520 2nd Ave SE

Rugby, ND 58368

$53,500B+

2 bd · 1.0 ba · 1,560 sqft · Built 1960 · Other · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,019/mo
• Mortgage (P&I): −$281
• Tax + insurance: −$122
• HOA: −$0
• Vac / Maint / Mgmt: −$214
• Net cashflow: $402/mo
• Annual: $4,826/yr
• Cap rate: 15.31%
• Cash-on-cash: 32.22%
• DSCR: 2.43
• 1% rule: 1.90%
• Cash to close: $14,980

Investor read

• This is a 2-bed/1.0-bath other listed at $54k.
• At list price, monthly cash flow is $402 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $54k).
• It's been on market 80 days — a 6% lower offer ($50k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $50k (6.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($370 loan paydown + $2k appreciation (3.9% local appreciation)).
• Location reads 77/100 on livability (#11 in ND, #3,228 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: commute C-, amenities F, health & safety D-.
• Rugby 5 (town): math 42% / reading 52% proficiency, ranked #20 of 53 in ND (top 38%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 39 active listings in the ZIP; 4 units permitted in Pierce County in 2024 (0 in 5+ unit buildings).
• Pierce County population projected at +12% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 80 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1960 — 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.