342 W 3rd St

Winner, SD 57580

$55,000B-

4 bd · 2.0 ba · 2,296 sqft · Built 1925 · Other · Active · 110 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,414/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$132
• HOA: −$0
• Vac / Maint / Mgmt: −$297
• Net cashflow: $696/mo
• Annual: $8,357/yr
• Cap rate: 21.49%
• Cash-on-cash: 54.27%
• DSCR: 3.41
• 1% rule: 2.57%
• Cash to close: $15,400

Investor read

• This is a 4-bed/2.0-bath other listed at $55k.
• At list price, monthly cash flow is $696 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $55k).
• It's been on market 110 days — a 9% lower offer ($50k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $50k (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $380 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#49 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: employment D+, amenities F, commute F.
• Winner School District 59-2 (town): math 35% / reading 50% proficiency, ranked #48 of 59 in SD (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Winner Elementary - 04 (math 42% / reading 52%, grade D-, #134 of 253 statewide, top 55%, 444 students, 42% FRL); Winner Middle School - 02 (math 32% / reading 47%, grade F, #102 of 143 statewide, top 76%, 160 students, 41% FRL); Winner High School - 01 (math 34% / reading 64%, grade D, #100 of 151 statewide, top 69%, 210 students, 34% FRL) — zoned schools at 39% FRL track the district average.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 17 active listings in the ZIP; 2 units permitted in Tripp County in 2024 (0 in 5+ unit buildings).
• Tripp County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~3 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 110 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Built in 1925 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.