125, 205, 215 19th St SE

Minot, ND 58701

$1,400,000F

66 bd · 33.0 ba · 5,762 sqft · Built 1960 · MultiFamily · Pending · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,208/mo
• Mortgage (P&I): −$7,342
• Tax + insurance: −$1,081
• HOA: −$0
• Vac / Maint / Mgmt: −$674
• Net cashflow: $-5,889/mo
• Annual: $-70,667/yr
• Cap rate: 1.29%
• Cash-on-cash: -17.86%
• DSCR: 0.21
• 1% rule: 0.23%
• Cash to close: $392,000

Investor read

• This is a 3 × 2-bed/1-bath units multifamily listed at $1.40M.
• At list price, monthly cash flow is $-6k ($-71k/yr) — negative. Per door: $-2k/mo.
• To cash-flow at today's rent, offer at most $360k (74.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $321k (77.1% below list).
• It's been on market 18 days — a 2% lower offer ($1.38M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $321k (77.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $10k of loan paydown is wiped out by about $42k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#21 in ND, #3,953 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Minot 1 (town): math 41% / reading 46% proficiency, ranked #24 of 53 in ND (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: Rents rising fast (+5.0%/yr); 174 active listings in the ZIP; 123 units permitted in Ward County in 2024 (0 in 5+ unit buildings).
• Ward County population projected at +76% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 8y 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.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 1.3% vs local median 2.4% in Minot — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $3,208/mo this rent would consume 53% of the median local household income ($73k/yr) (locally 1146% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.