502 S Lee Ave Ave · Madison, SD 57042

$179,900

4 bd · 2.0 ba · 1,638 sqft · Other public records · 53 Days on market

Built 1960 6,752 sqft lot

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Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +11.3/30.0
• ARV discount +7.5/15.0
• Schools +4.1/10.0
• Livability +3.8/5.0
• DSCR +3.3/10.0
• 1% rule +3.2/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Nicely updated 3 plus bedroom two bath home with single attached and single detached garage. Large living spaces and large eat-in kitchen combined with 3 bedrooms on the main make this a desirable property. Lots of fresh paint and new carpets to make this a move in ready home. You will love all the storage and the garage space in this nice family ranch style home!

Key facts

• Large living area
• Vinyl siding
• Corner lot

Tags

• MAIN FLOOR LIVING ROOM
• LARGE LIVING AREA
• CORNER LOT
• VINYL SIDING
• DETACHED SINGLE-STALL GARAGE

Property features AI

Exterior

• Parking: Two garage spaces; Combination of attached and detached garages (garage dimensions listed as 16x22 and 16x22)
• Utilities: Public water; Public sewer; Property located on publicly maintained asphalt road with curb and gutter; Land is owned
• Home design: Single-family ranch-style home; Above-grade finished living area and finished lower level
• Construction: Vinyl siding; Block foundation; Composition roof; Built with finished space above and below grade
• Exterior features: Lot dimensions approximately 49 x 135

Interior

• Kitchen: Equipped with refrigerator, microwave, electric range/stove, and dishwasher
• Bedrooms: Main-level primary bedroom measuring approximately 11 x 14; Main-level second bedroom approximately 11 x 11; Main-level third bedroom approximately 7 x 17; Additional non-conforming bedroom in the basement (approx. 10 x 11)
• Flooring: Carpet; Laminate; Vinyl
• Bathrooms: Two 3/4 bathrooms (one on the main level and one in the lower level)
• Heating & cooling: Natural gas heating; Natural gas water heater; Central air conditioning
• Interior features: Three or more bedrooms on the same level; Master bedroom on the main level; Full basement
• Laundry & utility: Washer and dryer included

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath other listed at $180k.

Deal economics

• At list price, monthly cash flow is $-65 ($-781/yr) — negative.
• To cash-flow at today's rent, offer at most $168k (6.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $147k (18.1% below list).
• Recommended offer: $147k (18.1% below list) — sets the bar for 1% rule.
• Cap rate 5.9% vs local median 2.8% in Madison — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 75/100 on livability (#26 in SD, #3,922 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Madison Central School District 39-2 (town): math 41% / reading 55% proficiency, ranked #36 of 59 in SD (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Madison Elementary - 07 (math 48% / reading 55%, grade C-, #109 of 253 statewide, top 43%, 508 students, 24% FRL); Madison Middle School - 02 (math 36% / reading 51%, grade D, #89 of 143 statewide, top 63%, 257 students, 20% FRL); Madison High School - 01 (math 37% / reading 72%, grade C-, #53 of 151 statewide, top 41%, 382 students, 16% FRL) — zoned schools at 20% FRL track the district average.
• Market conditions: 130 active listings in the ZIP; 35 units permitted in Lake County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Lake County population projected at +32% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 53 days — a 3% lower offer ($175k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 17y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Recommended offer $147,251 (18.1% below list)

Questions for the listing agent

1. 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?
2. It's been on market 53 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
3. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
7. 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.
8. 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.
9. 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.

Investment metrics

• 1% rule: 0.82% ✗
• Cap rate: 5.86%
• Cash-on-cash: -1.55%
• DSCR: 0.93
• GRM: 10.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -18.9%
• Equity multiple: 0.34×
• Total profit: $-33,285
• Equity at exit: $26,824

10-year hold

• IRR: -11.3%
• Equity multiple: 0.32×
• Total profit: $-34,269
• Equity at exit: $15,554

Cash invested: $50,372 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 83 Strongly Landlord-Friendly
• State South Dakota: 83 Strongly Landlord-Friendly · R+16
• County: — inherits STATE
• City: — inherits STATE

3-day notice; mostly landlord-friendly.

