701 E 6th St St

Freeman, SD 57029

$460,000B-

15 bd · 8.0 ba · 7,104 sqft · Built 1973 · MultiFamily · Pending · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,868/mo
• Mortgage (P&I): −$2,412
• Tax + insurance: −$767
• HOA: −$0
• Vac / Maint / Mgmt: −$1,232
• Net cashflow: $1,457/mo
• Annual: $17,481/yr
• Cap rate: 10.09%
• Cash-on-cash: 13.57%
• DSCR: 1.60
• 1% rule: 1.28%
• Cash to close: $128,800

Investor read

• This is a 5 × 3-bed/?-bath units multifamily listed at $460k. Condition is rated average.
• At list price, monthly cash flow is $1k ($17k/yr) — positive. Per door: $291/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $460k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#12 in SD, #2,764 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Freeman School District 33-1 (rural): math 45% / reading 65% proficiency, ranked #46 of 148 in SD (top 31%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Freeman Jr High - 05 (math 47% / reading 57%, grade C+, #46 of 143 statewide, top 37%, 60 students, 23% FRL) — zoned schools at 23% FRL track the district average.
• Market conditions: 15 active listings in the ZIP; 21 units permitted in Hutchinson County in 2024 (0 in 5+ unit buildings).
• Hutchinson County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $129k cash investment doubles in ~9 years — after that, you're playing with house money.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1973 — 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Repairs flagged (vision-AI assessment)

• Minor: Paint — There are some minor signs of wear on the exterior and interior walls.
• Minor: Landscaping — There are some minor signs of wear on the landscaping and curb appeal.