740 6th Ave

Fairmont, NE 68354

$125,000C-

2 bd · 2.0 ba · 1,236 sqft · Built 1973 · SingleFamily · Active · 24 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,047/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$119
• HOA: −$0
• Vac / Maint / Mgmt: −$220
• Net cashflow: $53/mo
• Annual: $633/yr
• Cap rate: 6.80%
• Cash-on-cash: 1.81%
• DSCR: 1.08
• 1% rule: 0.84%
• Cash to close: $35,000

Investor read

• This is a 2-bed/2.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $53 ($633/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $105k (16.2% below list).
• It's been on market 24 days — a 2% lower offer ($123k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $105k (16.2% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($864 loan paydown + $11k appreciation (8.4% local appreciation)).
• Location reads 66/100 on livability (#313 in NE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Fillmore Central Public Schools (rural): math 56% / reading 54% proficiency, ranked #41 of 111 in NE (top 37%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Fillmore Central Elementary (math 57% / reading 57%, grade C+, #136 of 502 statewide, top 31%, 271 students, 27% FRL); Fillmore Central Middle School (math 52% / reading 52%, grade C+, #43 of 128 statewide, top 36%, 160 students, 43% FRL); Fillmore Central High School (math 64% / reading 54%, grade C+, #49 of 261 statewide, top 26%, 178 students, 38% FRL).
• Market conditions: 5 active listings in the ZIP; 10 units permitted in Fillmore County in 2024 (0 in 5+ unit buildings).
• Fillmore County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $54k; list at $125k implies a 131% gain — meaningful room to come down on a strong offer.
• At projected returns (8.4% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$40k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1973 — 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.
• Schools are D-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.