POET Biorefining — Local Employer
POET operates a 90-million-gallon-per-year ethanol facility in Gowrie, providing stable year-round industrial employment. POET employs 2,200+ nationwide with the Gowrie plant as a key regional anchor.
Fort Dodge — 18 Miles
Fort Dodge (pop. 24,000+) is 18 miles east on US-169, offering full retail, medical, and employment infrastructure. Small-town living with easy regional access.
No City Inspection Program
Gowrie has no mandatory rental inspection program. Zero compliance costs, no surprise violations, no forced capital expenditures — a rare advantage in today's regulatory environment.
Low Property Taxes
Year 1 taxes: $5,026 ($457/unit). Webster County rates are significantly below Iowa urban markets, directly improving NOI and effective yield.
US-169 Corridor Access
Direct highway access connects Gowrie to Fort Dodge, Ames, and Des Moines. The property sits on Main Street — the primary commercial and residential spine of the community.
Agriculture & Industry
Major grain elevator, farm supply, and co-op operations provide additional employment. Southeast Webster-Grand Community School District serves the area.
Recreation Nearby
Brushy Creek State Recreation Area and Dolliver Memorial State Park are nearby, offering outdoor amenities that attract quality long-term tenants.
Current Financials
Rent Roll & Income Statement
As of March 2026 — 10 of 11 units occupied (90.9%)
Current Rent Roll
| Unit | Type | Status | Actual Rent | Market Rent |
|---|---|---|---|---|
| #1 | 1 BR | Occupied | $625/mo | $625/mo |
| #2 | 2 BR | Occupied | $595/mo | $650/mo |
| #3 | 1 BR | Occupied | $725/mo | $725/mo |
| #4 | 1 BR | Occupied | $595/mo | $625/mo |
| #5 | 1 BR | Occupied | $595/mo | $625/mo |
| #6 | 1 BR | Occupied | $595/mo | $625/mo |
| #7 | 1 BR | Occupied | $700/mo | $700/mo |
| #8 | 1 BR | Occupied | $589/mo | $625/mo |
| #9 | 1 BR | Occupied | $595/mo | $625/mo |
| #10 | 1 BR | Occupied | $600/mo | $625/mo |
| #11 | 1 BR | Vacant | $0/mo | $625/mo |
| #12 | TBD | Future | — | $625/mo |
| TOTAL (11 Units) | $6,614/mo | $7,125/mo | ||
Trailing 12-Month Income Statement
| Line Item | Annual | Monthly |
|---|---|---|
| INCOME | ||
| Gross Potential Rent | $90,178.56 | $7,514.88 |
| Less: Vacancy (9.1%) | ($8,206.25) | ($683.85) |
| Effective Gross Rent | $81,972.31 | $6,831.03 |
| Extra Income | $6,309.96 | $525.83 |
| Laundry Income | $2,160.00 | $180.00 |
| Gross Operating Income | $90,442.27 | $7,536.86 |
| EXPENSES | ||
| Property Taxes | ($5,026.00) | ($418.83) |
| Insurance | ($9,143.00) | ($761.92) |
| Contract Services | ($3,600.00) | ($300.00) |
| Electric | ($5,303.52) | ($441.96) |
| Maintenance (5%) | ($4,098.61) | ($341.55) |
| Management (9.09%) | ($8,197.23) | ($683.10) |
| Water/Sewer | ($2,651.76) | ($220.98) |
| Gas | ($3,330.72) | ($277.56) |
| Total Expenses | ($41,350.85) | ($3,445.90) |
| NET OPERATING INCOME | $40,621.46 | $3,385.12 |
| Annual Debt Service | ($28,597.56) | ($2,383.13) |
| NOI After Debt Service | $12,023.90 | $1,001.99 |
| DSCR | 1.42x | |
5-Year Proforma
Financial Projections
Two scenarios: Base Case (11 units) and Value-Add (12th unit at $625/mo, $20K investment).
