3468 Knightsbridge Trl N

Lake Elmo, MN 55042

$577,795D-

4 bd · 3.0 ba · 2,344 sqft · Built 2025 · Other · Active · 96 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,000/mo
• Mortgage (P&I): −$3,030
• Tax + insurance: −$963
• HOA: −$96
• Vac / Maint / Mgmt: −$840
• Net cashflow: $-929/mo
• Annual: $-11,148/yr
• Cap rate: 4.36%
• Cash-on-cash: -6.89%
• DSCR: 0.69
• 1% rule: 0.69%
• Cash to close: $161,783

Investor read

• This is a 4-bed/3.0-bath other listed at $578k.
• At list price, monthly cash flow is $-929 ($-11k/yr) — negative.
• To cash-flow at today's rent, offer at most $443k (23.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $400k (30.8% below list).
• It's been on market 96 days — a 9% lower offer ($526k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $400k (30.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#271 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F, health & safety F.
• Stillwater Area Public School District (suburban): math 53% / reading 56% proficiency, ranked #54 of 301 in MN (top 18%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 12% free/reduced lunch — higher-income household profile.
• Market conditions: 135 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,405 units permitted in Washington County in 2024 (121 in 5+ unit buildings).
• Washington County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts 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 $486k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 4.4% vs local median 2.7% in Lake Elmo — 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.

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 96 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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.