2126 3rd Avenue Nw Home Site #63 · Owatonna, MN 55060

$89,000

2 bd · 2.0 ba · 840 sqft · Manufactured public records · 258 Days on market

Built 2025

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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 +7.7/10.0
• ARV discount +7.5/15.0
• Livability +3.8/5.0
• Schools +3.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Primary Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

Key facts

• Built 2025
• Listed 257 days

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath manufactured listed at $89k.

Deal economics

• At list price, monthly cash flow is $358 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $89k).
• Recommended offer: $78k (12.0% below list) — sets the bar for market timing.
• Cap rate 11.1% vs local median 3.2% in Owatonna — 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.

Location & tenants

• Location reads 76/100 on livability (#155 in MN, #3,413 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities D-, commute F, health & safety D-.
• Owatonna Public School District (town): math 38% / reading 47% proficiency, ranked #194 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Wilson Elementary (math 42% / reading 32%, grade F, #636 of 857 statewide, top 76%, 537 students, 75% FRL); Owatonna Middle School (math 25% / reading 42%, grade F, #182 of 258 statewide, top 71%, 999 students, 49% FRL); Owatonna Senior High (math 49% / reading 65%, grade C, #64 of 471 statewide, top 16%, 1,475 students, 39% FRL) — zoned schools average 54% FRL vs 34% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 222 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 28 units permitted in Steele County in 2024 (0 in 5+ unit buildings).
• This rent is only 16% of the median local income ($85k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Steele County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 258 days — a 12% lower offer ($78k) is reasonable based on typical stale-listing flexibility.
• 3 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.

Recommended offer $78,320 (12.0% below list)

Questions for the listing agent

1. It's been on market 258 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
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: 1.27% ✓
• Cap rate: 11.12%
• Cash-on-cash: 17.24%
• DSCR: 1.77
• GRM: 6.6

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: 8.5%
• Equity multiple: 1.33×
• Total profit: $8,347
• Equity at exit: $13,270

10-year hold

• IRR: 17.7%
• Equity multiple: 2.46×
• Total profit: $36,495
• Equity at exit: $7,695

Cash invested: $24,920 (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 55060

• Home prices YoY: -30.5%
• Active inventory: 222
• Price-to-rent: 6.6×

Monthly cashflow live

• Estimated rent: $1,128 high
• Mortgage (P&I): −$467
• Tax from tax record: −$30 /mo · $356/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$237
• Net cashflow: $358

Break-even live

Break-even rent $675

Max offer price $89,000

Occupancy floor 63%

Sensitivity live

Price	-10% $408	-5% $383	+0% $358	+5% $333	+10% $308
Rent	-10% $269	-5% $313	+0% $358	+5% $403	+10% $447
Rate	-1.0pp $403	-0.5pp $381	base $358	+0.5pp $335	+1.0pp $311

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: $22,250
• Closing costs: $2,670
• Reserves months: —
• Total cash needed: —

Rent comps 11 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2126 3rd Ave NW Owatonna, MN	2.0–3.0	2.0	1264	$1,210	$0.96	45d	1	0.03mi
250 21st St NW Owatonna, MN	2.0	1.0	610	$1,100	$1.80	45d	5	0.06mi
166 22nd St NW Apt 104 Owatonna, MN	1.0	1.0	600	$1,000	$1.67	45d	1	0.21mi
431 State Ave Unit 9 Owatonna, MN	1.0	1.0	600	$949	$1.58	45d	1	1.13mi
421 State Ave Unit 203 Owatonna, MN	1.0	1.0	700	$949	$1.36	45d	1	1.16mi
312 Riverside Ave Unit 1 Owatonna, MN	2.0	1.0	1000	$1,300	$1.30	45d	1	1.21mi
1575 24th Ave NW Unit 207 Owatonna, MN	2.0	2.0	996	$1,585	$1.59	45d	1	1.22mi
230 E Rose St Unit 2 Owatonna, MN	2.0	1.0	850	$975	$1.15	45d	1	1.26mi
236 E Rose St Unit 236 1/2 Owatonna, MN	2.0	1.0	900	$1,100	$1.22	45d	1	1.27mi
325 Florence Ave Unit 313 Owatonna, MN	2.0	2.0	1046	$1,605	$1.53	45d	1	1.37mi
328 Pine Ave Unit 1 Owatonna, MN	1.0	1.0	700	$995	$1.42	45d	1	1.41mi

