309 E 2nd Ave is a fantastic investment property located in Lennox, SD, and only 20 minutes away from Sioux Falls, SD. The property is located near the Lennox School District in a great neighborhood. Lennox is small town just off of Interstate I29. The town is not right off the Interstate, but Lennox has the freedom of having a small town feel, with a large city just nearby.
While many first time investors are weary of their first investment property, this is one you do not want to pass up. This multi-family property can be a great way for any investor to begin, as well as an exceptional addition to any veteran investors rental portfolio. A great option for a beginning investor would be to rent out the bottom unit (1 bed/1 bath) and rent out the top unit (2 bed/1 bath). This link to an article written by Holly Johnson from The Simple Dollar can help with first time investors looking to buy a multi-family investment property – https://www.thesimpledollar.com/should-you-buy-a-duplex-rent-out-one-unit-and-live-in-the-other/
While South Dakota is rather limited on high performing rental properties, this multi family property brings in $1350 per month, and has an astounding cap rate (NOI/Purchase Price) of 11.6%. South Dakota averages around a 6-8% cap on investment properties, which deems this to be a phenomenal exception to the South Dakota average. This is a great investment property for any veteran investor looking for a high performing multi-family property to add to their rental portfolio.
Property Features
- 2 Bedrooms/1 Bathroom on the top unit – $750/month in rent
- 1 Bedroom/1 Bathroom on the bottom unit – $650/month in rent
- The two combined bring in a total of $1,350/month in rent
- Net Operating Income (NOI) is $10,400.
- The Cap Rate for this property is 11.6%
If you would like to view the property, or have any more questions, feel free to reach out to us by:
- Email – MStoneCapital@gmail.com
- Phone or text – (605)655-3286