10641 23rd St NW

Mandaree, ND 58847

$115,999B

4 bd · 2.5 ba · 1,900 sqft · Built 1950 · Other · Active · 128 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,538/mo
• Mortgage (P&I): −$608
• Tax + insurance: −$104
• HOA: −$0
• Vac / Maint / Mgmt: −$323
• Net cashflow: $502/mo
• Annual: $6,026/yr
• Cap rate: 11.49%
• Cash-on-cash: 18.55%
• DSCR: 1.83
• 1% rule: 1.33%
• Cash to close: $32,480

Investor read

• This is a 4-bed/2.5-bath other listed at $116k.
• At list price, monthly cash flow is $502 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $116k).
• It's been on market 128 days — a 12% lower offer ($102k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $102k (12.0% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($802 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 57/100 on livability (#309 in ND) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A; Watch: health & safety D, crime D-, amenities F.
• Mckenzie County 1 (rural): math 33% / reading 36% proficiency, ranked #34 of 53 in ND (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Badlands Elementary School (math 37% / reading 47%, grade F, #118 of 236 statewide, top 54%, 566 students, 42% FRL); Watford City Middle School (math 30% / reading 36%, grade F, #29 of 35 statewide, top 82%, 455 students, 33% FRL); Watford City High School (math 22% / reading 22%, grade F, #128 of 144 statewide, top 90%, 477 students, 25% FRL).
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 38 units permitted in McKenzie County in 2024 (0 in 5+ unit buildings).
• McKenzie County population projected at +180% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 128 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D 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.