106 E 5th St St

Egan, SD 57024

$125,000C-

3 bd · 1.0 ba · 1,021 sqft · Built 1910 · SingleFamily · Active · 161 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,020/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$177
• HOA: −$0
• Vac / Maint / Mgmt: −$214
• Net cashflow: $-26/mo
• Annual: $-317/yr
• Cap rate: 6.04%
• Cash-on-cash: -0.91%
• DSCR: 0.96
• 1% rule: 0.82%
• Cash to close: $35,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $-26 ($-317/yr) — negative.
• To cash-flow at today's rent, offer at most $120k (3.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $102k (18.4% below list).
• It's been on market 161 days — a 12% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $102k (18.4% below list) — sets the bar for 1% rule.
• In year one you build about $9k of equity ($864 loan paydown + $8k appreciation (6.4% local appreciation)).
• Location reads 58/100 on livability (#279 in SD) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: employment D, crime F, amenities F.
• Colman-Egan School District 50-5 (rural): math 40% / reading 40% proficiency, ranked #111 of 148 in SD (top 75%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Colman Elementary - 03 (math 42% / reading 57%, grade D, #115 of 253 statewide, top 52%, 156 students, 14% FRL); Colman-Egan Jr. High - 02 (math 44% / reading 64%, grade B-, #36 of 143 statewide, top 29%, 47 students, 13% FRL); Colman-Egan High School - 01 (math 30% / reading 50%, grade F, #114 of 151 statewide, top 81%, 93 students, 20% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 23 units permitted in Moody County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 5y ago; this cycle's ask has dropped $15k (11%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (6.4% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 161 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1910 — 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 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?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.