215 Commercial St N

Wessington, SD 57381

$25,000B

2 bd · 1.0 ba · 1,044 sqft · Built 1922 · Other · Active · 45 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $976/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$15
• HOA: −$0
• Vac / Maint / Mgmt: −$205
• Net cashflow: $625/mo
• Annual: $7,497/yr
• Cap rate: 36.28%
• Cash-on-cash: 107.10%
• DSCR: 5.77
• 1% rule: 3.90%
• Cash to close: $7,000

Investor read

• This is a 2-bed/1.0-bath other listed at $25k.
• At list price, monthly cash flow is $625 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($976 rent vs $25k).
• It's been on market 45 days — a 3% lower offer ($24k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $24k (3.0% below list) — sets the bar for market timing.
• In year one you build about $923 of equity ($173 loan paydown + $750 appreciation (3.0% local appreciation)).
• Location reads 60/100 on livability (#244 in SD) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: health & safety C-, crime F, amenities F.
• Wolsey Wessington School District 02-6 (rural): math 30% / reading 35% proficiency, ranked #128 of 148 in SD (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wolsey Wessington Elementary - 02 (math 42% / reading 37%, grade F, #169 of 253 statewide, top 71%, 166 students, 25% FRL); Wolsey Wessington Middle School - 03 (math 52% / reading 42%, grade D+, #70 of 143 statewide, top 50%, 83 students, 40% FRL); Wolsey Wessington High School - 01 (math 50% / reading 50%, grade D, #100 of 151 statewide, top 69%, 110 students, 31% FRL) — zoned schools at 32% FRL track the district average.
• Zoned-school proficiency averages 45% at this address vs 32% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Wolsey Wessington School District 02-6 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1922 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 30 units permitted in Beadle County in 2024 (6 in 5+ unit buildings).
• Beadle County population projected at +39% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• It's been on market 45 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1922 — 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.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.