302 10th Ave E

West Fargo, ND 58078

$232,000F

3 bd · 1.0 ba · 912 sqft · Built 1970 · SingleFamily · Active · 33 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,209/mo
• Mortgage (P&I): −$1,217
• Tax + insurance: −$387
• HOA: −$0
• Vac / Maint / Mgmt: −$254
• Net cashflow: $-648/mo
• Annual: $-7,782/yr
• Cap rate: 2.94%
• Cash-on-cash: -11.98%
• DSCR: 0.47
• 1% rule: 0.52%
• Cash to close: $64,960

Investor read

• This is a 3-bed/1.0-bath single-family listed at $232k.
• At list price, monthly cash flow is $-648 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $138k (40.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $121k (47.9% below list).
• It's been on market 33 days — a 3% lower offer ($225k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $121k (47.9% 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 $7k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#10 in ND, #2,868 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: health & safety D+, amenities F, commute F.
• West Fargo 6 (suburban): math 41% / reading 42% proficiency, ranked #26 of 53 in ND (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Eastwood Elementary School (math 32% / reading 27%, grade F, #185 of 236 statewide, top 84%, 398 students, 49% FRL); Cheney Middle School (math 40% / reading 45%, grade D-, #18 of 35 statewide, top 50%, 1,012 students, 43% FRL); West Fargo High School (math 32% / reading 42%, grade F, #71 of 144 statewide, top 52%, 1,423 students, 32% FRL) — zoned schools average 41% FRL vs 24% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+5.1%/yr); 262 active listings in the ZIP; 16 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; 1,218 units permitted in Cass County in 2024 (410 in 5+ unit buildings).
• Cass County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent is only 16% of the median local income ($91k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 33 days. Have you received any prior offers? Is the seller open to a 48% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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 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.
• 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.