401 2nd Ave NE · Steele, ND 58482

$400,000

9 bd · 3.9 ba · 4,950 sqft · MultiFamily · 6 Days on market

Built 1994 Fair condition

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Why this score? — see what drove the D+ 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 +13.9/30.0
• Appreciation +8.9/10.0
• ARV discount +7.5/15.0
• DSCR +4.2/10.0
• 1% rule +3.9/10.0
• Schools +3.5/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 3 units. confirmed

Key facts

• Individual garages
• Vinyl siding
• Newer metal roof

Tags

• NEWER METAL ROOF
• VINYL SIDING
• 10X10 CONCRETE PATIOS
• MAINTENANCE FREE EXTERIOR
• INDIVIDUAL GARAGES
• PRACTICAL UNIT LAYOUTS

Property features AI

Exterior

• Parking: Attached garage with 4 spaces
• Utilities: Public water; Public sewer; Natural gas available; Electricity connected
• Home design: One-story quadruplex (residential income property)
• Construction: Vinyl siding; Slab foundation; Built as a residential income quadruplex
• Exterior features: Metal roof; Rectangular lot; Paved city street frontage; Publicly maintained road

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: 7 total rooms (includes bedrooms and living areas)
• Flooring: Vinyl; Carpet; Laminate
• Bathrooms: 4 full bathrooms
• Heating & cooling: Forced air heating (natural gas); Wall/window cooling units
• Interior features: Range; Refrigerator; Rain gutters
• Laundry & utility: Natural gas available; Electricity connected; Water connected; Sewer connected

What this means for you Summary

Snapshot

• This is a 3 × 3-bed/1.3-bath units multifamily listed at $400k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $43 ($511/yr) — positive. Per door: $14/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $355k (11.2% below list).
• Recommended offer: $355k (11.2% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 68/100 on livability (#109 in ND) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A-; Watch: schools D+, amenities F, commute F.
• Kidder County 1 (rural): math 35% / reading 40% proficiency, ranked #117 of 169 in ND (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 2 active listings in the ZIP.

Forward outlook

• In year one you build about $34k of equity ($3k loan paydown + $31k appreciation (7.8% local appreciation)).
• Kidder County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (7.8% appreciation + 3.0% rent growth), your $112k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$55k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.

Recommended offer $355,300 (11.2% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.89% ✗
• Cap rate: 6.42%
• Cash-on-cash: 0.46%
• DSCR: 1.02
• GRM: 9.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

7.83% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 20.0%
• Equity multiple: 2.46×
• Total profit: $163,239
• Equity at exit: $299,314

10-year hold

• IRR: 18.6%
• Equity multiple: 5.21×
• Total profit: $471,596
• Equity at exit: $589,822

Cash invested: $112,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 82 Strongly Landlord-Friendly
• State North Dakota: 82 Strongly Landlord-Friendly · R+20
• County: — inherits STATE
• City: — inherits STATE

3-day notice; landlord-friendly.

Methodology + full state rankings →

ZIP-level market 58482

• Home prices YoY: 5.7%
• Active inventory: 2
• Price-to-rent: 28.1×

Monthly cashflow live

• Estimated rent: $3,553 medium
• Mortgage (P&I): −$2,098
• Tax est. 1.5%: −$500 /mo · $6,000/yr
• Insurance: −$167
• HOA: −$0
• Vacancy / Maint / Mgmt: −$746
• Net cashflow: $43

Break-even live

Break-even rent $3,499

Max offer price $400,000

Occupancy floor 94%

3-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 3× units	3	1.3	$3,552
Total (3 units)			$3,553

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: $100,000
• Closing costs: $12,000
• Reserves months: —
• Total cash needed: —

Listing history 5 events

1. 2026-06-18
   days on market $400,000 Active 6 DOM
2. 2026-06-17
   days on market $400,000 Active 5 DOM
3. 2026-06-16
   days on market $400,000 Active 4 DOM
4. 2026-06-15
   days on market $400,000 Active 3 DOM
5. 2026-06-13
   listed $400,000 Active 1 DOM

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

Taxation est. · year 1

• Rental income: $42,636
• − Mortgage interest: −$22,406
• − Property taxes: −$6,000
• − Insurance: −$2,000
• − Repairs & maintenance: −$3,411
• − Management: −$3,411
• − Depreciation: −$11,636
• Taxable loss: −$6,228
• Est. tax savings @ 24.0%: +$1,495
• After-tax cash flow: $2,006/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.

