206 Chicago St · Lakefield, MN 56150

$40,000

3 bd · 2.0 ba · 1,528 sqft · Other public records · 181 Days on market

Built 1920 10,497 sqft lot $26/sqft · 53% below area

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Appreciation +5.1/10.0
• Schools +4.0/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Looking for a project or investment property. Look no further. This 3 bedroom 2 bath home is ready for some elbow grease! Come take a look, this property is priced to sell.

Key facts

• 0.24 acre lot
• Garage
• Built 1920

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath other listed at $40k.

Deal economics

• At list price, monthly cash flow is $689 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 76/100 on livability (#159 in MN, #3,445 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Jackson County Central School District (town): math 46% / reading 48% proficiency, ranked #160 of 301 in MN (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 13 active listings in the ZIP; 4 units permitted in Jackson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $375 of equity ($277 loan paydown + $98 appreciation (0.2% local appreciation)).
• Jackson County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (0.2% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 181 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $35,200 (12.0% below list)

Questions for the listing agent

1. It's been on market 181 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 3.07% ✓
• Cap rate: 26.97%
• Cash-on-cash: 73.85%
• DSCR: 4.29
• GRM: 2.7

CMA / ARV

• ARV (median comp): $87,039
• List price: $40,000
• Delta: -54.04%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

0.25% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 76.2%
• Equity multiple: 4.86×
• Total profit: $43,218
• Equity at exit: $12,108

10-year hold

• IRR: 77.7%
• Equity multiple: 9.93×
• Total profit: $100,032
• Equity at exit: $14,954

Cash invested: $11,200 (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 56150

• Home prices YoY: 0.1%
• Active inventory: 13
• Price-to-rent: 2.7×

Monthly cashflow live

• Estimated rent: $1,230 medium
• Mortgage (P&I): −$210
• Tax from tax record: −$56 /mo · $668/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$258
• Net cashflow: $689

Break-even live

Break-even rent $357

Max offer price $40,000

Occupancy floor 39%

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Listing history 7 events

1. 2026-04-23
   price $40,000 175-char remark

   Show marketing remark (175 chars)

   Looking for a project or investment property. Look no further. This 3 bedroom 2 bath home is ready for some elbow grease! Come take a look, this property is priced to sell.

2. 2026-03-13
   price $45,000 175-char remark

   Show marketing remark (175 chars)

   Looking for a project or investment property. Look no further. This 3 bedroom 2 bath home is ready for some elbow grease! Come take a look, this property is priced to sell.

3. 2026-01-09
   price $49,900 175-char remark

   Show marketing remark (175 chars)

   Looking for a project or investment property. Look no further. This 3 bedroom 2 bath home is ready for some elbow grease! Come take a look, this property is priced to sell.

4. 2025-11-23
   listed $60,000 Active 175-char remark

   Show marketing remark (175 chars)

   Looking for a project or investment property. Look no further. This 3 bedroom 2 bath home is ready for some elbow grease! Come take a look, this property is priced to sell.

5. 2022-07-20
   soldstatus $38,000
6. 1999-12-15
   soldstatus $25,000
7. 1998-09-17
   soldstatus $11,950

ⓘ 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: $668 · $56/mo
• Projected year-2 tax: $668 · $56/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,756
• − Mortgage interest: −$2,241
• − Property taxes: −$668
• − Insurance: −$200
• − Repairs & maintenance: −$1,180
• − Management: −$1,180
• − Depreciation: −$1,164
• Taxable income: $8,122
• Est. tax owed @ 24.0%: −$1,949
• After-tax cash flow: $6,322/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: Jackson County Central School District
• NCES district ID: 2700231
• Math proficiency: 46% ▼ -9.00%
• Reading proficiency: 48% ▼ -7.00%
• Median HH income: $48,654
• Composite: 40.17/100
• National rank: #3790
• State rank: #160 of 301 in MN

Livability — Lakefield

• Score: 76/100
• State rank: #159
• US rank: #3445

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lakefield, MN
• Population (ZIP): 2,863

Population outlook (Jackson County) Hauer SSP2

• Today (2025): 9,757 people
• By 2030: 9,560 · -2.0%
• By 2040: 9,130 · -6.4%
• By 2050: 8,699 · -10.8%
• By 2075: 8,113 · -16.8%
• By 2100: 7,471 · -23.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Hispanic / Latino 4% Two or more races 3%
• Common ancestry: Portuguese 12% Iranian 3% Romanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 95% English-only · Spanish 3% Other Asian/Pacific 2%

Political lean MEDSL · Jackson

• 2024 margin: Solid R (+42.1) · D 28.1% · R 70.2% · Other 1.7%
• 2008→2024 swing: -37.8pp toward R · 2008: -4.3pp · 2024: -42.1pp
• All cycles: 2024: R+42.1 2020: R+37.9 2016: R+38.8 2012: R+14.3 2008: R+4.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.25%
• Current HPI: 247.4024
• 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

+234.7% since first listed

7 events — show timeline

• 2026-04-23 Price Changed $40,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-13 Price Changed $45,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-09 Price Changed $49,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-23 Listed $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-07-20 Sold (Public Records) $38,000 Public Records
• 1999-12-15 Sold (Public Records) $25,000 Public Records
• 1998-09-17 Sold (Public Records) $11,950 Public Records

Property tax history

+9.7%/yr

Latest (2025): $668 · -72.3% YoY. Source: county tax records.