12529 Bighorn Rd

Sturgis, SD 57785

$24,900D+

2 bd · 2.0 ba · 1,664 sqft · Built 1997 · SingleFamily · Active · 114 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,126/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$42
• HOA: −$0
• Vac / Maint / Mgmt: −$236
• Net cashflow: $718/mo
• Annual: $8,611/yr
• Cap rate: 40.88%
• Cash-on-cash: 123.51%
• DSCR: 6.50
• 1% rule: 4.52%
• Cash to close: $6,972

Investor read

• This is a 2-bed/2.0-bath single-family listed at $25k.
• At list price, monthly cash flow is $718 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $25k).
• It's been on market 114 days — a 9% lower offer ($23k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $23k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $172 of loan paydown is wiped out by about $747 of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#25 in SD, #3,821 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: employment D+, amenities F, commute F.
• Meade School District 46-1 (rural): math 45% / reading 55% proficiency, ranked #30 of 59 in SD (top 51%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sturgis Elementary - 03 (math 67% / reading 65%, grade B+, #37 of 253 statewide, top 15%, 552 students, 35% FRL); Sturgis Williams Middle School - 02 (math 40% / reading 54%, grade D+, #70 of 143 statewide, top 50%, 489 students, 30% FRL); Sturgis Brown High School - 01 (math 42% / reading 62%, grade D+, #65 of 151 statewide, top 43%, 842 students, 23% FRL) — zoned schools at 29% FRL track the district average.
• Market conditions: 167 active listings in the ZIP; 141 units permitted in Meade County in 2024 (25 in 5+ unit buildings).
• Meade County population projected at +35% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 4y ago; this cycle's ask has dropped $10k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 40.9% vs local median 1.5% in Sturgis — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 114 days. Have you received any prior offers? Is the seller open to a 9% 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.
• 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.
• 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.