43330 Us-12 Hwy #5

Webster, SD 57274

$129,000D-

3 bd · 2.0 ba · 1,845 sqft · Built 2026 · SingleFamily · Active · 321 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,079/mo
• Mortgage (P&I): −$676
• Tax + insurance: −$215
• HOA: −$0
• Vac / Maint / Mgmt: −$227
• Net cashflow: $-39/mo
• Annual: $-472/yr
• Cap rate: 5.93%
• Cash-on-cash: -1.31%
• DSCR: 0.94
• 1% rule: 0.84%
• Cash to close: $36,120

Investor read

• This is a 3-bed/2.0-bath single-family listed at $129k.
• At list price, monthly cash flow is $-39 ($-472/yr) — negative.
• To cash-flow at today's rent, offer at most $123k (4.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (16.4% below list).
• It's been on market 321 days — a 12% lower offer ($114k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (16.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $892 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#22 in SD, #3,452 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, employment D, amenities F.
• Webster Area 18-5 (rural): math 54% / reading 66% proficiency, ranked #10 of 59 in SD (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Webster Area Elementary - 03 (math 62% / reading 67%, grade B, #39 of 253 statewide, top 19%, 265 students, 22% FRL); Webster Area Middle School - 02 (math 57% / reading 77%, grade A-, #5 of 143 statewide, top 3%, 125 students, 18% FRL); Webster Area High School - 01 (math 24% / reading 44%, grade F, #126 of 151 statewide, top 85%, 161 students, 17% FRL) — zoned schools at 19% FRL track the district average.
• Market conditions: 11 active listings in the ZIP; 34 units permitted in Day County in 2024 (0 in 5+ unit buildings).
• Day County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

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 321 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• 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.
• 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.