314 9th St

Springfield, SD 57062

$150,000D+

4 bd · 2.0 ba · 1,275 sqft · Built 1930 · Other · Pending · 138 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,238/mo
• Mortgage (P&I): −$787
• Tax + insurance: −$250
• HOA: −$0
• Vac / Maint / Mgmt: −$260
• Net cashflow: $-59/mo
• Annual: $-703/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.67%
• DSCR: 0.93
• 1% rule: 0.83%
• Cash to close: $42,000

Investor read

• This is a 4-bed/2.0-bath other listed at $150k.
• At list price, monthly cash flow is $-59 ($-703/yr) — negative.
• To cash-flow at today's rent, offer at most $142k (5.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $124k (17.5% below list).
• It's been on market 138 days — a 12% lower offer ($132k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $124k (17.5% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($1k loan paydown + $11k appreciation (7.6% local appreciation)).
• Location reads 66/100 on livability (#119 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A-; Watch: employment C-, amenities F, commute F.
• Bon Homme School District 04-2 (rural): math 55% / reading 56% proficiency, ranked #15 of 59 in SD (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bon Homme Middle School - 02 (math 52% / reading 57%, grade B-, #36 of 143 statewide, top 29%, 110 students, 24% FRL); Bon Homme High School - 01 (math 10% / reading 50%, grade F, #129 of 151 statewide, top 89%, 136 students, 24% FRL).
• Zoned-school proficiency averages 42% at this address vs 56% district-wide (-13 pts) — the specific schools serving this property underperform the Bon Homme School District 04-2 average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 18 units permitted in Bon Homme County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 4y ago; this cycle's ask has dropped $30k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (7.6% appreciation + 3.0% rent growth), your $42k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$31k 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 138 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1930 — 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.
• 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.