326 2nd Ave E · Federal Dam, MN 56641

$209,000

5 bd · 3.0 ba · 1,088 sqft · SingleFamily public records · 20 Days on market

Built 1985 0.60 ac lot

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Why this score? — see what drove the D- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Appreciation +9.3/10.0
• ARV discount +7.5/15.0
• Cash flow +6.5/30.0
• Livability +3.0/5.0
• Schools +2.8/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +0.8/10.0
• 1% rule +0.5/10.0

Listing remarks

This solid 5 bed 3 bath home lies in the beautiful Chippewa National Forest and just blocks from Federal Dam Recreation Area. It sits on 1/2 acre and comes with a 1320sf pole building and a metal shipping container for extra storage. This home has received a new basement and extensive remodeling. The great room is so comfy you may not want to leave! The large deck is great for entertaining and the home features a main floor primary bedroom and main floor laundry. The loft holds 2 bedrooms and a 1/2 bath. The basement was rebuilt but has not been fully finished. It holds 2 more bedrooms, living space, a 3/4 bath area and more storage. The outdoor space is wonderful too ~ complete with a fenc

Key facts

• Large deck
• New basement
• 1320sf pole building

Tags

• 1320SF POLE BUILDING
• METAL SHIPPING CONTAINER
• NEW BASEMENT
• EXTENSIVE REMODELING
• LARGE DECK
• MAIN FLOOR PRIMARY BEDROOM

Property features AI

Exterior

• Parking: Gravel parking
• Utilities: Well water; City sewer (connected); Electric with circuit breakers (Lake Country Power); Pellet fuel
• Home design: Residential property; One and one-half levels; Entry level main floor
• Construction: Frame construction; Asphalt roof (over 8 years old); Slab and wood foundation; Foundation dimensions approximately 34x32
• Exterior features: Composite decking and deck; Vinyl exterior; Partial chain link fence; Pole building on property; City paved street frontage (public maintained road)

Interior

• Kitchen: Dishwasher; Microwave; Range; Refrigerator
• Bedrooms: 5 bedrooms
• Bathrooms: Main floor full bath; Upper level half bath; Basement three-quarter bath
• Heating & cooling: Heating: Other; No central air
• Interior features: Dishwasher; Dryer; Electric water heater; Microwave; Range; Refrigerator; Washer; Full, partially finished wood basement
• Laundry & utility: Main level laundry; Washer and dryer included

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath single-family listed at $209k.

Deal economics

• At list price, monthly cash flow is $-354 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (29.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $114k (45.3% below list).
• Recommended offer: $114k (45.3% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 59/100 on livability (#795 in MN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: health & safety C-, crime D+, employment D+.
• Northland Community Schools (rural): math 25% / reading 35% proficiency, ranked #395 of 467 in MN (top 85%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 9 active listings in the ZIP; 285 units permitted in Cass County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $19k of equity ($1k loan paydown + $18k appreciation (8.6% local appreciation)).
• Cass County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 2, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 20 days — a 2% lower offer ($206k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $114,305 (45.3% below list)

Questions for the listing agent

1. 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?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. Crime grade is D 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?
5. 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?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 0.55% ✗
• Cap rate: 4.26%
• Cash-on-cash: -7.25%
• DSCR: 0.68
• GRM: 15.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

8.62% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 16.0%
• Equity multiple: 2.23×
• Total profit: $71,877
• Equity at exit: $167,729

10-year hold

• IRR: 15.4%
• Equity multiple: 4.86×
• Total profit: $225,753
• Equity at exit: $341,857

Cash invested: $58,520 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 46 Balanced
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City: — inherits STATE

2024 reforms strengthened tenant protections; ramsey/hennepin courts paced moderate to slow.

