403 E Pleasant St

Elk Point, SD 57025

$99,000D

1 bd · 2.0 ba · 757 sqft · Built 1890 · Other · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $830/mo
• Mortgage (P&I): −$519
• Tax + insurance: −$119
• HOA: −$0
• Vac / Maint / Mgmt: −$174
• Net cashflow: $18/mo
• Annual: $213/yr
• Cap rate: 6.51%
• Cash-on-cash: 0.77%
• DSCR: 1.03
• 1% rule: 0.84%
• Cash to close: $27,720

Investor read

• This is a 1-bed/2.0-bath other listed at $99k.
• At list price, monthly cash flow is $18 ($213/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $83k (16.1% below list).
• It's been on market 18 days — a 2% lower offer ($98k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $83k (16.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $684 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#51 in SD) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Elk Point-Jefferson School District 61-7 (rural): math 45% / reading 53% proficiency, ranked #31 of 59 in SD (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Elk Point-Jefferson Elementary - 02 (math 42% / reading 52%, grade D-, #134 of 253 statewide, top 55%, 321 students, 15% FRL); Elk Point-Jefferson Middle School - 03 (math 47% / reading 57%, grade C+, #46 of 143 statewide, top 37%, 153 students, 11% FRL); Elk Point-Jefferson High School - 01 (math 34% / reading 54%, grade F, #111 of 151 statewide, top 75%, 214 students, 12% FRL) — zoned schools at 13% FRL track the district average.
• Watch-outs: built in 1890 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 79 active listings in the ZIP; 46 units permitted in Union County in 2024 (8 in 5+ unit buildings).
• Union County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 4y 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 $36k; list at $99k implies a 175% gain — meaningful room to come down on a strong offer.

Questions for listing agent

• Built in 1890 — 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.