216 2nd St SW

Stanley, ND 58784

$35,000B+

2 bd · 2.0 ba · 2,100 sqft · Built 1950 · Other · Pending · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,132/mo
• Mortgage (P&I): −$184
• Tax + insurance: −$100
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $610/mo
• Annual: $7,322/yr
• Cap rate: 27.21%
• Cash-on-cash: 74.71%
• DSCR: 4.32
• 1% rule: 3.23%
• Cash to close: $9,800

Investor read

• This is a 2-bed/2.0-bath other listed at $35k.
• At list price, monthly cash flow is $610 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $35k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $2k of equity ($242 loan paydown + $1k 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: schools C-, commute C-, health & safety D.
• 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.
• Watch-outs: property tax is 2.9% of price; built in 1950 — 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.
• At projected returns (4.0% appreciation + 3.0% rent growth), your $10k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1950 — 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.