602 & 604 1st St SE

Stanley, ND 58784

$190,000D

4 bd · 2.0 ba · 1,728 sqft · Built 1955 · Other · Active · 89 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,381/mo
• Mortgage (P&I): −$996
• Tax + insurance: −$198
• HOA: −$0
• Vac / Maint / Mgmt: −$290
• Net cashflow: $-103/mo
• Annual: $-1,240/yr
• Cap rate: 5.64%
• Cash-on-cash: -2.33%
• DSCR: 0.90
• 1% rule: 0.73%
• Cash to close: $53,200

Investor read

• This is a 4-bed/2.0-bath other listed at $190k.
• At list price, monthly cash flow is $-103 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (9.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $138k (27.3% below list).
• It's been on market 89 days — a 6% lower offer ($179k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $138k (27.3% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($1k loan paydown + $8k appreciation (4.0% local appreciation)).
• Location reads 76/100 on livability (#17 in ND, #3,477 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: commute C-, health & safety D, amenities F.
• Stanley 2 (rural): math 21% / reading 37% proficiency, ranked #41 of 53 in ND (top 77%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Stanley Elementary School (math 23% / reading 40%, grade F, #181 of 236 statewide, top 77%, 428 students, 26% FRL); Stanley High School (math 17% / reading 32%, grade F, #108 of 144 statewide, top 88%, 327 students, 22% FRL).
• Watch-outs: built in 1955 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 25 active listings in the ZIP; 29 units permitted in Mountrail County in 2024 (0 in 5+ unit buildings).
• Mountrail County population projected at +118% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 5, paydown + projected appreciation supports a ~$38k 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 89 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1955 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.