306 Cedar St

Drake, ND 58736

$84,000B

3 bd · 1.5 ba · 1,864 sqft · Built 1930 · Other · Active · 231 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,217/mo
• Mortgage (P&I): −$441
• Tax + insurance: −$74
• HOA: −$0
• Vac / Maint / Mgmt: −$256
• Net cashflow: $447/mo
• Annual: $5,359/yr
• Cap rate: 12.67%
• Cash-on-cash: 22.78%
• DSCR: 2.01
• 1% rule: 1.45%
• Cash to close: $23,520

Investor read

• This is a 3-bed/1.5-bath other listed at $84k.
• At list price, monthly cash flow is $447 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $84k).
• It's been on market 231 days — a 12% lower offer ($74k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $74k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($581 loan paydown + $1k appreciation (1.3% local appreciation)).
• Location reads 62/100 on livability (#244 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, schools F, amenities F.
• Drake 57 (rural): math 11% / reading 30% proficiency, ranked #152 of 169 in ND (top 90%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 8 units permitted in McHenry County in 2024 (0 in 5+ unit buildings).
• McHenry County population projected at +57% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $23k; list at $84k implies a 265% gain — meaningful room to come down on a strong offer.
• At projected returns (1.3% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 231 days. Have you received any prior offers? Is the seller open to a 12% 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.
• 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 D 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.