201 Central Ave

Finley, ND 58230

$44,900B+

2 bd · 2.0 ba · 1,830 sqft · Built 1910 · Other · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $991/mo
• Mortgage (P&I): −$235
• Tax + insurance: −$164
• HOA: −$0
• Vac / Maint / Mgmt: −$208
• Net cashflow: $383/mo
• Annual: $4,593/yr
• Cap rate: 16.52%
• Cash-on-cash: 36.54%
• DSCR: 2.63
• 1% rule: 2.21%
• Cash to close: $12,572

Investor read

• This is a 2-bed/2.0-bath other listed at $45k.
• At list price, monthly cash flow is $383 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($991 rent vs $45k).
• It's been on market 66 days — a 6% lower offer ($42k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $42k (6.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($310 loan paydown + $1k appreciation (3.0% local appreciation)).
• Location reads 70/100 on livability (#91 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A; Watch: crime C-, health & safety D+, amenities F.
• Finley-Sharon 19 (rural): math 50% / reading 60% proficiency, ranked #23 of 169 in ND (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Finley-Sharon High School (math 70% / reading 50%, grade C+, #7 of 144 statewide, top 5%, 45 students, 53% FRL) — zoned schools average 53% FRL vs 20% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.9% of price; built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 4 units permitted in Steele County in 2024 (0 in 5+ unit buildings).
• Steele County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $7k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 66 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.