308 E Kimball St

Callaway, NE 68825

$129,000D

2 bd · 2.0 ba · 1,080 sqft · Built 1920 · SingleFamily · Pending · 245 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $972/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$127
• HOA: −$0
• Vac / Maint / Mgmt: −$204
• Net cashflow: $-36/mo
• Annual: $-435/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.20%
• DSCR: 0.95
• 1% rule: 0.75%
• Cash to close: $36,120

Investor read

• This is a 2-bed/2.0-bath single-family listed at $129k.
• At list price, monthly cash flow is $-36 ($-435/yr) — negative.
• To cash-flow at today's rent, offer at most $123k (5.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $97k (24.7% below list).
• It's been on market 245 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $97k (24.7% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($892 loan paydown + $3k appreciation (2.6% local appreciation)).
• Location reads 73/100 on livability (#154 in NE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment D, amenities F, commute F.
• Callaway Public Schools (rural): math 50% / reading 50% proficiency, ranked #148 of 245 in NE (top 60%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Callaway Elementary School (math 44% / reading 54%, grade D, #233 of 502 statewide, top 52%, 101 students, 28% FRL); Callaway High School (math 44% / reading 44%, grade F, #146 of 261 statewide, top 67%, 79 students, 37% FRL).
• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 22 units permitted in Custer County in 2024 (0 in 5+ unit buildings).
• Custer County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (2.6% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 8, 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 245 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1920 — 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 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.