540 A St

Douglas, NE 68344

$119,000B

3 bd · 2.0 ba · 1,404 sqft · Built 2002 · SingleFamily · Active · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,264/mo
• Mortgage (P&I): −$624
• Tax + insurance: −$194
• HOA: −$0
• Vac / Maint / Mgmt: −$265
• Net cashflow: $181/mo
• Annual: $2,167/yr
• Cap rate: 8.11%
• Cash-on-cash: 6.50%
• DSCR: 1.29
• 1% rule: 1.06%
• Cash to close: $33,320

Investor read

• This is a 3-bed/2.0-bath single-family listed at $119k.
• At list price, monthly cash flow is $181 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $119k).
• It's been on market 23 days — a 2% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (1.5% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($823 loan paydown + $9k appreciation (7.8% local appreciation)).
• Location reads 63/100 on livability (#407 in NE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, employment A, housing A; Watch: health & safety C-, amenities F, commute F.
• Palmyra District OR1 (rural): math 48% / reading 59% proficiency, ranked #35 of 111 in NE (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Elementary At Bennet (math 47% / reading 57%, grade C-, #200 of 502 statewide, top 46%, 400 students, 20% FRL); Palmyra Middle School (148 students, 19% FRL); Jr-Sr High School At Palmyra (math 47% / reading 62%, grade C-, #80 of 261 statewide, top 37%, 163 students, 24% FRL).
• Market conditions: 4 active listings in the ZIP; 29 units permitted in Otoe County in 2024 (0 in 5+ unit buildings).
• Otoe County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 3 sale attempts; this cycle's ask has dropped $10k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $72k; list at $119k implies a 65% gain — meaningful room to come down on a strong offer.
• At projected returns (7.8% appreciation + 3.0% rent growth), your $33k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.