409 S Way Ave

Sutton, NE 68979

$85,000B

2 bd · 1.0 ba · 875 sqft · Built 1880 · SingleFamily · Pending · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,131/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$113
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $335/mo
• Annual: $4,016/yr
• Cap rate: 11.02%
• Cash-on-cash: 16.87%
• DSCR: 1.75
• 1% rule: 1.33%
• Cash to close: $23,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $85k.
• At list price, monthly cash flow is $335 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($588 loan paydown + $5k appreciation (5.4% local appreciation)).
• Location reads 76/100 on livability (#82 in NE, #3,427 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Sutton Public Schools (rural): math 58% / reading 56% proficiency, ranked #27 of 111 in NE (top 24%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Sutton Elementary School (math 52% / reading 57%, grade C, #161 of 502 statewide, top 38%, 240 students, 42% FRL); Sutton Secondary School (math 62% / reading 57%, grade C+, #49 of 261 statewide, top 26%, 180 students, 33% FRL) — zoned schools average 38% FRL vs 22% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1880 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 10 active listings in the ZIP; 6 units permitted in Clay County in 2024 (0 in 5+ unit buildings).
• Clay County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $32k; list at $85k implies a 166% gain — meaningful room to come down on a strong offer.
• At projected returns (5.4% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1880 — 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.
• 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.