400 Sunrise Cir Cir

Garretson, SD 57030

$305,000D

4 bd · 3.0 ba · 2,074 sqft · Built 2005 · SingleFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,275/mo
• Mortgage (P&I): −$1,599
• Tax + insurance: −$466
• HOA: −$0
• Vac / Maint / Mgmt: −$268
• Net cashflow: $-1,058/mo
• Annual: $-12,698/yr
• Cap rate: 2.13%
• Cash-on-cash: -14.87%
• DSCR: 0.34
• 1% rule: 0.42%
• Cash to close: $85,400

Investor read

• This is a 4-bed/3.0-bath single-family listed at $305k.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative.
• To cash-flow at today's rent, offer at most $118k (61.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $128k (58.2% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $118k (61.3% below list) — sets the bar for cash-flow.
• In year one you build about $33k of equity ($2k loan paydown + $30k appreciation (10.0% local appreciation)).
• Location reads 76/100 on livability (#21 in SD, #3,335 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities F, commute F.
• Garretson School District 49-4 (rural): math 34% / reading 50% proficiency, ranked #43 of 59 in SD (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Garretson Elementary - 02 (math 32% / reading 42%, grade F, #183 of 253 statewide, top 73%, 243 students, 22% FRL); Garretson Middle School - 03 (math 37% / reading 57%, grade D+, #70 of 143 statewide, top 50%, 89 students, 20% FRL); Garretson High School - 01 (math 24% / reading 54%, grade F, #123 of 151 statewide, top 83%, 128 students, 7% FRL) — zoned schools at 16% FRL track the district average.
• Market conditions: 28 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,425 units permitted in Minnehaha County in 2024 (1,367 in 5+ unit buildings).
• Minnehaha County population projected at +46% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 26y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $141k; list at $305k implies a 116% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$52k 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?
• 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.
• 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.