412 SW 2nd St St · Madison, SD 57042

$89,900

4 bd · 1.0 ba · 1,280 sqft · Other public records · 112 Days on market

Built 1894 8,517 sqft lot $70/sqft · 43% below area Est $157k · 43% under

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Schools +4.1/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Investment opportunity in Madison! This four-bedroom, one-bathroom residence offers opportunity for rental income or value-add renovation. The home features convenient main-floor laundry and a functional layout. Located just a short distance from downtown, the property provides easy access to shopping, dining, and local amenities—an appealing option for tenants. Property is being sold AS IS.

Key facts

• Functional layout
• Main-floor laundry
• 8,517 sq ft lot

Tags

• MAIN-FLOOR LAUNDRY
• FUNCTIONAL LAYOUT
• EASY ACCESS TO SHOPPING
• EASY ACCESS TO DINING
• EASY ACCESS TO LOCAL AMENITIES

What this means for you Summary

Snapshot

• This is a 4-bed/1.0-bath other listed at $90k.

Deal economics

• At list price, monthly cash flow is $547 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $90k).
• Recommended offer: $82k (9.0% below list) — sets the bar for market timing.
• Cap rate 13.6% vs local median 2.8% in Madison — 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.

Location & tenants

• Location reads 75/100 on livability (#26 in SD, #3,922 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Madison Central School District 39-2 (town): math 41% / reading 55% proficiency, ranked #36 of 59 in SD (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 130 active listings in the ZIP; 35 units permitted in Lake County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Lake County population projected at +32% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 112 days — a 9% lower offer ($82k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1894 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $81,809 (9.0% below list)

Questions for the listing agent

1. It's been on market 112 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1894 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 1.60% ✓
• Cap rate: 13.59%
• Cash-on-cash: 26.05%
• DSCR: 2.16
• GRM: 5.2

CMA / ARV

• ARV (median comp): $156,788
• List price: $89,900
• Delta: -42.66%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 19.8%
• Equity multiple: 1.80×
• Total profit: $20,244
• Equity at exit: $13,404

10-year hold

• IRR: 28.0%
• Equity multiple: 3.48×
• Total profit: $62,466
• Equity at exit: $7,773

Cash invested: $25,172 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State South Dakota: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

3-day notice; mostly landlord-friendly.

Methodology + full state rankings →

ZIP-level market 57042

• Active inventory: 130
• Price-to-rent: 5.2×

Monthly cashflow live

• Estimated rent: $1,442 medium
• Mortgage (P&I): −$471
• Tax from tax record: −$84 /mo · $1,009/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$303
• Net cashflow: $547

Break-even live

Break-even rent $751

Max offer price $89,900

Occupancy floor 57%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $22,475
• Closing costs: $2,697
• Reserves months: —
• Total cash needed: —

Listing history 15 events

1. 2026-06-18
   days on market $89,900 Active 112 DOM
2. 2026-06-17
   days on market $89,900 Active 111 DOM
3. 2026-06-16
   days on market $89,900 Active 110 DOM
4. 2026-06-15
   days on market $89,900 Active 109 DOM
5. 2026-06-13
   days on market $89,900 Active 107 DOM
6. 2026-06-12
   days on market $89,900 Active 106 DOM
7. 2026-06-09
   days on market $89,900 Active 103 DOM
8. 2026-06-08
   days on market $89,900 Active 102 DOM
9. 2026-06-08
   days on market $89,900 Active 101 DOM
10. 2026-06-05
    pricedays on market $89,900 Active 99 DOM
11. 2026-06-04
    days on market $99,900 Active 97 DOM
12. 2026-06-02
    days on market $99,900 Active 96 DOM
13. 2026-06-01
    days on market $99,900 Active 95 DOM
14. 2026-05-31
    days on market $99,900 Active 94 DOM
15. 2026-02-25
    listed $99,900 Active 400-char remark

    Show marketing remark (400 chars)

    Investment opportunity in Madison! This four-bedroom, one-bathroom residence offers opportunity for rental income or value-add renovation. The home features convenient main-floor laundry and a functional layout. Located just a short distance from downtown, the property provides easy access to shopping, dining, and local amenities—an appealing option for tenants. Property is being sold AS IS.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast SD · Resets to sale price

• Current annual tax: $1,009 · $84/mo
• Projected year-2 tax: $1,178 · $98/mo
• Expected delta: +$169/yr (+$14/mo · 16.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $17,308
• − Mortgage interest: −$5,036
• − Property taxes: −$1,009
• − Insurance: −$450
• − Repairs & maintenance: −$1,385
• − Management: −$1,385
• − Depreciation: −$2,615
• Taxable income: $5,430
• Est. tax owed @ 24.0%: −$1,303
• After-tax cash flow: $5,255/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Madison Central School District 39-2
• NCES district ID: 4639600
• Math proficiency: 41% ▼ -8.00%
• Reading proficiency: 55% ▼ -3.00%
• Median HH income: $47,304
• Composite: 40.82/100
• National rank: #3635
• State rank: #36 of 59 in SD

Livability — Madison

• Score: 75/100
• State rank: #26
• US rank: #3922

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment C Housing A+ Health & safety F User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Madison, SD
• Population (ZIP): 7,900

Population outlook (Lake County) Hauer SSP2

• Today (2025): 15,062 people
• By 2030: 16,261 · +8.0%
• By 2040: 18,290 · +21.4%
• By 2050: 19,881 · +32.0%
• By 2075: 23,907 · +58.7%
• By 2100: 29,664 · +96.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Hispanic / Latino 4% Two or more races 2%
• Common ancestry: Portuguese 20% Iranian 3% Scottish 2%
• Foreign-born: 1% · China
• Languages at home: 98% English-only · German/W. Germanic 1% Spanish 1%

Political lean MEDSL · Lake

• 2024 margin: Solid R (+31.2) · D 33.5% · R 64.7% · Other 1.9%
• 2008→2024 swing: -31.8pp toward R · 2008: 0.7pp · 2024: -31.2pp
• All cycles: 2024: R+31.2 2020: R+27.5 2016: R+25.4 2012: R+11.1 2008: D+0.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -111.13%
• Current HPI: 200.0944
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 0.70%
• F500 in state: 2

Industry mix (Fortune 500 HQ in SD)

Industry	F500 HQs	Revenue
▸Utilities	1	$1B

Price history

1 event — show timeline

• 2026-02-25 Listed $99,900 REALTOR® Association of the Sioux Empire

Property tax history

+5.2%/yr

Latest (2025): $1,009 · +3.1% YoY. Source: county tax records.