209 Roosevelt Ave

Underwood, ND 58576

$149,900C-

3 bd · 2.0 ba · 1,848 sqft · Built 1975 · SingleFamily · Pending · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,208/mo
• Mortgage (P&I): −$786
• Tax + insurance: −$250
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $-81/mo
• Annual: $-978/yr
• Cap rate: 5.64%
• Cash-on-cash: -2.33%
• DSCR: 0.90
• 1% rule: 0.81%
• Cash to close: $41,972

Investor read

• This is a 3-bed/2.0-bath single-family listed at $150k. Condition is rated good.
• At list price, monthly cash flow is $-81 ($-978/yr) — negative.
• To cash-flow at today's rent, offer at most $138k (7.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (19.4% below list).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $121k (19.4% below list) — sets the bar for 1% rule.
• In year one you build about $2k of equity ($1k loan paydown + $1k appreciation (0.9% local appreciation)).
• Location reads 70/100 on livability (#78 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: amenities F, commute F, health & safety D-.
• Underwood 8 (rural): math 40% / reading 55% proficiency, ranked #63 of 169 in ND (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Underwood Elementary School (math 47% / reading 47%, grade D-, #91 of 236 statewide, top 42%, 121 students, 22% FRL); Underwood High School (math 24% / reading 34%, grade F, #99 of 144 statewide, top 71%, 98 students, 22% FRL).
• Market conditions: 12 active listings in the ZIP; 43 units permitted in McLean County in 2024 (0 in 5+ unit buildings).
• McLean County population projected at +48% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

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?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.