821 Madison Ave · Albert Lea, MN 56007

$84,900

2 bd · 2.0 ba · 1,552 sqft · SingleFamily public records · 134 Days on market

Built 1898 7,013 sqft lot $55/sqft · 56% below area

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Why this score? — see what drove the B- 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).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.9/10.0
• ARV discount +7.5/15.0
• Livability +3.6/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

Key facts

• Mature peach trees
• New apple trees
• Practical kitchen

Tags

• TWO STORY HOME
• DEDICATED DINING ROOM
• PRACTICAL KITCHEN
• VIBRANT EDIBLE LANDSCAPE
• MATURE PEACH TREES
• NEW APPLE TREES

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $85k.

Deal economics

• At list price, monthly cash flow is $354 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• Recommended offer: $75k (12.0% below list) — sets the bar for market timing.
• Cap rate 11.3% vs local median 4.0% in Albert Lea — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 72/100 on livability (#274 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, employment D+, amenities F.
• Albert Lea Public School District (town): math 30% / reading 40% proficiency, ranked #258 of 301 in MN (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 150 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 16 units permitted in Freeborn County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $587 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Freeborn County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 134 days — a 12% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 8y ago; this cycle's ask has dropped $25k (23%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1898 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $74,712 (12.0% below list)

Questions for the listing agent

1. It's been on market 134 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1898 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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.
6. 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.
7. 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: 1.39% ✓
• Cap rate: 11.29%
• Cash-on-cash: 17.86%
• DSCR: 1.79
• GRM: 6.0

CMA / ARV

• ARV (median comp): $191,000
• List price: $84,900
• Delta: -55.55%
• Verdict: UNDERPRICED
• Comps: 3 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 9.4%
• Equity multiple: 1.37×
• Total profit: $8,792
• Equity at exit: $12,659

10-year hold

• IRR: 18.6%
• Equity multiple: 2.54×
• Total profit: $36,721
• Equity at exit: $7,341

Cash invested: $23,772 (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 56007

• Home prices YoY: -22.3%
• Active inventory: 150
• Price-to-rent: 6.0×

Monthly cashflow live

• Estimated rent: $1,176 medium
• Mortgage (P&I): −$445
• Tax from tax record: −$94 /mo · $1,134/yr
• Insurance: −$35
• HOA: −$0
• Vacancy / Maint / Mgmt: −$247
• Net cashflow: $354

Break-even live

Break-even rent $728

Max offer price $84,900

Occupancy floor 65%

Sensitivity live

Price	-10% $402	-5% $378	+0% $354	+5% $330	+10% $306
Rent	-10% $261	-5% $307	+0% $354	+5% $400	+10% $447
Rate	-1.0pp $397	-0.5pp $375	base $354	+0.5pp $332	+1.0pp $309

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: $21,225
• Closing costs: $2,547
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1307 Saint Joseph Ave Albert Lea, MN	2.0	1.0	1101	$1,050	$0.95	44d	1	0.71mi
1619 W Main St Unit 107 Albert Lea, MN	2.0	1.0	1208	$1,300	$1.08	44d	1	0.86mi
1619 W Main St Unit 116- 2 Loft, 15 bath Albert Lea, MN	2.0	1.5	1366	$1,500	$1.10	44d	1	0.86mi

Listing history 16 events

1. 2026-05-09
   status Pending 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

2. 2026-05-04
   price $84,900 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

3. 2026-04-07
   price $89,499 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

4. 2026-03-09
   price $89,900 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

5. 2026-02-23
   price $94,900 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

6. 2026-02-07
   status Active 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

7. 2025-11-20
   price $99,900 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

8. 2025-11-10
   price $104,900 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

9. 2025-10-26
   listed $109,900 Active 682-char remark

   Show marketing remark (682 chars)

   Escape the ordinary and embrace a life surrounded by natural beauty! This delightful, well-loved two-story home offers a unique retreat for those who value outdoor splendor over garage space. Inside, you'll find a functional and inviting layout with a comfortable living room, a dedicated dining room, a practical kitchen, 1 bedroom and a convenient half bath. It's the perfect space for daily living. Upper Level has 3 cozy bedrooms and a full bathroom, providing a quiet sanctuary for rest and relaxation. The entire yard is a vibrant, edible landscape. Harvest your own fruit from mature peach trees, new apple trees and cultivate your favorite vegetables in established gardens.