Condition & rehab AI · 12 photos

Fair 45/100 Moderate rehab

This multi-family property requires moderate renovations to update the kitchen and bathrooms, and improve the exterior and landscaping. These updates will significantly increase its resale and rental value.

Repairs flagged

• Moderate kitchen cabinets — dated and in need of replacement
• Moderate kitchen appliances — dated and in need of replacement
• Moderate kitchen flooring — dated and in need of replacement
• Moderate bathroom fixtures — basic and in need of replacement
• Moderate exterior siding — moderate wear

Value-add opportunities

• Both update kitchen with new cabinets and appliances — modern kitchen will attract more buyers and renters
• Both update bathrooms with new fixtures and decor — modern bathrooms will attract more buyers and renters
• Both landscape and improve curb appeal — improved curb appeal will attract more buyers and renters

Renovation cost estimate screening

Repair item	Severity	Est. cost
kitchen cabinets · dated and in need of replacement	Moderate	$3,000–15,000
kitchen appliances · dated and in need of replacement	Moderate	$3,000–15,000
kitchen flooring · dated and in need of replacement	Moderate	$3,000–15,000
bathroom fixtures · basic and in need of replacement	Moderate	$3,000–15,000
exterior siding · moderate wear	Moderate	$3,000–15,000
Total estimated repair cost · 5 items		$15,000–75,000

Value-add ROI direction

• Both update kitchen with new cabinets and appliances — modern kitchen will attract more buyers and renters ↑
• Both update bathrooms with new fixtures and decor — modern bathrooms will attract more buyers and renters ↑
• Both landscape and improve curb appeal — improved curb appeal will attract more buyers and renters ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Kidder County 1
• NCES district ID: 3800389
• Math proficiency: 35% ▼ -5.00%
• Reading proficiency: 40% ▬ 0.00%
• Median HH income: $47,134
• Composite: 34.67/100
• National rank: #10068
• State rank: #117 of 169 in ND

Livability — Steele

• Score: 68/100
• State rank: #109
• US rank: #9477

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Steele, ND
• Population (ZIP): 892

Population outlook (Kidder County) Hauer SSP2

• Today (2025): 2,373 people
• By 2030: 2,333 · -1.7%
• By 2040: 2,232 · -5.9%
• By 2050: 2,181 · -8.1%
• By 2075: 2,206 · -7.0%
• By 2100: 2,357 · -0.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (94%)
• Race & ethnicity: White 94% Hispanic / Latino 4% Two or more races 2%
• Common ancestry: Portuguese 18% Scotch-Irish 6% Romanian 2%
• Foreign-born: 1% · Canada
• Languages at home: 97% English-only · Spanish 2%

Political lean MEDSL · Kidder

• 2024 margin: Solid R (+64.6) · D 17.1% · R 81.7% · Other 1.1%
• 2008→2024 swing: -37.8pp toward R · 2008: -26.9pp · 2024: -64.6pp
• All cycles: 2024: R+64.6 2020: R+68.1 2016: R+68.3 2012: R+36.4 2008: R+26.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 7.83%
• Current HPI: 146.3512
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.09%
• F500 in state: 2

Industry mix (Fortune 500 HQ in ND)

Industry	F500 HQs	Revenue
▸Utilities / Construction	1	$6B

Price history

1 event — show timeline

• 2026-06-12 Listed $400,000 GNMLS