305 N Cedar St

Red Cloud, NE 68970

$126,000C-

4 bd · 2.0 ba · 1,368 sqft · Built 1898 · SingleFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,190/mo
• Mortgage (P&I): −$661
• Tax + insurance: −$210
• HOA: −$0
• Vac / Maint / Mgmt: −$250
• Net cashflow: $69/mo
• Annual: $831/yr
• Cap rate: 6.95%
• Cash-on-cash: 2.36%
• DSCR: 1.10
• 1% rule: 0.94%
• Cash to close: $35,280

Investor read

• This is a 4-bed/2.0-bath single-family listed at $126k.
• At list price, monthly cash flow is $69 ($831/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 $119k (5.6% below list).
• It's been on market 41 days — a 3% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (5.6% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($871 loan paydown + $4k appreciation (3.5% local appreciation)).
• Location reads 74/100 on livability (#121 in NE, #4,675 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Red Cloud Community Schools (rural): math 40% / reading 40% proficiency, ranked #219 of 245 in NE (top 89%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Red Cloud Elementary School (math 47% / reading 37%, grade F, #319 of 502 statewide, top 68%, 163 students, 58% FRL); Red Cloud High School (math 44% / reading 44%, grade F, #146 of 261 statewide, top 67%, 106 students, 46% FRL).
• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 2 units permitted in Webster County in 2024 (0 in 5+ unit buildings).
• Webster County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $30k; list at $126k implies a 320% gain — meaningful room to come down on a strong offer.
• At projected returns (3.5% appreciation + 3.0% rent growth), your $35k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 41 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1898 — 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.