10. 2021-09-14
    soldstatus $76,000
11. 2019-04-04
    soldstatus $22,900 Sold 244-char remark

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

12. 2019-04-04
    soldstatus $21,900

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

13. 2019-03-19
    historical Contingent - Inspection 244-char remark

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

14. 2018-12-28
    price $24,900 244-char remark

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

15. 2018-11-14
    price $29,900 244-char remark

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

16. 2018-10-22
    listed $34,900 Active 244-char remark

    Show marketing remark (244 chars)

    Investor / Handyman / Handy Woman special. Has has been vacant for multiple years. House needs, good cleaning, plaster repair, plumbing and cosmetics. Quick close possible. Contract for deed available for purchase price of $39,900 and 25% down.

ⓘ 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: $1,134 · $94/mo
• Projected year-2 tax: $1,134 · $94/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 74% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,111
• − Mortgage interest: −$4,756
• − Property taxes: −$1,134
• − Insurance: −$424
• − Repairs & maintenance: −$1,129
• − Management: −$1,129
• − Depreciation: −$2,470
• Taxable income: $3,069
• Est. tax owed @ 24.0%: −$737
• After-tax cash flow: $3,510/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: Albert Lea Public School District
• NCES district ID: 2702970
• Math proficiency: 30% ▼ -14.00%
• Reading proficiency: 40% ▼ -8.00%
• Median HH income: $42,776
• Composite: 29.62/100
• National rank: #6472
• State rank: #258 of 301 in MN

Livability — Albert Lea

• Score: 72/100
• State rank: #274
• US rank: #5963

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Albert Lea, MN
• County: Freeborn County · 21,377 people
• City population: 21,377
• Metro: Albert Lea, MN
• Population (ZIP): 21,377
• Household income: $68,846
• Rent vs Own: 23.3% rent · 76.7% own
• Severe rent burden: 483.0

Population outlook (Freeborn County) Hauer SSP2

• Today (2025): 29,680 people
• By 2030: 29,038 · -2.2%
• By 2040: 27,650 · -6.8%
• By 2050: 26,387 · -11.1%
• By 2075: 25,224 · -15.0%
• By 2100: 23,842 · -19.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (79%)
• Race & ethnicity: White 79% Hispanic / Latino 14% Two or more races 8% Asian 4% Black 2%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Portuguese 23% Iranian 3% Romanian 2%
• Foreign-born: 4% · Canada, Philippines
• Languages at home: 90% English-only · Spanish 7% Other Asian/Pacific 3%

Political lean MEDSL · Freeborn

• 2024 margin: Strong R (+21.3) · D 38.7% · R 60.0% · Other 1.3%
• 2008→2024 swing: -38.5pp toward R · 2008: 17.1pp · 2024: -21.3pp
• All cycles: 2024: R+21.3 2020: R+16.0 2016: R+17.4 2012: D+14.2 2008: D+17.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -63.40%
• Current HPI: 220.7963
• Rent YoY: —
• Metro: Albert Lea, MN
• 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

+143.3% since first listed

16 events — show timeline

• 2026-05-09 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-04 Price Changed $84,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-07 Price Changed $89,499 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-09 Price Changed $89,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-23 Price Changed $94,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-07 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-20 Price Changed $99,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-10 Price Changed $104,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-10-26 Listed $109,900 NORTHSTARMLS as Distributed by MLS Grid
• 2021-09-14 Sold (Public Records) $76,000 Public Records
• 2019-04-04 Sold (Public Records) $21,900 Public Records
• 2019-04-04 Sold (MLS) $22,900 NORTHSTARMLS as Distributed by MLS Grid
• 2019-03-19 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-28 Price Changed $24,900 NORTHSTARMLS as Distributed by MLS Grid
• 2018-11-14 Price Changed $29,900 NORTHSTARMLS as Distributed by MLS Grid
• 2018-10-22 Listed $34,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+4.2%/yr

Latest (2025): $1,134 · +12.3% YoY. Source: county tax records.