26164 Reed Ct Ct

Canistota, SD 57012

$554,900D-

4 bd · 3.0 ba · 3,755 sqft · Built 2022 · SingleFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,488/mo
• Mortgage (P&I): −$2,910
• Tax + insurance: −$553
• HOA: −$25
• Vac / Maint / Mgmt: −$313
• Net cashflow: $-2,312/mo
• Annual: $-27,745/yr
• Cap rate: 1.29%
• Cash-on-cash: -17.86%
• DSCR: 0.21
• 1% rule: 0.27%
• Cash to close: $155,372

Investor read

• This is a 4-bed/3.0-bath single-family listed at $555k.
• At list price, monthly cash flow is $-2k ($-28k/yr) — negative.
• To cash-flow at today's rent, offer at most $146k (73.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $149k (73.2% below list).
• It's been on market 51 days — a 3% lower offer ($538k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $146k (73.6% below list) — sets the bar for cash-flow.
• In year one you build about $57k of equity ($4k loan paydown + $53k appreciation (9.5% local appreciation)).
• Location reads 66/100 on livability (#126 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D-, amenities F, commute F.
• Canistota School District 43-1 (rural): math 65% / reading 70% proficiency, ranked #7 of 148 in SD (top 5%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Canistota Elementary - 02 (math 74% / reading 64%, grade A-, #19 of 253 statewide, top 12%, 157 students, 24% FRL); Canistota Middle School - 03 (math 54% / reading 64%, grade B, #19 of 143 statewide, top 18%, 60 students, 27% FRL); Canistota High School - 01 (math 24% / reading 75%, grade D+, #69 of 151 statewide, top 65%, 76 students, 16% FRL) — zoned schools at 22% FRL track the district average.
• Market conditions: 18 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.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$91k 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 51 days. Have you received any prior offers? Is the seller open to a 74% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.