410 Medary Ave S

Brookings, SD 57006

$49,990B

2 bd · 1.0 ba · 784 sqft · Built 1989 · Other · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,276/mo
• Mortgage (P&I): −$262
• Tax + insurance: −$83
• HOA: −$0
• Vac / Maint / Mgmt: −$268
• Net cashflow: $662/mo
• Annual: $7,947/yr
• Cap rate: 22.19%
• Cash-on-cash: 56.78%
• DSCR: 3.53
• 1% rule: 2.55%
• Cash to close: $13,997

Investor read

• This is a 2-bed/1.0-bath other listed at $50k. Condition is rated fair.
• At list price, monthly cash flow is $662 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $50k).
• It's been on market 38 days — a 3% lower offer ($48k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $48k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $346 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#16 in SD, #2,914 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment C-, amenities D+, commute F.
• Brookings School District 05-1 (town): math 41% / reading 51% proficiency, ranked #40 of 59 in SD (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Medary Elementary - 05 (math 57% / reading 47%, grade C-, #98 of 253 statewide, top 42%, 323 students, 27% FRL); George S. Mickelson Middle School - 02 (math 40% / reading 50%, grade D, #74 of 143 statewide, top 51%, 751 students, 22% FRL); Brookings High School - 01 (math 48% / reading 57%, grade C-, #64 of 151 statewide, top 42%, 1,050 students, 15% FRL) — zoned schools at 21% FRL track the district average.
• Market conditions: Rents rising (+3.2%/yr); 23 active listings in the ZIP; 15 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 224 units permitted in Brookings County in 2024 (25 in 5+ unit buildings).
• Brookings County population projected at +40% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.2% rent growth), your $14k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Landscaping — Needs some landscaping to improve curb appeal