Methodology + full state rankings →

ZIP-level market 57042

• Active inventory: 130
• Price-to-rent: 10.2×

Monthly cashflow live

• Estimated rent: $1,473 medium
• Mortgage (P&I): −$943
• Tax from tax record: −$210 /mo · $2,520/yr
• Insurance: −$75
• HOA: −$0
• Vacancy / Maint / Mgmt: −$309
• Net cashflow: $-65

Break-even live

Break-even rent $1,555

Max offer price $168,400

Occupancy floor 99%

Sensitivity live

Price	-10% $37	-5% $-14	+0% $-65	+5% $-116	+10% $-167
Rent	-10% $-181	-5% $-123	+0% $-65	+5% $-7	+10% $51
Rate	-1.0pp $25	-0.5pp $-19	base $-65	+0.5pp $-112	+1.0pp $-159

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $44,975
• Closing costs: $5,397
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-04-28
   status Pending
2. 2026-03-06
   listed $179,900 Active
3. 2015-04-11
   listed $86,500 366-char remark

   Show marketing remark (366 chars)

   Nicely updated 3 plus bedroom two bath home with single attached and single detached garage. Large living spaces and large eat-in kitchen combined with 3 bedrooms on the main make this a desirable property. Lots of fresh paint and new carpets to make this a move in ready home. You will love all the storage and the garage space in this nice family ranch style home!

4. 2009-06-10
   listed $64,900 269-char remark

   Show marketing remark (269 chars)

   This home has been gutted, remodled, & added on since the 1970's & early 80's. You will be surprised when you get inside. Roomy kitchen, 3 plus bedrooms, 2 baths. main floor & lower level laundry, 2 garages plus familyroom. Clean & move-in ready.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast SD · Resets to sale price

• Current annual tax: $2,520 · $210/mo
• Projected year-2 tax: $2,520 · $210/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $17,670
• − Mortgage interest: −$10,077
• − Property taxes: −$2,520
• − Insurance: −$900
• − Repairs & maintenance: −$1,414
• − Management: −$1,414
• − Depreciation: −$5,233
• Taxable loss: −$3,887
• Est. tax savings @ 24.0%: +$933
• After-tax cash flow: $152/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Madison Central School District 39-2
• NCES district ID: 4639600
• Math proficiency: 41% ▼ -8.00%
• Reading proficiency: 55% ▼ -3.00%
• Median HH income: $47,304
• Composite: 40.82/100
• National rank: #3635
• State rank: #36 of 59 in SD

Livability — Madison

• Score: 75/100
• State rank: #26
• US rank: #3922

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment C Housing A+ Health & safety F User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Madison, SD
• Population (ZIP): 7,900

Population outlook (Lake County) Hauer SSP2

• Today (2025): 15,062 people
• By 2030: 16,261 · +8.0%
• By 2040: 18,290 · +21.4%
• By 2050: 19,881 · +32.0%
• By 2075: 23,907 · +58.7%
• By 2100: 29,664 · +96.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Hispanic / Latino 4% Two or more races 2%
• Common ancestry: Portuguese 20% Iranian 3% Scottish 2%
• Foreign-born: 1% · China
• Languages at home: 98% English-only · German/W. Germanic 1% Spanish 1%

Political lean MEDSL · Lake

• 2024 margin: Solid R (+31.2) · D 33.5% · R 64.7% · Other 1.9%
• 2008→2024 swing: -31.8pp toward R · 2008: 0.7pp · 2024: -31.2pp
• All cycles: 2024: R+31.2 2020: R+27.5 2016: R+25.4 2012: R+11.1 2008: D+0.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -111.13%
• Current HPI: 200.0944
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 0.70%
• F500 in state: 2

Industry mix (Fortune 500 HQ in SD)

Industry	F500 HQs	Revenue
▸Utilities	1	$1B

Price history

+177.2% since first listed

4 events — show timeline

• 2026-04-28 Pending — REALTOR® Association of the Sioux Empire
• 2026-03-06 Listed $179,900 REALTOR® Association of the Sioux Empire
• 2015-04-11 Listed $86,500 REALTOR® Association of the Sioux Empire
• 2009-06-10 Listed $64,900 REALTOR® Association of the Sioux Empire

Property tax history

+5.0%/yr

Latest (2025): $2,520 · +2.0% YoY. Source: county tax records.