118 N Lamro St

Winner, SD 57580

$25,000B-

2 bd · 1.0 ba · 1,344 sqft · Built 1990 · Other · Pending · 147 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $745/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$69
• HOA: −$0
• Vac / Maint / Mgmt: −$157
• Net cashflow: $388/mo
• Annual: $4,660/yr
• Cap rate: 24.93%
• Cash-on-cash: 66.57%
• DSCR: 3.96
• 1% rule: 2.98%
• Cash to close: $7,000

Investor read

• This is a 2-bed/1.0-bath other listed at $25k.
• At list price, monthly cash flow is $388 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($745 rent vs $25k).
• It's been on market 147 days — a 12% lower offer ($22k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $22k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $173 of loan paydown is wiped out by about $750 of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#49 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Winner School District 59-2 (town): math 35% / reading 50% proficiency, ranked #48 of 59 in SD (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Winner Elementary - 04 (math 42% / reading 52%, grade D-, #134 of 253 statewide, top 55%, 444 students, 42% FRL); Winner Middle School - 02 (math 32% / reading 47%, grade F, #102 of 143 statewide, top 76%, 160 students, 41% FRL); Winner High School - 01 (math 34% / reading 64%, grade D, #100 of 151 statewide, top 69%, 210 students, 34% FRL) — zoned schools at 39% FRL track the district average.
• Watch-outs: property tax is 2.8% of price.
• Market conditions: 17 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 2 units permitted in Tripp County in 2024 (0 in 5+ unit buildings).
• Tripp County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $18k (43%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $20k; 25% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 147 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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 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?
• 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.