NOI vs. Appraisal Value — 5-Year Projection
- NOI
- Appraisal Value
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| INCOME | |||||
| Gross Potential Rent | $90,178.56 | $93,785.70 | $97,537.13 | $101,438.62 | $105,496.16 |
| Effective Gross Income | $81,972.31 | $85,251.20 | $88,661.25 | $92,207.70 | $95,896.01 |
| EXPENSES | |||||
| Total Expenses | $41,350.85 | $43,382.21 | $44,768.92 | $46,200.65 | $47,678.88 |
| NET OPERATING INCOME | $40,621.46 | $41,869.00 | $43,892.33 | $46,007.05 | $48,217.13 |
| Cap Rate on Ask | 8.83% | 9.10% | 9.54% | 10.00% | 10.48% |
| Appraisal @ 8.25% | $492,381.39 | $507,502.98 | $532,028.20 | $557,661.19 | $584,450.04 |
| Annual Debt Service | ($28,597.56) | ($28,597.56) | ($28,597.56) | ($28,597.56) | ($28,597.56) |
| NOI After Debt Service | $12,023.90 | $13,271.44 | $15,294.77 | $17,409.49 | $19,619.57 |
| DSCR | 1.42x | 1.46x | 1.53x | 1.61x | 1.69x |
Scenario Comparison: The Value-Add Case
$20,000
Conversion Cost
Community room → 12th unit
$82,171.77
Year 5 Value Premium
Additional property value created
4.1x
Value Creation Multiple
Return on $20K investment
| Metric | Scenario A (11 Units) | Scenario B (12 Units) | Advantage |
|---|---|---|---|
| Total Investment | $459,900 | $479,900 | +$20,000 |
| Year 1 NOI | $40,621.46 | $46,416.34 | +$5,794.88 |
| Year 5 NOI | $48,217.13 | $54,996.30 | +$6,779.17 |
| 5-Yr Cumulative NOI | $220,606.97 | $252,727.51 | +$32,120.54 |
| Year 5 Appraisal @ 8.25% | $584,450.04 | $666,621.81 | +$82,171.77 |
Market Context: Rural Iowa Multifamily
| Market | Cap Rate Range | Vacancy | Rent Growth | Notes |
|---|---|---|---|---|
| Des Moines (Class A) | 4.7–5.8% | ~6–8% | 2–3%/yr | High competition, low yield |
| Fort Dodge (per buyfd.co) | ~7.5% | ~6.2% | +3.1%/yr | Regional hub, stable |
| Rural Iowa / Webster County | 8–10% | 5–8% | 2–4%/yr | Strong workforce demand |
| Subject Property — Year 1 | 8.83% | 9.1% | 4.0%/yr | Spreadsheet basis |
| Subject Property — Year 5 | 10.48% | 9.1% | 4.0%/yr | Growing NOI, same ask |
Photo Gallery
Property Photos
All 16 property photos — click to enlarge.
Listing Agent
Scott Underberg
Broker Owner — Guthrie & Associates Real Estate
SU
Scott Underberg
Scott Underberg
Broker Owner — Guthrie & Associates Real Estate
Scott Underberg is the Broker Owner of Guthrie & Associates Real Estate, one of Iowa's most established independent real estate firms with roots dating to 1972. Operating from Fort Dodge, Iowa, Scott specializes in investment real estate across north-central and northwest Iowa, with deep expertise in multifamily, commercial, and agricultural properties.
Scott brings a hands-on, investor-focused approach to every transaction. His intimate knowledge of rural Iowa markets — including Webster, Humboldt, Calhoun, and surrounding counties — allows him to identify value-add opportunities that larger regional brokerages routinely overlook. He understands the unique dynamics of small-market multifamily: workforce housing demand, limited competition, low regulatory burden, and the outsized yield advantages that rural Iowa offers compared to urban markets.
As both a broker and an active participant in the Iowa investment real estate community, Scott provides clients with comprehensive market intelligence, honest underwriting, and transaction support from initial inquiry through closing. His firm, Guthrie & Associates, maintains an active portfolio of investment listings at buyfd.co — Iowa's dedicated investment property marketplace.
54+
Years in Business
buyfd.co
Investment Platform
Fort Dodge
Headquarters
Iowa-Wide
Market Coverage
Ready to Move Forward?
Contact Scott Today
Next Steps
Request Due Diligence Package
Leases, utility bills, insurance, inspection reports
Schedule Property Tour
24-hour notice required — appointment only
Submit Letter of Intent
To Scott Underberg at Guthrie & Associates
Close & Take Possession
At Closing / Negotiable
Listing Broker
Scott Underberg
Broker Owner
Phone
(515) 571-2761Website
buyfd.coOffice
1302 Central Ave, Fort Dodge, IA 50501