Listing history 23 events

1. 2026-06-22
   days on market $89,000 Active 258 DOM
2. 2026-06-21
   days on market $89,000 Active 257 DOM
3. 2026-06-19
   days on market $89,000 Active 255 DOM
4. 2026-06-18
   days on market $89,000 Active 254 DOM
5. 2026-06-17
   days on market $89,000 Active 253 DOM
6. 2026-06-16
   days on market $89,000 Active 252 DOM
7. 2026-06-15
   days on market $89,000 Active 251 DOM
8. 2026-06-14
   days on market $89,000 Active 249 DOM
9. 2026-06-12
   days on market $89,000 Active 248 DOM
10. 2026-06-09
    days on market $89,000 Active 245 DOM
11. 2026-06-08
    days on market $89,000 Active 244 DOM
12. 2026-06-07
    days on market $89,000 Active 243 DOM
13. 2026-06-05
    days on market $89,000 Active 240 DOM
14. 2026-06-03
    days on market $89,000 Active 239 DOM
15. 2026-06-02
    days on market $89,000 Active 238 DOM
16. 2026-06-01
    days on market $89,000 Active 237 DOM
17. 2026-05-31
    days on market $89,000 Active 236 DOM
18. 2026-05-30
    days on market $89,000 Active 235 DOM
19. 2026-02-10
    price $88,999 754-char remark

    Show marketing remark (754 chars)

    Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Primary Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

20. 2025-12-06
    status Active 754-char remark

    Show marketing remark (754 chars)

    Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Primary Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

21. 2025-10-08
    historical 754-char remark

    Show marketing remark (753 chars)

    Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Master Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

22. 2025-10-08
    listed $89,000 Active 753-char remark

    Show marketing remark (753 chars)

    Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Master Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

23. 2025-08-26
    listed $89,000 Active 754-char remark

    Show marketing remark (754 chars)

    Welcome home! This spacious 2 bedroom, 2 bathroom home offers the perfect mix of comfort and charm - with modern features, an open layout, and plenty of room to make your own! Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Primary Bedroom w/ Ensuite Bathroom & Walk-In Closet * Open Concept And the best part? You're not just getting a beautiful home - you're joining a wonderful community you'll love coming home to every day! Community Features You'll Love: * Clean, Quite, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining With so much to love inside and out, all that's missing is you! Schedule your private tour today!

ⓘ 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: $356 · $30/mo
• Projected year-2 tax: $676 · $56/mo
• Expected delta: +$320/yr (+$27/mo · 90.0%)

ⓘ 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 (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥100°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: $13,542
• − Mortgage interest: −$4,985
• − Property taxes: −$356
• − Insurance: −$445
• − Repairs & maintenance: −$1,083
• − Management: −$1,083
• − Depreciation: −$2,589
• Taxable income: $2,999
• Est. tax owed @ 24.0%: −$720
• After-tax cash flow: $3,576/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: Owatonna Public School District
• NCES district ID: 2728050
• Math proficiency: 38% ▼ -12.00%
• Reading proficiency: 47% ▼ -7.00%
• Median HH income: $56,373
• Composite: 37.14/100
• National rank: #4487
• State rank: #194 of 301 in MN

Livability — Owatonna

• Score: 76/100
• State rank: #155
• US rank: #3413

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Owatonna, MN
• County: Steele County · 29,599 people
• City population: 29,599
• Metro: Owatonna, MN
• Population (ZIP): 29,599
• Household income: $84,906
• Rent vs Own: 22.8% rent · 77.2% own
• Severe rent burden: 598.0

Population outlook (Steele County) Hauer SSP2

• Today (2025): 36,618 people
• By 2030: 36,195 · -1.2%
• By 2040: 34,882 · -4.7%
• By 2050: 33,052 · -9.7%
• By 2075: 29,692 · -18.9%
• By 2100: 25,581 · -30.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Hispanic / Latino 8% Two or more races 5% Black 4%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 16% Romanian 3% Italian 2%
• Foreign-born: 5% · Canada, South Korea
• Languages at home: 93% English-only · Spanish 4%

Political lean MEDSL · Steele

• 2024 margin: Strong R (+24.5) · D 36.8% · R 61.2% · Other 2.0%
• 2008→2024 swing: -19.1pp toward R · 2008: -5.3pp · 2024: -24.5pp
• All cycles: 2024: R+24.5 2020: R+22.4 2016: R+26.0 2012: R+6.3 2008: R+5.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -92.54%
• Current HPI: 211.0177
• Rent YoY: —
• Metro: Owatonna, MN
• 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

-0.0% since first listed

5 events — show timeline

• 2026-02-10 Price Changed $88,999 Zillow
• 2025-12-06 Relisted — Zillow
• 2025-10-08 Delisted — Zillow
• 2025-10-08 Listed $89,000 Zillow
• 2025-08-26 Listed $89,000 Zillow

Property tax history

+0.1%/yr

Latest (2025): $356 · +1.7% YoY. Source: county tax records.