1676 Wood Lily Ln

Custer, SD 57730

$129,500C-

2 bd · 2.0 ba · 1,216 sqft · Built 2021 · Manufactured · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,343/mo
• Mortgage (P&I): −$679
• Tax + insurance: −$187
• HOA: −$0
• Vac / Maint / Mgmt: −$282
• Net cashflow: $195/mo
• Annual: $2,342/yr
• Cap rate: 8.10%
• Cash-on-cash: 6.46%
• DSCR: 1.29
• 1% rule: 1.04%
• Cash to close: $36,260

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $130k. Condition is rated good.
• At list price, monthly cash flow is $195 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $130k).
• It's been on market 60 days — a 3% lower offer ($126k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $126k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $895 of loan paydown is wiped out by about $4k 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).
• 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.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.1% 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

• It's been on market 60 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.