Innsbruck Plan

Bismarck, ND 58503

$223,000F

2 bd · 2.0 ba · 1,384 sqft · Built — · Townhouse · Active · 144 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,894/mo
• Mortgage (P&I): −$1,459
• Tax + insurance: −$464
• HOA: −$0
• Vac / Maint / Mgmt: −$398
• Net cashflow: $-426/mo
• Annual: $-5,111/yr
• Cap rate: 4.46%
• Cash-on-cash: -6.56%
• DSCR: 0.71
• 1% rule: 0.68%
• Cash to close: $77,892

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $223k. Condition is rated poor.
• At list price, monthly cash flow is $-426 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $217k (2.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (15.0% below list).
• It's been on market 144 days — a 12% lower offer ($196k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (15.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#5 in ND, #2,213 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living A; Watch: crime C-, amenities D+, commute F.
• Bismarck 1 (urban): math 41% / reading 42% proficiency, ranked #25 of 53 in ND (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 19% free/reduced lunch — higher-income household profile.
• Zoned schools: Liberty Elementary School (math 57% / reading 49%, grade C, #52 of 236 statewide, top 22%, 496 students, 5% FRL); Horizon Middle School (math 42% / reading 50%, grade D+, #13 of 35 statewide, top 35%, 1,044 students, 14% FRL); Century High School (math 43% / reading 63%, grade C-, #14 of 144 statewide, top 9%, 1,427 students, 12% FRL).
• Market conditions: Rents rising fast (+11.8%/yr); 486 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 259 units permitted in Burleigh County in 2024 (0 in 5+ unit buildings).
• Burleigh County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 4.5% vs local median 3.1% in Bismarck — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• It's been on market 144 days. Have you received any prior offers? Is the seller open to a 15% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: roof — No visible roof structure or condition.
• Major: exterior — No visible siding or paint condition.
• Major: flooring — No visible flooring condition.
• Major: interior walls/paint — No visible interior walls or paint condition.
• Major: bathrooms — No visible bathrooms.
• Major: kitchen — No visible kitchen.