412 1st Ave N

Lake Norden, SD 57248

$269,500D

4 bd · 3.0 ba · 4,446 sqft · Built 1882 · SingleFamily · Active · 74 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,646/mo
• Mortgage (P&I): −$1,413
• Tax + insurance: −$449
• HOA: −$0
• Vac / Maint / Mgmt: −$346
• Net cashflow: $-562/mo
• Annual: $-6,745/yr
• Cap rate: 3.79%
• Cash-on-cash: -8.94%
• DSCR: 0.60
• 1% rule: 0.61%
• Cash to close: $75,460

Investor read

• This is a 4-bed/3.0-bath single-family listed at $270k.
• At list price, monthly cash flow is $-562 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $188k (30.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (38.9% below list).
• It's been on market 74 days — a 6% lower offer ($253k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $165k (38.9% below list) — sets the bar for 1% rule.
• In year one you build about $29k of equity ($2k loan paydown + $27k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#142 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D+, amenities F.
• Hamlin School District 28-3 (rural): math 55% / reading 51% proficiency, ranked #18 of 59 in SD (top 30%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hamlin Elementary - 09 (math 62% / reading 57%, grade B-, #56 of 253 statewide, top 29%, 451 students, 35% FRL); Hamlin Middle School - 02 (math 47% / reading 42%, grade D, #75 of 143 statewide, top 61%, 186 students, 30% FRL); Hamlin High School - 01 (math 54% / reading 64%, grade C+, #31 of 151 statewide, top 32%, 233 students, 23% FRL) — zoned schools at 29% FRL track the district average.
• Watch-outs: built in 1882 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 11 active listings in the ZIP; 56 units permitted in Hamlin County in 2024 (5 in 5+ unit buildings).
• Hamlin County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 12y ago; this cycle's ask has dropped $20k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $109k; list at $270k implies a 147% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$46k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 74 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Built in 1882 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F-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?