130 Otoe St

Douglas, NE 68344

$120,000B

3 bd · 1.0 ba · 1,382 sqft · Built 1970 · SingleFamily · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,263/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$191
• HOA: −$0
• Vac / Maint / Mgmt: −$265
• Net cashflow: $177/mo
• Annual: $2,128/yr
• Cap rate: 8.07%
• Cash-on-cash: 6.33%
• DSCR: 1.28
• 1% rule: 1.05%
• Cash to close: $33,600

Investor read

• This is a 3-bed/1.0-bath single-family listed at $120k.
• At list price, monthly cash flow is $177 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $120k).
• It's been on market 37 days — a 3% lower offer ($116k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $116k (3.0% below list) — sets the bar for market timing.
• In year one you build about $10k of equity ($830 loan paydown + $9k appreciation (7.8% local appreciation)).
• Location reads 63/100 on livability (#407 in NE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, employment A, housing A; Watch: health & safety C-, amenities F, commute F.
• Palmyra District OR1 (rural): math 48% / reading 59% proficiency, ranked #35 of 111 in NE (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Elementary At Bennet (math 47% / reading 57%, grade C-, #200 of 502 statewide, top 46%, 400 students, 20% FRL); Palmyra Middle School (148 students, 19% FRL); Jr-Sr High School At Palmyra (math 47% / reading 62%, grade C-, #80 of 261 statewide, top 37%, 163 students, 24% FRL).
• Market conditions: 4 active listings in the ZIP; 29 units permitted in Otoe County in 2024 (0 in 5+ unit buildings).
• Otoe County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 13y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $57k; list at $120k implies a 111% gain — meaningful room to come down on a strong offer.
• At projected returns (7.8% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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.
• 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?
• 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.