218 N 6

Howells, NE 68641

$110,000C

2 bd · 2.0 ba · 988 sqft · Built 1951 · SingleFamily · Active · 189 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $895/mo
• Mortgage (P&I): −$577
• Tax + insurance: −$110
• HOA: −$0
• Vac / Maint / Mgmt: −$188
• Net cashflow: $21/mo
• Annual: $249/yr
• Cap rate: 6.52%
• Cash-on-cash: 0.81%
• DSCR: 1.04
• 1% rule: 0.81%
• Cash to close: $30,800

Investor read

• This is a 2-bed/2.0-bath single-family listed at $110k.
• At list price, monthly cash flow is $21 ($249/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 $90k (18.6% below list).
• It's been on market 189 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $90k (18.6% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($761 loan paydown + $5k appreciation (4.9% local appreciation)).
• Location reads 77/100 on livability (#67 in NE, #3,015 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Howells-Dodge Consolidated Schools (rural): math 75% / reading 70% proficiency, ranked #11 of 245 in NE (top 4%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Howells-Dodge Elementary School/Howells (71 students, 30% FRL); Howells Senior High School (math 52% / reading 67%, grade C+, #49 of 261 statewide, top 26%, 146 students, 35% FRL) — zoned schools at 32% FRL track the district average.
• Zoned-school proficiency averages 60% at this address vs 72% district-wide (-13 pts) — the specific schools serving this property underperform the Howells-Dodge Consolidated Schools average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1951 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 40 units permitted in Colfax County in 2024 (0 in 5+ unit buildings).
• Colfax County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 7y ago; this cycle's ask has dropped $20k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $78k; 41% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (4.9% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 189 days. Have you received any prior offers? Is the seller open to a 19% concession, seller financing, or rate buy-down credit?
• Built in 1951 — 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 A-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?
• 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.