202 Montana St S

Elgin, ND 58533

$162,500D

3 bd · 1.0 ba · 1,560 sqft · Built 1960 · Other · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,180/mo
• Mortgage (P&I): −$852
• Tax + insurance: −$121
• HOA: −$0
• Vac / Maint / Mgmt: −$248
• Net cashflow: $-40/mo
• Annual: $-484/yr
• Cap rate: 5.99%
• Cash-on-cash: -1.06%
• DSCR: 0.95
• 1% rule: 0.73%
• Cash to close: $45,500

Investor read

• This is a 3-bed/1.0-bath other listed at $162k.
• At list price, monthly cash flow is $-40 ($-484/yr) — negative.
• To cash-flow at today's rent, offer at most $155k (4.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $118k (27.4% below list).
• It's been on market 89 days — a 6% lower offer ($153k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (27.4% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($1k loan paydown + $5k appreciation (3.0% local appreciation)).
• Location reads 67/100 on livability (#136 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, health & safety D+, amenities F.
• Elgin-New Leipzig 49 (rural): math 45% / reading 60% proficiency, ranked #43 of 169 in ND (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Elgin-New Leipzig Elementary School (math 24% / reading 24%, grade F, #204 of 236 statewide, top 91%, 105 students, 59% FRL); Elgin-New Leipzig High School (math 30% / reading 70%, grade D+, #16 of 144 statewide, top 12%, 66 students, 58% FRL) — zoned schools average 58% FRL vs 31% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 37% at this address vs 52% district-wide (-15 pts) — the specific schools serving this property underperform the Elgin-New Leipzig 49 average; the district grade overstates school quality for this exact location.
• Market conditions: 8 active listings in the ZIP; 2 units permitted in Grant County in 2024 (0 in 5+ unit buildings).
• Grant County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $40k; list at $162k implies a 306% gain — meaningful room to come down on a strong offer.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $46k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$32k 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 89 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.