200 2nd Ave W

Lignite, ND 58752

$69,500B

2 bd · 1.0 ba · 1,120 sqft · Built 1992 · SingleFamily · Active · 506 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $981/mo
• Mortgage (P&I): −$364
• Tax + insurance: −$116
• HOA: −$0
• Vac / Maint / Mgmt: −$206
• Net cashflow: $295/mo
• Annual: $3,537/yr
• Cap rate: 11.38%
• Cash-on-cash: 18.18%
• DSCR: 1.81
• 1% rule: 1.41%
• Cash to close: $19,460

Investor read

• This is a 2-bed/1.0-bath single-family listed at $70k.
• At list price, monthly cash flow is $295 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($981 rent vs $70k).
• It's been on market 506 days — a 12% lower offer ($61k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $61k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($481 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 67/100 on livability (#121 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime C-, health & safety D, amenities F.
• Burke Central 36 (rural): math 40% / reading 40% proficiency, ranked #96 of 169 in ND (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Burke Central Elementary School (math 50% / reading 30%, grade F, #135 of 236 statewide, top 57%, 52 students, 40% FRL); Burke Central High School (math 30% / reading 50%, grade F, #51 of 144 statewide, top 38%, 31 students, 42% FRL) — zoned schools average 41% FRL vs 25% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 1 active listings in the ZIP; 3 units permitted in Burke County in 2024 (0 in 5+ unit buildings).
• Burke County population projected at +80% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $5k (7%) 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 $19k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 506 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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.
• 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.