309 2nd St SW

Lakota, ND 58344

$98,500C+

2 bd · 1.0 ba · 1,080 sqft · Built 1978 · Other · Pending · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $956/mo
• Mortgage (P&I): −$517
• Tax + insurance: −$69
• HOA: −$0
• Vac / Maint / Mgmt: −$201
• Net cashflow: $170/mo
• Annual: $2,035/yr
• Cap rate: 8.36%
• Cash-on-cash: 7.38%
• DSCR: 1.33
• 1% rule: 0.97%
• Cash to close: $27,580

Investor read

• This is a 2-bed/1.0-bath other listed at $98k.
• At list price, monthly cash flow is $170 ($2k/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 $96k (3.0% below list).
• It's been on market 20 days — a 2% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $96k (3.0% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($681 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 76/100 on livability (#19 in ND, #3,699 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Lakota 66 (rural): math 55% / reading 50% proficiency, ranked #39 of 169 in ND (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Lakota Elementary School (math 54% / reading 44%, grade D, #65 of 236 statewide, top 37%, 117 students, 30% FRL); Lakota High School (math 24% / reading 64%, grade F, #33 of 144 statewide, top 32%, 67 students, 39% FRL).
• Market conditions: 3 active listings in the ZIP; 1 units permitted in Nelson County in 2024 (0 in 5+ unit buildings).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1978 — 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.