300 S Main St

Kimball, SD 57355

$119,000C+

4 bd · 2.0 ba · 1,560 sqft · Built 1922 · Other · Pending · 16 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,302/mo
• Mortgage (P&I): −$624
• Tax + insurance: −$134
• HOA: −$0
• Vac / Maint / Mgmt: −$273
• Net cashflow: $270/mo
• Annual: $3,241/yr
• Cap rate: 9.02%
• Cash-on-cash: 9.73%
• DSCR: 1.43
• 1% rule: 1.09%
• Cash to close: $33,320

Investor read

• This is a 4-bed/2.0-bath other listed at $119k.
• At list price, monthly cash flow is $270 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $119k).
• It's been on market 16 days — a 2% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($823 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#117 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, amenities F, commute F.
• Kimball School District 07-2 (rural): math 45% / reading 55% proficiency, ranked #70 of 148 in SD (top 47%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Kimball Elementary - 02 (math 74% / reading 54%, grade B, #39 of 253 statewide, top 19%, 123 students, 23% FRL); Kimball Middle School - 04 (math 42% / reading 57%, grade C, #55 of 143 statewide, top 46%, 96 students, 31% FRL); Kimball High School - 01 (math 24% / reading 24%, grade F, #135 of 151 statewide, top 96%, 79 students, 23% FRL).
• Watch-outs: built in 1922 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 10 units permitted in Brule County in 2024 (0 in 5+ unit buildings).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $33k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1922 — 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?
• 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.