406 3rd Ave N · Lake Norden, SD 57248

$160,000

3 bd · 1.0 ba · 1,806 sqft · SingleFamily · 6 Days on market

Built 1918 Fair condition 7,405 sqft lot

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Why this score? — see what drove the C 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).

• Cash flow +18.6/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• DSCR +5.9/10.0
• 1% rule +5.0/10.0
• Schools +4.6/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0

Key facts

• Central ac
• New furnace
• Newer metal roof

Tags

• NEW FURNACE
• CENTRAL AC
• NEWER METAL ROOF
• NEWER HOT WATER HEATER
• NEWER ENERGY EFFICIENT WINDOWS
• DETACHED SINGLE STALL GARAGE

Property features AI

Exterior

• Parking: Detached garage (1 car)
• Home design: Single-family residence; One and one-half story
• Construction: Wood construction (roof includes metal and wood)
• Exterior features: Metal and wood roof; Lot roughly 0.17 acres (approx. 50 x 150)

Interior

• Kitchen: Refrigerator
• Flooring: Carpet; Linoleum
• Bathrooms: One full bathroom
• Interior features: Refrigerator included; Partial basement

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $160k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $157 ($2k/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 $160k (0.1% below list).
• Recommended offer: $160k (0.1% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 65/100 on livability (#142 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D+, schools F.
• Hamlin School District 28-3 (rural): math 55% / reading 51% proficiency, ranked #18 of 59 in SD (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 11 active listings in the ZIP; 56 units permitted in Hamlin County in 2024 (5 in 5+ unit buildings).

Forward outlook

• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (10.0% local appreciation)).
• Hamlin County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1918 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $159,781 (0.1% below list)

Questions for the listing agent

1. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
2. Built in 1918 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
5. Crime grade is D 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?
6. 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.
7. 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.
8. 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: 1.00% ✗
• Cap rate: 7.47%
• Cash-on-cash: 4.19%
• DSCR: 1.19
• GRM: 8.3

CMA / ARV

• ARV (on-the-fly): $102,942
• Comps found: 1

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
711 Burlington St	0.11mi	2/1.0 (-1)	1,760 (-2%)	9mo	$100,000	$57	78

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

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 27.3%
• Equity multiple: 3.17×
• Total profit: $97,135
• Equity at exit: $144,141

10-year hold

• IRR: 23.9%
• Equity multiple: 7.21×
• Total profit: $278,253
• Equity at exit: $310,845

Cash invested: $44,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State South Dakota: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

3-day notice; mostly landlord-friendly.

Methodology + full state rankings →

ZIP-level market 57248

• Home prices YoY: 9.6%
• Active inventory: 11
• Price-to-rent: 8.3×

Monthly cashflow live

• Estimated rent: $1,598 medium
• Mortgage (P&I): −$839
• Tax est. 1.5%: −$200 /mo · $2,400/yr
• Insurance: −$67
• HOA: −$0
• Vacancy / Maint / Mgmt: −$336
• Net cashflow: $157

Break-even live

Break-even rent $1,400

Max offer price $160,000

Occupancy floor 85%

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: $40,000
• Closing costs: $4,800
• Reserves months: —
• Total cash needed: —

Listing history 6 events

1. 2026-06-19
   days on market $160,000 Active 6 DOM
2. 2026-06-18
   days on market $160,000 Active 5 DOM
3. 2026-06-17
   days on market $160,000 Active 4 DOM
4. 2026-06-16
   days on market $160,000 Active 3 DOM
5. 2026-06-15
   days on market $160,000 Active 2 DOM
6. 2026-06-14
   listed $160,000 Active 1 DOM

ⓘ 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 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥98°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,174
• − Mortgage interest: −$8,962
• − Property taxes: −$2,400
• − Insurance: −$800
• − Repairs & maintenance: −$1,534
• − Management: −$1,534
• − Depreciation: −$4,655
• Taxable loss: −$711
• Est. tax savings @ 24.0%: +$171
• After-tax cash flow: $2,049/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 · 2 photos

Fair 45/100 Moderate rehab

This home requires significant exterior and interior repairs, including new siding, roof, flooring, and painting. Upgrading these areas would significantly increase its resale and rental value.

Repairs flagged

• Major siding — Severe weathering
• Major roof — Rusty metal roof
• Major flooring — Worn-out carpet
• Major interior walls — Painted walls with visible wear

Value-add opportunities

• Both new siding — Improves curb appeal and durability
• Both new roof — Enhances structural integrity and appearance
• Both new flooring — Updates interior and adds value
• Both paint interior walls — Fresh paint enhances interior aesthetics and value

Renovation cost estimate screening

Repair item	Severity	Est. cost
siding · Severe weathering	Major	$15,000–50,000
roof · Rusty metal roof	Major	$15,000–50,000
flooring · Worn-out carpet	Major	$15,000–50,000
interior walls · Painted walls with visible wear	Major	$15,000–50,000
Total estimated repair cost · 4 items		$60,000–200,000

Value-add ROI direction

• Both new siding — Improves curb appeal and durability ↑
• Both new roof — Enhances structural integrity and appearance ↑
• Both new flooring — Updates interior and adds value ↑
• Both paint interior walls — Fresh paint enhances interior aesthetics and value ↑

ⓘ 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: Hamlin School District 28-3
• NCES district ID: 4630800
• Math proficiency: 55% ▲ 2.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $53,528
• Composite: 45.64/100
• National rank: #2584
• State rank: #18 of 59 in SD

Livability — Lake Norden

• Score: 65/100
• State rank: #142
• US rank: #12795

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lake Norden, SD
• Population (ZIP): 1,150

Population outlook (Hamlin County) Hauer SSP2

• Today (2025): 6,108 people
• By 2030: 6,113 · +0.1%
• By 2040: 6,214 · +1.7%
• By 2050: 6,346 · +3.9%
• By 2075: 7,401 · +21.2%
• By 2100: 9,572 · +56.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 12%
• Common ancestry: Portuguese 15% Iranian 7% Scottish 2%
• Foreign-born: 8% · Canada
• Languages at home: 88% English-only · Spanish 11% German/W. Germanic 1%

Political lean MEDSL · Hamlin

• 2024 margin: Solid R (+60.5) · D 18.9% · R 79.4% · Other 1.7%
• 2008→2024 swing: -38.3pp toward R · 2008: -22.2pp · 2024: -60.5pp
• All cycles: 2024: R+60.5 2020: R+56.0 2016: R+54.2 2012: R+31.6 2008: R+22.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 38.24%
• Current HPI: 438.6
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 0.70%
• F500 in state: 2

Industry mix (Fortune 500 HQ in SD)

Industry	F500 HQs	Revenue
▸Utilities	1	$1B

Price history

1 event — show timeline

• 2026-06-12 Listed $160,000 NESD