505 N Commercial St

Clark, SD 57225

$130,000B-

3 bd · 1.5 ba · 1,334 sqft · Built 1900 · SingleFamily · Active · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,778/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$217
• HOA: −$0
• Vac / Maint / Mgmt: −$583
• Net cashflow: $1,296/mo
• Annual: $15,553/yr
• Cap rate: 18.26%
• Cash-on-cash: 42.73%
• DSCR: 2.90
• 1% rule: 2.14%
• Cash to close: $36,400

Investor read

• This is a 3-bed/1.5-bath single-family listed at $130k.
• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $130k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $4k of equity ($899 loan paydown + $3k appreciation (2.5% local appreciation)).
• Location reads 67/100 on livability (#109 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime B; Watch: health & safety C-, amenities F, commute F.
• Clark School District 12-2 (rural): math 30% / reading 47% proficiency, ranked #53 of 59 in SD (top 90%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Clark Elementary - 02 (math 44% / reading 54%, grade D, #115 of 253 statewide, top 52%, 201 students, 29% FRL); Clark High School - 01 (math 50% / reading 70%, grade C+, #31 of 151 statewide, top 32%, 102 students, 21% FRL) — zoned schools average 25% FRL vs 44% district-wide (19 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 54% at this address vs 38% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Clark School District 12-2 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 7 active listings in the ZIP; 9 units permitted in Clark County in 2024 (0 in 5+ unit buildings).
• At projected returns (2.5% appreciation + 3.0% rent growth), your $36k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1900 — 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.
• 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.