338 3rd St NW

Gwinner, ND 58040

$88,000B

3 bd · 2.0 ba · 1,440 sqft · Built 2015 · SingleFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,179/mo
• Mortgage (P&I): −$461
• Tax + insurance: −$147
• HOA: −$0
• Vac / Maint / Mgmt: −$247
• Net cashflow: $323/mo
• Annual: $3,875/yr
• Cap rate: 10.70%
• Cash-on-cash: 15.72%
• DSCR: 1.70
• 1% rule: 1.34%
• Cash to close: $24,640

Investor read

• This is a 3-bed/2.0-bath single-family listed at $88k. Condition is rated good.
• At list price, monthly cash flow is $323 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $88k).
• It's been on market 21 days — a 2% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (1.5% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($608 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 72/100 on livability (#40 in ND) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, health & safety D+, amenities F.
• North Sargent 3 (rural): math 25% / reading 50% proficiency, ranked #108 of 169 in ND (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 17% free/reduced lunch — higher-income household profile.
• Market conditions: 5 active listings in the ZIP; 1 units permitted in Sargent County in 2024 (0 in 5+ unit buildings).
• Sargent County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 10, 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

• 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.