519 7th St NE

Devils Lake, ND 58301

$55,000B-

4 bd · 2.0 ba · 1,536 sqft · Built 1903 · Other · Active · 186 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,302/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$39
• HOA: −$0
• Vac / Maint / Mgmt: −$273
• Net cashflow: $701/mo
• Annual: $8,412/yr
• Cap rate: 21.59%
• Cash-on-cash: 54.63%
• DSCR: 3.43
• 1% rule: 2.37%
• Cash to close: $15,400

Investor read

• This is a 4-bed/2.0-bath other listed at $55k.
• At list price, monthly cash flow is $701 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• It's been on market 186 days — a 12% lower offer ($48k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $48k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#97 in ND) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Devils Lake 1 (town): math 34% / reading 35% proficiency, ranked #35 of 53 in ND (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Sweetwater Elementary School (math 62% / reading 47%, grade C, #39 of 236 statewide, top 21%, 265 students, 49% FRL); Central Middle School (math 31% / reading 38%, grade F, #24 of 35 statewide, top 71%, 518 students, 42% FRL); Devils Lake High School (math 22% / reading 22%, grade F, #128 of 144 statewide, top 90%, 500 students, 36% FRL) — zoned schools at 43% FRL track the district average.
• Watch-outs: built in 1903 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 45 active listings in the ZIP; 6 units permitted in Ramsey County in 2024 (5 in 5+ unit buildings).
• Ramsey County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 186 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1903 — 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.
• 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.