221 Essex Ave E Ave E

Salem, SD 57058

$100,000B+

3 bd · 2.0 ba · 1,541 sqft · Built 1938 · SingleFamily · Active · 11 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,043/mo
• Mortgage (P&I): −$524
• Tax + insurance: −$377
• HOA: −$0
• Vac / Maint / Mgmt: −$219
• Net cashflow: $-77/mo
• Annual: $-923/yr
• Cap rate: 9.13%
• Cash-on-cash: 10.15%
• DSCR: 1.45
• 1% rule: 1.04%
• Cash to close: $28,000

Investor read

• This is a 3-bed/2.0-bath single-family listed at $100k.
• At list price, monthly cash flow is $-77 ($-923/yr) — negative.
• To cash-flow at today's rent, offer at most $86k (13.6% below list).
• Meets the 1% rule at list price ($1k rent vs $100k).
• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $86k (13.6% below list) — sets the bar for cash-flow.
• In year one you build about $11k of equity ($691 loan paydown + $10k appreciation (10.0% local appreciation)).
• Location reads 72/100 on livability (#45 in SD) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Mccook Central School District 43-7 (rural): math 44% / reading 50% proficiency, ranked #87 of 148 in SD (top 59%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mccook Central Elementary - 02 (math 24% / reading 24%, grade F, #219 of 253 statewide, top 89%, 184 students, 21% FRL); Mccook Central Middle School - 03 (math 47% / reading 57%, grade C+, #46 of 143 statewide, top 37%, 96 students, 18% FRL); Mccook Central High School - 01 (math 30% / reading 50%, grade F, #114 of 151 statewide, top 81%, 128 students, 16% FRL).
• Watch-outs: flood insurance adds $314/mo; built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 33 active listings in the ZIP; 22 units permitted in McCook County in 2024 (0 in 5+ unit buildings).
• McCook County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1938 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.