119 N 10th St

Custer, SD 57730

$159,900D

1 bd · 2.0 ba · 771 sqft · Built 1947 · SingleFamily · Active · 73 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,192/mo
• Mortgage (P&I): −$839
• Tax + insurance: −$222
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $-118/mo
• Annual: $-1,418/yr
• Cap rate: 5.82%
• Cash-on-cash: -1.68%
• DSCR: 0.93
• 1% rule: 0.75%
• Cash to close: $44,772

Investor read

• This is a 1-bed/2.0-bath single-family listed at $160k.
• At list price, monthly cash flow is $-118 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $139k (13.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $119k (25.4% below list).
• It's been on market 73 days — a 6% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (25.4% 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 75/100 on livability (#27 in SD, #3,937 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, commute F.
• Custer School District 16-1 (rural): math 40% / reading 54% proficiency, ranked #37 of 59 in SD (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Custer Elementary - 02 (math 42% / reading 52%, grade D-, #134 of 253 statewide, top 55%, 304 students, 19% FRL); Custer Jr. High - 05 (math 47% / reading 62%, grade B-, #36 of 143 statewide, top 29%, 101 students, 22% FRL); Custer High School - 01 (math 37% / reading 72%, grade C-, #53 of 151 statewide, top 41%, 284 students, 16% FRL).
• Watch-outs: flood insurance adds $56/mo; built in 1947 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 118 active listings in the ZIP; 229 units permitted in Custer County in 2024 (0 in 5+ unit buildings).
• Custer County population projected at +6% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts 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.
• Climate carrying-cost: severe flood risk; major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.8% vs local median 1.2% in Custer — 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?
• It's been on market 73 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Built in 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.