112 W 5th Ave

Milbank, SD 57252

$104,000B-

5 bd · 3.0 ba · 2,184 sqft · Built 1900 · Other · Pending · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,325/mo
• Mortgage (P&I): −$545
• Tax + insurance: −$173
• HOA: −$0
• Vac / Maint / Mgmt: −$278
• Net cashflow: $328/mo
• Annual: $3,933/yr
• Cap rate: 10.07%
• Cash-on-cash: 13.51%
• DSCR: 1.60
• 1% rule: 1.27%
• Cash to close: $29,120

Investor read

• This is a 5-bed/3.0-bath other listed at $104k.
• At list price, monthly cash flow is $328 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $104k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $719 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#19 in SD, #3,182 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Milbank School District 25-4 (town): math 46% / reading 61% proficiency, ranked #19 of 59 in SD (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Milbank Elementary - 03 (math 52% / reading 57%, grade C, #87 of 253 statewide, top 38%, 437 students, 34% FRL); Milbank Middle School - 02 (math 47% / reading 59%, grade C+, #43 of 143 statewide, top 30%, 229 students, 26% FRL); Milbank High School - 01 (math 32% / reading 72%, grade D+, #65 of 151 statewide, top 43%, 359 students, 22% FRL) — zoned schools at 28% FRL track the district average.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 37 active listings in the ZIP; 22 units permitted in Grant County in 2024 (0 in 5+ unit buildings).
• Grant County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $29k cash investment doubles in ~9 years — after that, you're playing with house money.

Questions for listing agent

• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.