402 Violet St

Rexburg, ID 83440

$135,000D

3 bd · 2.0 ba · 1,514 sqft · Built 1979 · Other · Pending · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,565/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$86
• HOA: −$519
• Vac / Maint / Mgmt: −$329
• Net cashflow: $-76/mo
• Annual: $-916/yr
• Cap rate: 5.61%
• Cash-on-cash: -2.42%
• DSCR: 0.89
• 1% rule: 1.16%
• Cash to close: $37,800

Investor read

• This is a 3-bed/2.0-bath other listed at $135k.
• At list price, monthly cash flow is $-76 ($-916/yr) — negative.
• To cash-flow at today's rent, offer at most $122k (10.0% below list).
• Meets the 1% rule at list price ($2k rent vs $135k).
• It's been on market 68 days — a 6% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (10.0% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $933 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#25 in ID, #3,515 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, amenities A+, health & safety A+; Watch: housing C-, commute F, employment F.
• Madison District (town): math 44% / reading 47% proficiency, ranked #50 of 92 in ID (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Adams Elementary School (math 57% / reading 57%, grade C+, #88 of 357 statewide, top 28%, 277 students, 42% FRL); Madison Junior High School (math 29% / reading 36%, grade F, #88 of 109 statewide, top 81%, 1,247 students, 30% FRL); Madison Senior High School (math 37% / reading 57%, grade D-, #55 of 169 statewide, top 34%, 1,278 students, 21% FRL) — zoned schools at 31% FRL track the district average.
• Watch-outs: HOA is 33% of rent.
• Market conditions: Rents rising (+2.6%/yr); 386 active listings in the ZIP; 274 units permitted in Madison County in 2024 (80 in 5+ unit buildings).
• Madison County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts since 22y ago; this cycle's ask has dropped $15k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• This rent runs 32% of the median local income ($58k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 68 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
• Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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 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?