809 Hwy 281

Red Cloud, NE 68970

$50,000B+

4 bd · 2.0 ba · 2,828 sqft · Built 1961 · SingleFamily · Active · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,264/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$142
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $595/mo
• Annual: $7,134/yr
• Cap rate: 20.56%
• Cash-on-cash: 50.96%
• DSCR: 3.27
• 1% rule: 2.53%
• Cash to close: $14,000

Investor read

• This is a 4-bed/2.0-bath single-family listed at $50k.
• At list price, monthly cash flow is $595 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($346 loan paydown + $2k appreciation (3.5% local appreciation)).
• Location reads 74/100 on livability (#121 in NE, #4,675 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, employment D+, amenities F.
• Red Cloud Community Schools (rural): math 40% / reading 40% proficiency, ranked #219 of 245 in NE (top 89%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 2.9% of price.
• Market conditions: 7 active listings in the ZIP; 2 units permitted in Webster County in 2024 (0 in 5+ unit buildings).
• Webster County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.5% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1961 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• 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.