310 S 3rd St St

Arlington, SD 57212

$229,900D

3 bd · 2.0 ba · 972 sqft · Built 1896 · Other · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,095/mo
• Mortgage (P&I): −$1,206
• Tax + insurance: −$140
• HOA: −$0
• Vac / Maint / Mgmt: −$230
• Net cashflow: $-481/mo
• Annual: $-5,768/yr
• Cap rate: 3.78%
• Cash-on-cash: -8.96%
• DSCR: 0.60
• 1% rule: 0.48%
• Cash to close: $64,372

Investor read

• This is a 3-bed/2.0-bath other listed at $230k.
• At list price, monthly cash flow is $-481 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $145k (36.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (52.4% below list).
• It's been on market 99 days — a 9% lower offer ($209k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $110k (52.4% below list) — sets the bar for 1% rule.
• In year one you build about $25k of equity ($2k loan paydown + $23k appreciation (10.0% local appreciation)).
• Location reads 67/100 on livability (#94 in SD) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Arlington School District 38-1 (rural): math 75% / reading 65% proficiency, ranked #3 of 148 in SD (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 16% free/reduced lunch — higher-income household profile.
• Watch-outs: built in 1896 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 22 units permitted in Kingsbury County in 2024 (0 in 5+ unit buildings).
• Kingsbury County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts; this cycle's ask has dropped $20k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$40k 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?
• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 52% concession, seller financing, or rate buy-down credit?
• Built in 1896 — 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.
• 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.