511 Triple L Loop

Spearfish, SD 57783

$85,000B-

2 bd · 2.0 ba · 924 sqft · Built 1986 · Manufactured · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,675/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$63
• HOA: −$0
• Vac / Maint / Mgmt: −$352
• Net cashflow: $815/mo
• Annual: $9,776/yr
• Cap rate: 17.79%
• Cash-on-cash: 41.08%
• DSCR: 2.83
• 1% rule: 1.97%
• Cash to close: $23,800

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $85k.
• At list price, monthly cash flow is $815 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $85k).
• 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 $588 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 68/100 on livability (#83 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-, schools B+; Watch: amenities F, commute F.
• Spearfish School District 40-2 (town): math 45% / reading 56% proficiency, ranked #32 of 59 in SD (top 54%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 288 active listings in the ZIP; 217 units permitted in Lawrence County in 2024 (11 in 5+ unit buildings).
• Lawrence County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 17.8% vs local median 2.2% in Spearfish — 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

• 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 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.