240 W 7th St

Gibbon, MN 55335

$139,900D

4 bd · 3.0 ba · 2,364 sqft · Built 1959 · SingleFamily · Active · 60 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,363/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$472
• HOA: −$0
• Vac / Maint / Mgmt: −$286
• Net cashflow: $-128/mo
• Annual: $-1,541/yr
• Cap rate: 5.19%
• Cash-on-cash: -3.93%
• DSCR: 0.82
• 1% rule: 0.97%
• Cash to close: $39,172

Investor read

• This is a 4-bed/3.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $-128 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $117k (16.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $136k (2.6% below list).
• It's been on market 60 days — a 3% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (16.2% below list) — sets the bar for cash-flow.
• In year one you build about $8k of equity ($967 loan paydown + $7k appreciation (5.3% local appreciation)).
• Location reads 66/100 on livability (#503 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety D+, amenities F.
• G.F.W. (rural): math 40% / reading 48% proficiency, ranked #186 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Gfw Elementary School (math 52% / reading 47%, grade D, #423 of 857 statewide, top 55%, 199 students, 63% FRL); Gfw Middle School (187 students, 59% FRL); Gfw High School (math 32% / reading 47%, grade F, #246 of 471 statewide, top 59%, 214 students, 43% FRL) — zoned schools average 55% FRL vs 32% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: property tax is 3.5% of price; built in 1959 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 27 units permitted in Sibley County in 2024 (0 in 5+ unit buildings).
• Sibley County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 4y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 60 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1959 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.