32692 US 71 · Red Eye, MN 56464

$110,000

1 bd · 1.0 ba · 1,460 sqft · SingleFamily public records · 3 Days on market

Built 1958 0.61 ac lot

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Why this score? — see what drove the C 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 +16.9/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• DSCR +5.2/10.0
• Schools +4.8/10.0
• 1% rule +3.9/10.0
• Rent growth +2.5/5.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

One bedroom, one bath home for sale on more than a half-acre tucked off the road between Menahga and Sebeka. Conveniently located on US Hwy 71, this two-level home offers a detached garage, main living/kitchen area, lower office and family room with a wood burning fireplace. Current antique business is closing its doors. Please inquire on any interest in remaining inventory or it can be left with home purchase. Wall oven in kitchen and wall heater in bathroom doesn't work. Create a new business at this location or turn into your private home dwelling!

Key facts

• 0.61 acre lot
• 2 garage spots
• Built 1958

Property features AI

Finance

• Financial info: Other annual assessment: $70; Annual tax (2026): $902 (taxes with assessments: $972)

Exterior

• Parking: Detached 2-car garage (24 x 24)
• Utilities: Water from sand point; Holding tank / private sewer (septic system compliant); Electric service with circuit breakers (Todd-Wadena Electric Co-op); Fuel: Electric and wood
• Home design: Residential property; One level; Main entry on main level
• Construction: Block construction; Asphalt and metal roof over 8 years old; Block and poured concrete foundation; Foundation dimensions approximately 30 x 32
• Exterior features: No fencing; Road frontage on a highway; Publicly maintained road access; Lot approximately 0.61 acres (about 150 x 180)

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: 1 bedroom on main level
• Bathrooms: Main floor full bathroom
• Heating & cooling: Baseboard heating; Wood-burning fireplace; No central air
• Interior features: Den on lower level; Family room on lower level; Finished basement (partial); Circulating fireplace in the family room; Kitchen window
• Laundry & utility: Basement utility area

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $110k.

Deal economics

• At list price, monthly cash flow is $72 ($860/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $98k (10.8% below list).
• Recommended offer: $98k (10.8% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Menahga Public School District (rural): math 52% / reading 57% proficiency, ranked #246 of 467 in MN (top 53%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 52 active listings in the ZIP; 52 units permitted in Wadena County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $12k of equity ($761 loan paydown + $11k appreciation (10.0% local appreciation)).
• Wadena County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 12y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $78k; 41% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $98,149 (10.8% below list)

Questions for the listing agent

1. Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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: 0.89% ✗
• Cap rate: 7.08%
• Cash-on-cash: 2.79%
• DSCR: 1.12
• GRM: 9.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 26.3%
• Equity multiple: 3.09×
• Total profit: $64,455
• Equity at exit: $99,097

10-year hold

• IRR: 23.0%
• Equity multiple: 7.04×
• Total profit: $186,179
• Equity at exit: $213,706

Cash invested: $30,800 (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 56464

• Home prices YoY: 18.3%
• Active inventory: 52
• Price-to-rent: 9.3×

Monthly cashflow live

• Estimated rent: $981 medium
• Mortgage (P&I): −$577
• Tax from tax record: −$81 /mo · $972/yr
• Insurance: −$46
• HOA: −$0
• Vacancy / Maint / Mgmt: −$206
• Net cashflow: $72

Break-even live

Break-even rent $891

Max offer price $110,000

Occupancy floor 88%

Sensitivity live

Price	-10% $134	-5% $103	+0% $72	+5% $41	+10% $9
Rent	-10% $-6	-5% $33	+0% $72	+5% $110	+10% $149
Rate	-1.0pp $127	-0.5pp $100	base $72	+0.5pp $43	+1.0pp $14

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: $27,500
• Closing costs: $3,300
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-06-18
   days on market $110,000 Active 3 DOM
2. 2026-06-17
   days on market $110,000 Active 2 DOM
3. 2026-06-16
   remarks 557-char remark
4. 2026-06-16
   listed $110,000 Active 1 DOM

ⓘ 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: $972 · $81/mo
• Projected year-2 tax: $1,102 · $92/mo
• Expected delta: +$130/yr (+$11/mo · 13.4%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,778
• − Mortgage interest: −$6,162
• − Property taxes: −$972
• − Insurance: −$550
• − Repairs & maintenance: −$942
• − Management: −$942
• − Depreciation: −$3,200
• Taxable loss: −$990
• Est. tax savings @ 24.0%: +$238
• After-tax cash flow: $1,098/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: Menahga Public School District
• NCES district ID: 2720580
• Math proficiency: 52% ▼ -15.00%
• Reading proficiency: 57% ▼ -4.00%
• Median HH income: $41,685
• Composite: 47.55/100
• National rank: #4963
• State rank: #246 of 467 in MN

Livability — Red Eye

No livability data for this city. (Only ~50 U.S. cities are tracked.)

Census & demographics

• Population (ZIP): 5,091

Population outlook (Wadena County) Hauer SSP2

• Today (2025): 13,856 people
• By 2030: 13,689 · -1.2%
• By 2040: 13,382 · -3.4%
• By 2050: 13,062 · -5.7%
• By 2075: 12,185 · -12.1%
• By 2100: 10,297 · -25.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (94%)
• Race & ethnicity: White 94% Two or more races 4% Hispanic / Latino 2%
• Common ancestry: Portuguese 14% Romanian 2% Iranian 2%
• Foreign-born: 1% · Canada
• Languages at home: 97% English-only · Spanish 1% German/W. Germanic 1%

Political lean MEDSL · Wadena

• 2024 margin: Solid R (+51.5) · D 23.6% · R 75.1% · Other 1.2%
• 2008→2024 swing: -34.1pp toward R · 2008: -17.4pp · 2024: -51.5pp
• All cycles: 2024: R+51.5 2020: R+45.5 2016: R+45.7 2012: R+24.4 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 50.85%
• Current HPI: 328.0482
• 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

+307.4% since first listed

5 events — show timeline

• 2026-06-15 Listed $110,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-07-06 Sold (Public Records) $78,000 Public Records
• 2014-10-24 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2014-02-26 Listed $85,000 NORTHSTARMLS as Distributed by MLS Grid
• 1997-06-01 Sold (Public Records) $27,000 Public Records

Property tax history

+1.8%/yr

Latest (2026): $972 · -0.8% YoY. Source: county tax records.