1272 Kansas Ave SE

Huron, SD 57350

$161,000D

3 bd · 1.0 ba · 1,896 sqft · Built 1921 · SingleFamily · Pending · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,396/mo
• Mortgage (P&I): −$844
• Tax + insurance: −$182
• HOA: −$0
• Vac / Maint / Mgmt: −$293
• Net cashflow: $77/mo
• Annual: $921/yr
• Cap rate: 6.86%
• Cash-on-cash: 2.04%
• DSCR: 1.09
• 1% rule: 0.87%
• Cash to close: $45,080

Investor read

• This is a 3-bed/1.0-bath single-family listed at $161k.
• At list price, monthly cash flow is $77 ($921/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 $140k (13.3% below list).
• It's been on market 40 days — a 3% lower offer ($156k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $140k (13.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#48 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety C-, amenities F.
• Huron School District 02-2 (town): math 30% / reading 44% proficiency, ranked #55 of 59 in SD (top 93%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Huron Colony Elementary - 13 (math 24% / reading 24%, 17 students, 0% FRL); Huron Middle School - 02 (math 33% / reading 51%, grade D-, #93 of 143 statewide, top 67%, 695 students, 59% FRL); Huron High School - 01 (math 32% / reading 62%, grade D-, #108 of 151 statewide, top 71%, 836 students, 46% FRL).
• Watch-outs: built in 1921 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 149 active listings in the ZIP; 30 units permitted in Beadle County in 2024 (6 in 5+ unit buildings).
• Beadle County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y 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.
• Current owner paid $139k; 16% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 6.9% vs local median 4.0% in Huron — 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

• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
• Built in 1921 — 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.
• 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.