101 3rd St NE

Kulm, ND 58456

$135,000D+

3 bd · 1.5 ba · 1,349 sqft · Built 1981 · Other · Active · 70 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,253/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$263
• Net cashflow: $57/mo
• Annual: $683/yr
• Cap rate: 6.80%
• Cash-on-cash: 1.81%
• DSCR: 1.08
• 1% rule: 0.93%
• Cash to close: $37,800

Investor read

• This is a 3-bed/1.5-bath other listed at $135k.
• At list price, monthly cash flow is $57 ($683/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 $125k (7.2% below list).
• It's been on market 70 days — a 6% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (7.2% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($933 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 71/100 on livability (#57 in ND) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: health & safety C-, crime D+, amenities F.
• Kulm 7 (rural): math 35% / reading 30% proficiency, ranked #138 of 169 in ND (top 82%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Kulm Elementary School (math 64% / reading 44%, grade C, #39 of 236 statewide, top 21%, 81 students, 22% FRL); Kulm High School (math 24% / reading 24%, grade F, #108 of 144 statewide, top 88%, 40 students, 22% FRL).
• Market conditions: 3 active listings in the ZIP; 1 units permitted in LaMoure County in 2024 (0 in 5+ unit buildings).
• LaMoure County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $50k; list at $135k implies a 170% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 70 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.