220 Church St

Flasher, ND 58535

$120,000B

6 bd · 7.0 ba · 4,719 sqft · Built 1981 · MultiFamily · Pending · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,990/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$200
• HOA: −$0
• Vac / Maint / Mgmt: −$418
• Net cashflow: $743/mo
• Annual: $8,914/yr
• Cap rate: 13.72%
• Cash-on-cash: 26.53%
• DSCR: 2.18
• 1% rule: 1.66%
• Cash to close: $33,600

Investor read

• This is a 2 × 1-bed/1-bath units multifamily listed at $120k. Condition is rated poor.
• At list price, monthly cash flow is $743 ($9k/yr) — positive. Per door: $371/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• It's been on market 21 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($830 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 58/100 on livability (#297 in ND) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B+; Watch: crime D+, employment D+, amenities F.
• Flasher 39 (rural): math 55% / reading 55% proficiency, ranked #18 of 169 in ND (top 11%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Flasher Elementary School (math 47% / reading 32%, grade F, #137 of 236 statewide, top 63%, 151 students, 24% FRL); Flasher High School (math 24% / reading 34%, grade F, #99 of 144 statewide, top 71%, 120 students, 24% FRL) — zoned schools at 24% FRL track the district average.
• Zoned-school proficiency averages 34% at this address vs 55% district-wide (-20 pts) — the specific schools serving this property underperform the Flasher 39 average; the district grade overstates school quality for this exact location.
• Market conditions: 2 active listings in the ZIP; 94 units permitted in Morton County in 2024 (5 in 5+ unit buildings).
• Morton County population projected at +48% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 3y ago 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.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Major: roof — visible snow and potential ice dam
• Major: exterior siding — exposed siding, potential water damage
• Major: HVAC units — old, possibly inefficient units
• Major: kitchen appliances — dated and worn
• Major: bathroom fixtures — dated and worn
• Major: flooring — worn carpet, exposed subfloor