1122 S Washington St

Aberdeen, SD 57401

$50,000B

3 bd · 1.0 ba · 842 sqft · Built 1905 · SingleFamily · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,183/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$140
• HOA: −$0
• Vac / Maint / Mgmt: −$248
• Net cashflow: $533/mo
• Annual: $6,391/yr
• Cap rate: 19.08%
• Cash-on-cash: 45.65%
• DSCR: 3.03
• 1% rule: 2.37%
• Cash to close: $14,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $50k.
• At list price, monthly cash flow is $533 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $346 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#7 in SD, #1,411 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute F.
• Aberdeen School District 06-1 (town): math 45% / reading 54% proficiency, ranked #33 of 59 in SD (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Simmons Elementary - 10 (math 32% / reading 47%, grade F, #169 of 253 statewide, top 71%, 395 students, 39% FRL); Simmons Middle School - 03 (math 40% / reading 45%, grade D-, #92 of 143 statewide, top 64%, 483 students, 40% FRL); Central High School - 01 (math 33% / reading 63%, grade D, #106 of 151 statewide, top 71%, 1,388 students, 28% FRL).
• Watch-outs: property tax is 2.9% of price; built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 174 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 86 units permitted in Brown County in 2024 (0 in 5+ unit buildings).
• Brown County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.
• Cap rate 19.1% vs local median 2.8% in Aberdeen — 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

• Built in 1905 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.