203 W 5th St

Hosmer, SD 57448

$97,300B

5 bd · 2.0 ba · 1,432 sqft · Built 1965 · Other · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,266/mo
• Mortgage (P&I): −$510
• Tax + insurance: −$162
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $327/mo
• Annual: $3,929/yr
• Cap rate: 10.33%
• Cash-on-cash: 14.42%
• DSCR: 1.64
• 1% rule: 1.30%
• Cash to close: $27,244

Investor read

• This is a 5-bed/2.0-bath other listed at $97k.
• At list price, monthly cash flow is $327 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $97k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $4k of equity ($673 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 57/100 on livability (#284 in SD) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: health & safety C-, employment D, schools F.
• Edmunds Central School District 22-5 (rural): math 35% / reading 50% proficiency, ranked #105 of 148 in SD (top 71%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 1 active listings in the ZIP; 2 units permitted in Edmunds County in 2024 (0 in 5+ unit buildings).
• Edmunds County population projected to shrink 3% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, 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

• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.