302 Main St

Bison, SD 57620

$174,900D

4 bd · 1.0 ba · 1,843 sqft · Built 1970 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,423/mo
• Mortgage (P&I): −$917
• Tax + insurance: −$278
• HOA: −$0
• Vac / Maint / Mgmt: −$299
• Net cashflow: $-71/mo
• Annual: $-857/yr
• Cap rate: 5.80%
• Cash-on-cash: -1.75%
• DSCR: 0.92
• 1% rule: 0.81%
• Cash to close: $48,972

Investor read

• This is a 4-bed/1.0-bath single-family listed at $175k.
• At list price, monthly cash flow is $-71 ($-857/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (7.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (18.6% below list).
• It's been on market 20 days — a 2% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $142k (18.6% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($1k loan paydown + $4k appreciation (2.5% local appreciation)).
• Location reads 67/100 on livability (#107 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D+, crime D, amenities F.
• Bison School District 52-1 (rural): math 40% / reading 45% proficiency, ranked #106 of 148 in SD (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bison Elementary - 02 (math 44% / reading 44%, grade F, #144 of 253 statewide, top 63%, 67 students, 28% FRL); Bison Jr. High - 04 (math 10% / reading 50%, 24 students, 12% FRL); Bison High School - 01 (math 24% / reading 75%, grade D+, #69 of 151 statewide, top 65%, 43 students, 44% FRL) — zoned schools at 28% FRL track the district average.
• Market conditions: 3 active listings in the ZIP.
• Perkins County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (2.5% appreciation + 3.0% rent growth), your $49k cash investment doubles in ~8 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$35k 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?
• Built in 1970 — 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.
• Crime grade is D 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?
• 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.