42357 439th Ave · Perham, MN 56573

$286,000

4 bd · 2.0 ba · 864 sqft · SingleFamily public records · 12 Days on market

Built 1981 0.61 ac lot

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Why this score? — see what drove the F 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 +8.8/30.0
• ARV discount +7.5/15.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +2.4/10.0
• 1% rule +1.7/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Affordable Perham home- 3Bdrm/2Bath, New SS Appliances, Solid Oak cabinets. Newer roof, siding, central air, natural gas very energy efficient home! Oversized 2 stall garage, great lot in quiet neighborhood.

Key facts

• Large deck
• Walk-out deck
• 0.61 acre lot

Tags

• WALK-OUT DECK
• LARGE DECK
• ATTACHED TWO-STALL GARAGE

Property features AI

Exterior

• Parking: Attached 2-car garage
• Utilities: Private well with 4-inch submersible pump; Septic system with tank and drainage field (not compliant); 200+ amp electric service; Natural gas service; Electric serviced by Lake Region Electric Co-op
• Home design: Residential split-entry (bi-level) home; Entry level: Main; Above- and below-grade finished living areas
• Construction: Frame construction; Block foundation; Asphalt shingle roof (older than 8 years)
• Exterior features: Vinyl siding; Deck; Medium tree coverage on the lot; Publicly maintained township road frontage

Interior

• Kitchen: Main-level kitchen
• Bedrooms: Four bedrooms (main level and lower level bedrooms); Bedroom locations include main level and lower level
• Bathrooms: One full bathroom; One three-quarter bathroom (main level 3/4 bath)
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished full basement with egress windows; Informal dining area and combined living/dining space; Deck
• Laundry & utility: Lower-level laundry room

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $286k.

Deal economics

• At list price, monthly cash flow is $-234 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $245k (14.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $192k (32.9% below list).
• Recommended offer: $192k (32.9% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 93 active listings in the ZIP; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• 3 sale attempts since 19y 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.

Recommended offer $192,031 (32.9% below list)

Questions for the listing agent

1. 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?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
4. 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?
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: 0.67% ✗
• Cap rate: 5.31%
• Cash-on-cash: -3.50%
• DSCR: 0.84
• GRM: 12.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -22.2%
• Equity multiple: 0.23×
• Total profit: $-61,332
• Equity at exit: $42,644

10-year hold

• IRR: -16.4%
• Equity multiple: 0.09×
• Total profit: $-73,012
• Equity at exit: $24,728

Cash invested: $80,080 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 93
• Price-to-rent: 12.4×

Monthly cashflow live

• Estimated rent: $1,920 medium
• Mortgage (P&I): −$1,500
• Tax from tax record: −$132 /mo · $1,580/yr
• Insurance: −$119
• HOA: −$0
• Vacancy / Maint / Mgmt: −$403
• Net cashflow: $-234

Break-even live

Break-even rent $2,216

Max offer price $244,733

Occupancy floor —

Sensitivity live

Price	-10% $-72	-5% $-153	+0% $-234	+5% $-315	+10% $-396
Rent	-10% $-385	-5% $-309	+0% $-234	+5% $-158	+10% $-82
Rate	-1.0pp $-90	-0.5pp $-161	base $-234	+0.5pp $-308	+1.0pp $-383

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: $71,500
• Closing costs: $8,580
• Reserves months: —
• Total cash needed: —

Listing history 9 events

1. 2026-06-21
   days on market $286,000 Active 12 DOM
2. 2026-06-18
   days on market $286,000 Active 10 DOM
3. 2026-06-17
   days on market $286,000 Active 9 DOM
4. 2026-06-16
   days on market $286,000 Active 8 DOM
5. 2026-06-15
   days on market $286,000 Active 7 DOM
6. 2026-06-13
   days on market $286,000 Active 5 DOM
7. 2026-06-12
   days on market $286,000 Active 4 DOM
8. 2026-06-09
   remarks 693-char remark
9. 2026-06-09
   listed $286,000 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: $1,580 · $132/mo
• Projected year-2 tax: $2,392 · $199/mo
• Expected delta: +$812/yr (+$68/mo · 51.4%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥97°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $23,044
• − Mortgage interest: −$16,020
• − Property taxes: −$1,580
• − Insurance: −$1,430
• − Repairs & maintenance: −$1,843
• − Management: −$1,843
• − Depreciation: −$8,320
• Taxable loss: −$7,994
• Est. tax savings @ 24.0%: +$1,918
• After-tax cash flow: $-885/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: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 6,868

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.48%
• Current HPI: 225.7071
• 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

+140.3% since first listed

8 events — show timeline

• 2026-06-08 Listed $286,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-05-27 Sold (Public Records) $250,000 Public Records
• 2022-05-23 Sold (MLS) $250,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-03-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2022-03-26 Listed $249,900 NORTHSTARMLS as Distributed by MLS Grid
• 2008-01-09 Sold (Public Records) $113,000 Public Records
• 2008-01-04 Sold (MLS) $113,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-02-02 Listed $119,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.4%/yr

Latest (2025): $1,580 · -7.7% YoY. Source: county tax records.