489 Commercial Ave

Wolsey, SD 57384

$113,000B-

3 bd · 1.0 ba · 2,191 sqft · Built 1908 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,229/mo
• Mortgage (P&I): −$593
• Tax + insurance: −$80
• HOA: −$0
• Vac / Maint / Mgmt: −$258
• Net cashflow: $298/mo
• Annual: $3,578/yr
• Cap rate: 9.46%
• Cash-on-cash: 11.31%
• DSCR: 1.50
• 1% rule: 1.09%
• Cash to close: $31,640

Investor read

• This is a 3-bed/1.0-bath single-family listed at $113k.
• At list price, monthly cash flow is $298 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $113k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $4k of equity ($781 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 61/100 on livability (#234 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B; Watch: employment C-, health & safety C-, schools D.
• Wolsey Wessington School District 02-6 (rural): math 30% / reading 35% proficiency, ranked #128 of 148 in SD (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 30 units permitted in Beadle County in 2024 (6 in 5+ unit buildings).
• Beadle County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1908 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.