516 N Highland Ave Ave · Madison, SD 57042

$649,000

15 bd · 17.0 ba · 6,816 sqft · MultiFamily · 35 Days on market

Built 1970 Fair condition 2,200 sqft lot

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Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +26.9/30.0
• DSCR +9.3/10.0
• ARV discount +7.5/15.0
• 1% rule +7.2/10.0
• Schools +4.1/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 5 units. estimate disagrees with records

Listing remarks MLS

Attention Investors! A rare opportunity awaits in Madison, SD, home to the rapidly growing Dakota State University. This well-maintained 8-plex is the perfect addition to any portfolio, whether you're a seasoned investor or just expanding into multi-family properties. Each of the eight units comes equipped with its own refrigerator and stove, and the building also includes a coin-operated washer and dryer set for added income. With its prime location, strong appeal to a wide range of renters, this 8-plex offers an excellent addition to any investment portfolio.

Key facts

• Eight units equipped
• 2,200 sq ft lot
• Built 1970

Tags

• COIN OPERATED WASHER AND DRYER
• EIGHT UNITS EQUIPPED

What this means for you Summary

Snapshot

• This is a 5 × 3-bed/?-bath units multifamily listed at $649k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $2k ($22k/yr) — positive. Per door: $359/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $649k).
• Recommended offer: $630k (3.0% below list) — sets the bar for market timing.
• Cap rate 9.6% vs local median 2.8% in Madison — 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.

Location & tenants

• Location reads 75/100 on livability (#26 in SD, #3,922 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Madison Central School District 39-2 (town): math 41% / reading 55% proficiency, ranked #36 of 59 in SD (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 130 active listings in the ZIP; 35 units permitted in Lake County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $19k of value loss. Plan a longer hold.
• Lake County population projected at +32% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $182k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 35 days — a 3% lower offer ($630k) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts since 21y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Recommended offer $629,530 (3.0% below list)

Questions for the listing agent

1. It's been on market 35 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 1.22% ✓
• Cap rate: 9.61%
• Cash-on-cash: 11.86%
• DSCR: 1.53
• GRM: 6.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 1.3%
• Equity multiple: 1.05×
• Total profit: $9,304
• Equity at exit: $96,768

10-year hold

• IRR: 11.0%
• Equity multiple: 1.86×
• Total profit: $155,834
• Equity at exit: $56,114

Cash invested: $181,720 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State South Dakota: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

3-day notice; mostly landlord-friendly.

Methodology + full state rankings →

ZIP-level market 57042

• Active inventory: 130
• Price-to-rent: 34.0×

Monthly cashflow live

• Estimated rent: $7,950 medium
• Mortgage (P&I): −$3,403
• Tax est. 1.5%: −$811 /mo · $9,735/yr
• Insurance: −$270
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,670
• Net cashflow: $1,795

Break-even live

Break-even rent $5,677

Max offer price $649,000

Occupancy floor 72%

5-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 5× units	3	—	$7,950
Total (5 units)			$7,950

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $162,250
• Closing costs: $19,470
• Reserves months: —
• Total cash needed: —

Listing history 24 events

1. 2026-06-18
   days on market $649,000 Active 35 DOM
2. 2026-06-17
   days on market $649,000 Active 34 DOM
3. 2026-06-16
   days on market $649,000 Active 33 DOM
4. 2026-06-15
   days on market $649,000 Active 32 DOM
5. 2026-06-13
   days on market $649,000 Active 30 DOM
6. 2026-06-12
   days on market $649,000 Active 29 DOM
7. 2026-06-09
   days on market $649,000 Active 26 DOM
8. 2026-06-08
   days on market $649,000 Active 25 DOM
9. 2026-06-08
   days on market $649,000 Active 24 DOM
10. 2026-06-05
    days on market $649,000 Active 22 DOM
11. 2026-06-04
    days on market $649,000 Active 20 DOM
12. 2026-06-02
    days on market $649,000 Active 19 DOM
13. 2026-06-01
    days on market $649,000 Active 18 DOM
14. 2026-05-31
    days on market $649,000 Active 17 DOM
15. 2026-05-12
    listed $649,000 Active 569-char remark

    Show marketing remark (569 chars)

    Attention Investors! A rare opportunity awaits in Madison, SD, home to the rapidly growing Dakota State University. This well-maintained 8-plex is the perfect addition to any portfolio, whether you're a seasoned investor or just expanding into multi-family properties. Each of the eight units comes equipped with its own refrigerator and stove, and the building also includes a coin-operated washer and dryer set for added income. With its prime location, strong appeal to a wide range of renters, this 8-plex offers an excellent addition to any investment portfolio.

16. 2022-08-01
    soldstatus $580,000 Sold 274-char remark

    Show marketing remark (274 chars)

    Attention Investors! Great opportunity to purchase this well maintained 8 plex in Madison, SD, home of Dakota State University! Updates in last 6 years to include the roof and parking lot! Includes 8 refrigerators, 8 stoves, 1 set coin op washer/dryer, and storage shed!

17. 2022-07-25
    status Pending 274-char remark

    Show marketing remark (274 chars)

    Attention Investors! Great opportunity to purchase this well maintained 8 plex in Madison, SD, home of Dakota State University! Updates in last 6 years to include the roof and parking lot! Includes 8 refrigerators, 8 stoves, 1 set coin op washer/dryer, and storage shed!

