305-307 S 23rd St S

Fargo, ND 58103

$255,000F

6 bd · 4.0 ba · 2,172 sqft · Built 1976 · MultiFamily · Active · 88 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,918/mo
• Mortgage (P&I): −$1,337
• Tax + insurance: −$425
• HOA: −$0
• Vac / Maint / Mgmt: −$403
• Net cashflow: $-247/mo
• Annual: $-2,964/yr
• Cap rate: 5.13%
• Cash-on-cash: -4.15%
• DSCR: 0.82
• 1% rule: 0.75%
• Cash to close: $71,400

Investor read

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $255k. Condition is rated fair.
• At list price, monthly cash flow is $-247 ($-3k/yr) — negative. Per door: $-124/mo.
• To cash-flow at today's rent, offer at most $219k (14.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $192k (24.8% below list).
• It's been on market 88 days — a 6% lower offer ($240k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $192k (24.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#1 in ND, #605 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F.
• Fargo 1 (urban): math 41% / reading 44% proficiency, ranked #28 of 53 in ND (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Jefferson Elementary School (math 17% / reading 17%, grade F, #223 of 236 statewide, top 95%, 295 students, 75% FRL); Carl Ben Eielson Middle School (math 30% / reading 38%, grade F, #26 of 35 statewide, top 79%, 615 students, 41% FRL); South High School (math 27% / reading 37%, grade F, #85 of 144 statewide, top 62%, 961 students, 32% FRL) — zoned schools average 49% FRL vs 25% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 28% at this address vs 42% district-wide (-15 pts) — the specific schools serving this property underperform the Fargo 1 average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising fast (+5.0%/yr); 213 active listings in the ZIP; 1,218 units permitted in Cass County in 2024 (410 in 5+ unit buildings).
• Cass County population projected at +69% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.1% vs local median 2.5% in Fargo — 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.
• This rent runs 39% of the median local income ($59k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• It's been on market 88 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Worn appearance suggests minor wear and tear.
• Minor: Bathroom fixtures — Basic appearance suggests need for replacement.
• Moderate: HVAC units — Older units may need maintenance or replacement.