660 11th St

Lafayette, MN 56054

$90,000B+

3 bd · 2.0 ba · 1,792 sqft · Built 1996 · SingleFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,268/mo
• Mortgage (P&I): −$472
• Tax + insurance: −$79
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $451/mo
• Annual: $5,407/yr
• Cap rate: 12.30%
• Cash-on-cash: 21.46%
• DSCR: 1.95
• 1% rule: 1.41%
• Cash to close: $25,200

Investor read

• This is a 3-bed/2.0-bath single-family listed at $90k.
• At list price, monthly cash flow is $451 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $90k).
• It's been on market 18 days — a 2% lower offer ($89k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $89k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($622 loan paydown + $4k appreciation (4.7% local appreciation)).
• Location reads 64/100 on livability (#570 in MN) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• New Ulm Public School District (town): math 51% / reading 51% proficiency, ranked #104 of 301 in MN (top 35%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Jefferson Elementary (math 47% / reading 39%, grade F, #574 of 857 statewide, top 67%, 619 students, 40% FRL); Washington Learning Center (188 students, 47% FRL); New Ulm High School (math 67% / reading 67%, grade B, #19 of 471 statewide, top 4%, 706 students, 29% FRL) — zoned schools average 39% FRL vs 21% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 6 active listings in the ZIP; 109 units permitted in Nicollet County in 2024 (47 in 5+ unit buildings).
• At projected returns (4.7% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.