304 E Main St St

Woonsocket, SD 57385

$77,550A-

2 bd · 2.0 ba · 1,452 sqft · Built 1950 · Other · Active · 303 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,073/mo
• Mortgage (P&I): −$407
• Tax + insurance: −$129
• HOA: −$0
• Vac / Maint / Mgmt: −$225
• Net cashflow: $312/mo
• Annual: $3,744/yr
• Cap rate: 11.12%
• Cash-on-cash: 17.24%
• DSCR: 1.77
• 1% rule: 1.38%
• Cash to close: $21,714

Investor read

• This is a 2-bed/2.0-bath other listed at $78k.
• At list price, monthly cash flow is $312 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $78k).
• It's been on market 303 days — a 12% lower offer ($68k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $68k (12.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($536 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#113 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime F, amenities F.
• Woonsocket School District 55-4 (rural): math 40% / reading 50% proficiency, ranked #101 of 148 in SD (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 11 units permitted in Sanborn County in 2024 (0 in 5+ unit buildings).
• Sanborn County population projected at +7% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 15y ago; this cycle's ask has dropped $63k (45%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $65k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 303 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1950 — 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?
• Crime grade is F 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.