403 3rd St NW

Hazen, ND 58545

$211,999D

4 bd · 2.0 ba · 1,720 sqft · Built 1960 · Other · Active · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,410/mo
• Mortgage (P&I): −$1,112
• Tax + insurance: −$187
• HOA: −$0
• Vac / Maint / Mgmt: −$296
• Net cashflow: $-185/mo
• Annual: $-2,218/yr
• Cap rate: 5.25%
• Cash-on-cash: -3.74%
• DSCR: 0.83
• 1% rule: 0.67%
• Cash to close: $59,360

Investor read

• This is a 4-bed/2.0-bath other listed at $212k.
• At list price, monthly cash flow is $-185 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $179k (15.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $141k (33.5% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $141k (33.5% below list) — sets the bar for 1% rule.
• In year one you build about $23k of equity ($1k loan paydown + $21k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#25 in ND, #4,265 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, cost of living A+; Watch: amenities F, commute F, health & safety D-.
• Hazen 3 (rural): math 41% / reading 45% proficiency, ranked #22 of 53 in ND (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Hazen Elementary School (math 52% / reading 47%, grade D, #65 of 236 statewide, top 37%, 274 students, 19% FRL); Hazen Middle School (math 27% / reading 37%, grade F, #30 of 35 statewide, top 85%, 131 students, 17% FRL); Hazen High School (math 44% / reading 54%, grade D, #19 of 144 statewide, top 19%, 163 students, 12% FRL) — zoned schools at 16% FRL track the district average.
• Market conditions: 38 active listings in the ZIP; 15 units permitted in Mercer County in 2024 (0 in 5+ unit buildings).
• Mercer County population projected at +38% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$36k 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?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.
• 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.