650 Main St

Centerville, SD 57014

$159,500D

3 bd · 1.0 ba · 1,434 sqft · Built 1899 · Other · Under Contract · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,175/mo
• Mortgage (P&I): −$836
• Tax + insurance: −$165
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $-74/mo
• Annual: $-886/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.98%
• DSCR: 0.91
• 1% rule: 0.74%
• Cash to close: $44,660

Investor read

• This is a 3-bed/1.0-bath other listed at $160k.
• At list price, monthly cash flow is $-74 ($-886/yr) — negative.
• To cash-flow at today's rent, offer at most $146k (8.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (26.4% below list).
• It's been on market 15 days — a 2% lower offer ($157k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (26.4% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($1k loan paydown + $5k appreciation (3.4% local appreciation)).
• Location reads 64/100 on livability (#162 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, employment D+, amenities F.
• Centerville School District 60-1 (rural): math 45% / reading 55% proficiency, ranked #67 of 148 in SD (top 45%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Centerville Elementary - 02 (math 62% / reading 57%, grade B-, #56 of 253 statewide, top 29%, 128 students, 21% FRL); Centerville Middle School - 03 (math 52% / reading 57%, grade B-, #36 of 143 statewide, top 29%, 74 students, 16% FRL); Centerville High School - 01 (math 50% / reading 30%, grade F, #114 of 151 statewide, top 81%, 88 students, 15% FRL).
• Watch-outs: built in 1899 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 15 active listings in the ZIP; 29 units permitted in Turner County in 2024 (0 in 5+ unit buildings).
• Turner County population projected at -13% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.4% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

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?
• Built in 1899 — 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 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?
• 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?
• 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.