1220 South St

Sutherland, NE 69165

$65,000B-

1 bd · 1.0 ba · 672 sqft · Built 1968 · Manufactured · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $793/mo
• Mortgage (P&I): −$341
• Tax + insurance: −$176
• HOA: −$0
• Vac / Maint / Mgmt: −$167
• Net cashflow: $110/mo
• Annual: $1,320/yr
• Cap rate: 10.64%
• Cash-on-cash: 15.51%
• DSCR: 1.69
• 1% rule: 1.22%
• Cash to close: $18,200

Investor read

• This is a 1-bed/1.0-bath manufactured listed at $65k.
• At list price, monthly cash flow is $110 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($793 rent vs $65k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $449 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#116 in NE, #4,531 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: health & safety C-, amenities F, commute F.
• Sutherland Public Schools (rural): math 50% / reading 55% proficiency, ranked #111 of 245 in NE (top 45%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Sutherland Elementary School (math 57% / reading 57%, grade C+, #136 of 502 statewide, top 31%, 152 students, 33% FRL); Sutherland High School (math 37% / reading 52%, grade F, #146 of 261 statewide, top 67%, 153 students, 29% FRL).
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 9 active listings in the ZIP; 66 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1968 — 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.
• Schools are B-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?
• 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.
• 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.