8777 Merritt Pl · Mountain Iron, MN 55768

$79,900

3 bd · 1.0 ba · 864 sqft · SingleFamily public records · 12 Days on market

Built 1952 6,970 sqft lot

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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 +8.6/10.0
• ARV discount +7.5/15.0
• Appreciation +5.9/10.0
• Schools +3.7/10.0
• Livability +3.6/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

Mt Iron - South Grove Addition: 3BR/1BA Rambler (Handyman Special) with a couple newer vinyl windows, newer gas FA furnace, new roof, all appliances included, and an oversized 2 stall garage. Fenced back yard with patio area. Great location.

Key facts

• Fenced back yard
• Newer vinyl windows
• Patio area

Tags

• NEWER VINYL WINDOWS
• NEWER GAS FA FURNACE
• NEW ROOF
• FENCED BACK YARD
• PATIO AREA
• GREAT LOCATION

Property features AI

Exterior

• Parking: Detached garage with garage door opener; 2 garage spaces
• Utilities: Public water; Public sewer
• Home design: Single-family residence; One-story
• Construction: Frame construction; Asphalt shingle roof; Built on a block foundation
• Exterior features: Patio; Chain-link fencing; Lot approximately 117 x 60 (0.16 acres)

Interior

• Kitchen: Electric range; Refrigerator; Dishwasher not listed
• Heating & cooling: Forced-air heating (natural gas)
• Interior features: Full block basement; Electric water heater
• Laundry & utility: Washer and dryer included; Electric dryer hookup

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $80k.

Deal economics

• At list price, monthly cash flow is $388 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $80k).

Location & tenants

• Location reads 72/100 on livability (#266 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Mountain Iron-Buhl School District (town): math 36% / reading 51% proficiency, ranked #196 of 301 in MN (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 16 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).

Forward outlook

• In year one you build about $2k of equity ($552 loan paydown + $1k appreciation (1.7% local appreciation)).
• At projected returns (1.7% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $79,900

Questions for the listing agent

1. Built in 1952 — 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: 1.36% ✓
• Cap rate: 12.12%
• Cash-on-cash: 20.83%
• DSCR: 1.93
• GRM: 6.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

1.72% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 24.4%
• Equity multiple: 2.30×
• Total profit: $29,053
• Equity at exit: $30,321

10-year hold

• IRR: 26.5%
• Equity multiple: 4.38×
• Total profit: $75,648
• Equity at exit: $42,763

Cash invested: $22,372 (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 55768

• Home prices YoY: 0.8%
• Active inventory: 16
• Price-to-rent: 6.1×

Monthly cashflow live

• Estimated rent: $1,090 medium
• Mortgage (P&I): −$419
• Tax from tax record: −$20 /mo · $246/yr
• Insurance: −$33
• HOA: −$0
• Vacancy / Maint / Mgmt: −$229
• Net cashflow: $388

Break-even live

Break-even rent $598

Max offer price $79,900

Occupancy floor 59%

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: $19,975
• Closing costs: $2,397
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-06-01
   status $79,900 Pending 12 DOM
2. 2026-05-31
   days on market $79,900 Active 12 DOM
3. 2026-05-30
   days on market $79,900 Active 11 DOM
4. 2026-05-19
   listed $79,900 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: $246 · $20/mo
• Projected year-2 tax: $570 · $48/mo
• Expected delta: +$324/yr (+$27/mo · 131.9%)

ⓘ 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 ≥92°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,080
• − Mortgage interest: −$4,476
• − Property taxes: −$246
• − Insurance: −$400
• − Repairs & maintenance: −$1,046
• − Management: −$1,046
• − Depreciation: −$2,324
• Taxable income: $3,541
• Est. tax owed @ 24.0%: −$850
• After-tax cash flow: $3,810/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: Mountain Iron-Buhl School District
• NCES district ID: 2700001
• Math proficiency: 36% ▼ -10.00%
• Reading proficiency: 51% ▼ -12.00%
• Median HH income: $46,501
• Composite: 37.01/100
• National rank: #4519
• State rank: #196 of 301 in MN

Livability — Mountain Iron

• Score: 72/100
• State rank: #266
• US rank: #5807

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mountain Iron, MN
• City population: 2,791
• Population (ZIP): 2,791

Population outlook (St. Louis County) Hauer SSP2

• Today (2025): 202,411 people
• By 2030: 203,234 · +0.4%
• By 2040: 202,520 · +0.1%
• By 2050: 200,853 · -0.8%
• By 2075: 200,943 · -0.7%
• By 2100: 192,058 · -5.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 3% Native American 1%
• Common ancestry: Portuguese 9% Italian 3% Romanian 2%
• Foreign-born: 0%

Political lean MEDSL · St. Louis

• 2024 margin: D (+13.7) · D 55.9% · R 42.2% · Other 1.8%
• 2008→2024 swing: -18.8pp toward R · 2008: 32.5pp · 2024: 13.7pp
• All cycles: 2024: D+13.7 2020: D+15.6 2016: D+11.8 2012: D+29.6 2008: D+32.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 1.72%
• Current HPI: 223.4904
• 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

• 2026-05-19 Listed $79,900 RAOR

Property tax history

-2.6%/yr

Latest (2025): $246 · -40.9% YoY. Source: county tax records.