18. 2022-05-25
    historical Active - Contingent Misc 274-char remark

    Show marketing remark (274 chars)

    Attention Investors! Great opportunity to purchase this well maintained 8 plex in Madison, SD, home of Dakota State University! Updates in last 6 years to include the roof and parking lot! Includes 8 refrigerators, 8 stoves, 1 set coin op washer/dryer, and storage shed!

19. 2022-05-13
    listed $549,900 Active - New 274-char remark

    Show marketing remark (274 chars)

    Attention Investors! Great opportunity to purchase this well maintained 8 plex in Madison, SD, home of Dakota State University! Updates in last 6 years to include the roof and parking lot! Includes 8 refrigerators, 8 stoves, 1 set coin op washer/dryer, and storage shed!

20. 2008-03-14
    historical
21. 2007-09-14
    listed $189,900
22. 2007-05-15
    historical
23. 2007-01-03
    listed $199,900
24. 2005-10-25
    listed $129,900

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌡 Heat 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $95,400
• − Mortgage interest: −$36,354
• − Property taxes: −$9,735
• − Insurance: −$3,245
• − Repairs & maintenance: −$7,632
• − Management: −$7,632
• − Depreciation: −$18,880
• Taxable income: $11,922
• Est. tax owed @ 24.0%: −$2,861
• After-tax cash flow: $18,684/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 12 photos

Fair 45/100 Moderate rehab

This multi-family property requires moderate renovations to update the kitchen and flooring, and paint the interior walls. The home is in fair condition and has good curb appeal, making it a good investment opportunity.

Repairs flagged

• Moderate kitchen cabinets — dated and worn
• Minor bathroom fixtures — basic and dated
• Moderate flooring — dated and worn carpet

Value-add opportunities

• Both update kitchen cabinets and countertops — modernizing kitchen will appeal to both buyers and renters
• Both paint interior walls — fresh paint will improve curb appeal and interior aesthetics
• Both replace flooring — new flooring will enhance the home's overall appeal and value

Renovation cost estimate screening

Repair item	Severity	Est. cost
kitchen cabinets · dated and worn	Moderate	$3,000–15,000
bathroom fixtures · basic and dated	Minor	$500–3,000
flooring · dated and worn carpet	Moderate	$3,000–15,000
Total estimated repair cost · 3 items		$6,500–33,000

Value-add ROI direction

• Both update kitchen cabinets and countertops — modernizing kitchen will appeal to both buyers and renters ↑
• Both paint interior walls — fresh paint will improve curb appeal and interior aesthetics ↑
• Both replace flooring — new flooring will enhance the home's overall appeal and value ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Madison Central School District 39-2
• NCES district ID: 4639600
• Math proficiency: 41% ▼ -8.00%
• Reading proficiency: 55% ▼ -3.00%
• Median HH income: $47,304
• Composite: 40.82/100
• National rank: #3635
• State rank: #36 of 59 in SD

Livability — Madison

• Score: 75/100
• State rank: #26
• US rank: #3922

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment C Housing A+ Health & safety F User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Madison, SD
• Population (ZIP): 7,900

Population outlook (Lake County) Hauer SSP2

• Today (2025): 15,062 people
• By 2030: 16,261 · +8.0%
• By 2040: 18,290 · +21.4%
• By 2050: 19,881 · +32.0%
• By 2075: 23,907 · +58.7%
• By 2100: 29,664 · +96.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Hispanic / Latino 4% Two or more races 2%
• Common ancestry: Portuguese 20% Iranian 3% Scottish 2%
• Foreign-born: 1% · China
• Languages at home: 98% English-only · German/W. Germanic 1% Spanish 1%

Political lean MEDSL · Lake

• 2024 margin: Solid R (+31.2) · D 33.5% · R 64.7% · Other 1.9%
• 2008→2024 swing: -31.8pp toward R · 2008: 0.7pp · 2024: -31.2pp
• All cycles: 2024: R+31.2 2020: R+27.5 2016: R+25.4 2012: R+11.1 2008: D+0.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -111.13%
• Current HPI: 200.0944
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 0.70%
• F500 in state: 2

Industry mix (Fortune 500 HQ in SD)

Industry	F500 HQs	Revenue
▸Utilities	1	$1B

Price history

+399.6% since first listed

10 events — show timeline

• 2026-05-12 Listed $649,000 REALTOR® Association of the Sioux Empire
• 2022-08-01 Sold (MLS) $580,000 REALTOR® Association of the Sioux Empire
• 2022-07-25 Pending — REALTOR® Association of the Sioux Empire
• 2022-05-25 Contingent — REALTOR® Association of the Sioux Empire
• 2022-05-13 Listed $549,900 REALTOR® Association of the Sioux Empire
• 2008-03-14 Listing Removed — REALTOR® Association of the Sioux Empire
• 2007-09-14 Listed $189,900 REALTOR® Association of the Sioux Empire
• 2007-05-15 Listing Removed — REALTOR® Association of the Sioux Empire
• 2007-01-03 Listed $199,900 REALTOR® Association of the Sioux Empire
• 2005-10-25 Listed $129,900 REALTOR® Association of the Sioux Empire