Methodology + full state rankings →

ZIP-level market 56641

• Home prices YoY: 3.2%
• Active inventory: 9
• Price-to-rent: 15.2×

Monthly cashflow live

• Estimated rent: $1,143 medium
• Mortgage (P&I): −$1,096
• Tax from tax record: −$74 /mo · $884/yr
• Insurance: −$87
• HOA: −$0
• Vacancy / Maint / Mgmt: −$240
• Net cashflow: $-354

Break-even live

Break-even rent $1,591

Max offer price $146,507

Occupancy floor —

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $52,250
• Closing costs: $6,270
• Reserves months: —
• Total cash needed: —

Listing history 15 events

1. 2026-06-18
   days on market $209,000 Active 20 DOM
2. 2026-06-17
   days on market $209,000 Active 19 DOM
3. 2026-06-16
   days on market $209,000 Active 18 DOM
4. 2026-06-15
   days on market $209,000 Active 17 DOM
5. 2026-06-13
   days on market $209,000 Active 15 DOM
6. 2026-06-12
   days on market $209,000 Active 14 DOM
7. 2026-06-09
   days on market $209,000 Active 11 DOM
8. 2026-06-08
   days on market $209,000 Active 10 DOM
9. 2026-06-07
   days on market $209,000 Active 9 DOM
10. 2026-06-05
    days on market $209,000 Active 7 DOM
11. 2026-06-04
    days on market $209,000 Active 5 DOM
12. 2026-06-02
    days on market $209,000 Active 4 DOM
13. 2026-06-01
    days on market $209,000 Active 3 DOM
14. 2026-05-31
    days on market $209,000 Active 2 DOM
15. 2026-05-29
    listed $209,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MN · Partial reset (capped growth)

• Current annual tax: $884 · $74/mo
• Projected year-2 tax: $1,612 · $134/mo
• Expected delta: +$728/yr (+$61/mo · 82.4%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,717
• − Mortgage interest: −$11,707
• − Property taxes: −$884
• − Insurance: −$1,045
• − Repairs & maintenance: −$1,097
• − Management: −$1,097
• − Depreciation: −$6,080
• Taxable loss: −$8,194
• Est. tax savings @ 24.0%: +$1,967
• After-tax cash flow: $-2,278/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Northland Community Schools
• NCES district ID: 2730870
• Math proficiency: 25% ▼ -5.00%
• Reading proficiency: 35% ▼ -5.00%
• Median HH income: $40,741
• Composite: 28.13/100
• National rank: #12208
• State rank: #395 of 467 in MN

Livability — Federal Dam

• Score: 59/100
• State rank: #795
• US rank: #20081

Category grades

Amenities F Commute F Cost of living A+ Crime D+ Employment D+ Housing F Health & safety C- User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Federal Dam, MN
• Population (ZIP): 359

Population outlook (Cass County) Hauer SSP2

• Today (2025): 27,371 people
• By 2030: 26,311 · -3.9%
• By 2040: 23,945 · -12.5%
• By 2050: 21,889 · -20.0%
• By 2075: 18,435 · -32.6%
• By 2100: 14,478 · -47.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.82)
• Race & ethnicity: White 42% Native American 34% Two or more races 22% Asian 2%
• Common ancestry: Romanian 11% Portuguese 4% Lithuanian 3%
• Foreign-born: 4% · Canada
• Languages at home: 92% English-only · Other Indo-European 1% Chinese 1% Other Asian/Pacific 1%

Political lean MEDSL · Cass

• 2024 margin: Solid R (+33.4) · D 32.6% · R 66.0% · Other 1.3%
• 2008→2024 swing: -24.9pp toward R · 2008: -8.5pp · 2024: -33.4pp
• All cycles: 2024: R+33.4 2020: R+28.9 2016: R+31.7 2012: R+13.1 2008: R+8.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 8.62%
• Current HPI: 280.7636
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.41%
• F500 in state: 34

Industry mix (Fortune 500 HQ in MN)

Industry	F500 HQs	Revenue
▸Healthcare	2	$407B
▸Retail	2	$150B
▸Consumer Goods	2	$32B
▸Industrial Machinery	2	$6B
▸Agriculture	1	$40B
▸Healthcare / Medical Devices	1	$32B

Price history

1 event — show timeline

• 2026-05-29 Listed $209,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+9.1%/yr

Latest (2025): $884 · +25.2% YoY. Source: county tax records.