1901 24th Ave S #27

Grand Forks, ND 58201

$169,000F

2 bd · 2.0 ba · 1,120 sqft · Built 1978 · Condo · Pending · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,260/mo
• Mortgage (P&I): −$886
• Tax + insurance: −$248
• HOA: −$188
• Vac / Maint / Mgmt: −$265
• Net cashflow: $-327/mo
• Annual: $-3,924/yr
• Cap rate: 3.97%
• Cash-on-cash: -8.29%
• DSCR: 0.63
• 1% rule: 0.75%
• Cash to close: $47,320

Investor read

• This is a 2-bed/2.0-bath condo listed at $169k.
• At list price, monthly cash flow is $-327 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $144k (14.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $126k (25.5% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $126k (25.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#8 in ND, #2,645 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime D+.
• Grand Forks 1 (urban): math 37% / reading 49% proficiency, ranked #27 of 53 in ND (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Viking Elementary School (math 47% / reading 37%, grade F, #118 of 236 statewide, top 54%, 320 students, 40% FRL); South Middle School (math 37% / reading 54%, grade D+, #14 of 35 statewide, top 38%, 549 students, 31% FRL); Red River High School (math 36% / reading 61%, grade D, #29 of 144 statewide, top 20%, 1,137 students, 20% FRL) — zoned schools at 30% FRL track the district average.
• Market conditions: Rents rising fast (+9.3%/yr); 284 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 133 units permitted in Grand Forks County in 2024 (0 in 5+ unit buildings).
• Grand Forks County population projected at +43% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $86k; list at $169k implies a 98% gain — meaningful room to come down on a strong offer.
• Cap rate 4.0% vs local median 2.2% in Grand Forks — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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?
• Built in 1978 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?