2155 4th Ave E

West Fargo, ND 58078

$282,500F

4 bd · 2.0 ba · 1,032 sqft · Built 1979 · SingleFamily · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,523/mo
• Mortgage (P&I): −$1,481
• Tax + insurance: −$292
• HOA: −$0
• Vac / Maint / Mgmt: −$320
• Net cashflow: $-570/mo
• Annual: $-6,839/yr
• Cap rate: 3.87%
• Cash-on-cash: -8.65%
• DSCR: 0.62
• 1% rule: 0.54%
• Cash to close: $79,100

Investor read

• This is a 4-bed/2.0-bath single-family listed at $282k.
• At list price, monthly cash flow is $-570 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (35.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $152k (46.1% below list).
• It's been on market 86 days — a 6% lower offer ($266k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $152k (46.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#10 in ND, #2,868 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A; Watch: health & safety D+, amenities F, commute F.
• West Fargo 6 (suburban): math 41% / reading 42% proficiency, ranked #26 of 53 in ND (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: L E Berger Elementary School (math 37% / reading 27%, grade F, #173 of 236 statewide, top 76%, 370 students, 72% FRL); Cheney Middle School (math 40% / reading 45%, grade D-, #18 of 35 statewide, top 50%, 1,012 students, 43% FRL); West Fargo High School (math 32% / reading 42%, grade F, #71 of 144 statewide, top 52%, 1,423 students, 32% FRL) — zoned schools average 49% FRL vs 24% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+5.1%/yr); 262 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals at typical pace (median 16d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,218 units permitted in Cass County in 2024 (410 in 5+ unit buildings).
• Cass County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $132k; list at $282k implies a 113% gain — meaningful room to come down on a strong offer.
• Cap rate 3.9% vs local median 3.1% in West Fargo — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.