1216 5th St SE · Rochester, MN 55904

$169,900

2 bd · 1.0 ba · 697 sqft · SingleFamily public records · 17 Days on market

Built 1932

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Why this score? — see what drove the D 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 +14.6/30.0
• ARV discount +7.5/15.0
• Livability +4.6/5.0
• DSCR +4.5/10.0
• Schools +4.1/10.0
• 1% rule +3.5/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Excellent SE Rochester investment or flip opportunity! Perfect for an investor or buyer ready to put in some TLC. Close to schools, shopping, dining, clinics, and parks. Property sold As-Is.

Key facts

• Garage
• Built 1932
• Listed 16 days

Property features AI

Exterior

• Parking: Concrete driveway; 1-car garage
• Utilities: City water (connected); City sewer (connected); Natural gas; Electric with circuit breakers; Power provided by Rochester Public Utilities
• Home design: Residential property; One story; Entry level: main; Property renovated
• Construction: Block foundation; Has basement (unfinished, block)
• Exterior features: Full wood fence; Public transit within six blocks; City street frontage; Deck

Interior

• Kitchen: Range; Refrigerator; Kitchen window
• Bedrooms: 2 bedrooms (both on main level)
• Bathrooms: 1 full bathroom (main level)
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Ceiling fan(s); Deck; Kitchen window; Informal dining room; Main floor full bath; Main floor bedroom; Renovated
• Laundry & utility: Washer; Dryer; Laundry in basement

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $170k.

Deal economics

• At list price, monthly cash flow is $41 ($488/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (15.2% below list).
• Recommended offer: $144k (15.2% below list) — sets the bar for 1% rule.
• Cap rate 6.6% vs local median 3.6% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Riverside Central Elementary (math 12% / reading 22%, grade F, #771 of 857 statewide, top 91%, 417 students, 79% FRL); Willow Creek Middle (math 19% / reading 36%, grade F, #213 of 258 statewide, top 82%, 890 students, 45% FRL); Mayo Senior High (math 42% / reading 65%, grade C-, #104 of 471 statewide, top 22%, 1,862 students, 31% FRL) — zoned schools average 52% FRL vs 31% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 33% at this address vs 46% district-wide (-13 pts) — the specific schools serving this property underperform the Rochester Public School District average; the district grade overstates school quality for this exact location.
• Market conditions: Rents rising (+2.1%/yr); 151 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 17 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 16y ago; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $90k; list at $170k implies a 89% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1932 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $144,046 (15.2% below list)

Questions for the listing agent

1. Built in 1932 — 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. Schools are A-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: 0.85% ✗
• Cap rate: 6.58%
• Cash-on-cash: 1.03%
• DSCR: 1.05
• GRM: 9.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.1% rent growth · sell at horizon

5-year hold

• IRR: -15.6%
• Equity multiple: 0.45×
• Total profit: $-26,257
• Equity at exit: $25,333

10-year hold

• IRR: -8.7%
• Equity multiple: 0.48×
• Total profit: $-24,840
• Equity at exit: $14,690

Cash invested: $47,572 (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 55904

• Rents YoY: 2.1%
• Active inventory: 151
• Price-to-rent: 9.8×

Monthly cashflow live

• Estimated rent: $1,440 high
• Mortgage (P&I): −$891
• Tax from tax record: −$136 /mo · $1,626/yr
• Insurance: −$71
• HOA: −$0
• Vacancy / Maint / Mgmt: −$302
• Net cashflow: $41

Break-even live

Break-even rent $1,389

Max offer price $169,900

Occupancy floor 92%

Sensitivity live

Price	-10% $137	-5% $89	+0% $41	+5% $-7	+10% $-55
Rent	-10% $-73	-5% $-16	+0% $41	+5% $98	+10% $154
Rate	-1.0pp $126	-0.5pp $84	base $41	+0.5pp $-3	+1.0pp $-48

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: $42,475
• Closing costs: $5,097
• Reserves months: —
• Total cash needed: —

Rent comps 22 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
223 8th Ave SE Unit 2 Rochester, MN	1.0	1.0	600	$975	$1.62	45d	1	0.36mi
28 6th Ave SE Unit 3 Rochester, MN	1.0	1.0	650	$1,050	$1.62	22d	1	0.50mi
1513 2nd St NE Rochester, MN	1.0	1.0	496	$1,150	$2.32	15d	1	0.59mi
504 E Center St Unit 2 Rochester, MN	1.0	1.0	675	$800	$1.19	45d	1	0.60mi
449 E Center St Rochester, MN	1.0–3.0	1.0–2.0	1165	$2,670	$2.29	15d	40	0.62mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,148	$2.77	15d	91	0.91mi
511 3rd Ave SW Rochester, MN	2.0	1.0	647	$1,795	$2.77	15d	26	1.03mi
401 Broadway Ave N Rochester, MN	2.0	1.0–2.0	799	$1,977	$2.47	15d	22	1.04mi
400 1st Ave NW Rochester, MN	1.0–2.0	1.0–2.0	819	$1,510	$1.84	15d	7	1.08mi
418 6th St SW Unit A418-924 Rochester, MN	1.0	1.0	500	$1,200	$2.40	22d	1	1.10mi
418 6th St SW Unit A418-929 Rochester, MN	1.0	1.0	400	$1,100	$2.75	22d	1	1.10mi
418 6th St SW Unit A418-936 Rochester, MN	1.0	1.0	500	$1,150	$2.30	45d	1	1.10mi
28 7th St NE Rochester, MN	2.0	1.0–2.0	789	$2,750	$3.49	22d	18	1.10mi
504 14th St SE #6 Rochester, MN	2.0	1.0	725	$995	$1.37	45d	1	1.11mi
1427 6th Ave SE Unit 4 Rochester, MN	1.0	1.0	650	$825	$1.27	45d	1	1.12mi
1505 Marion Rd SE Rochester, MN	1.0–3.0	1.0–2.0	864	$1,428	$1.65	15d	1	1.25mi
603 1st St SW Rochester, MN	2.0	1.0	512	$1,295	$2.53	15d	3	1.25mi
621 1st St SW Rochester, MN	1.0	1.0	525	$1,170	$2.23	15d	3	1.29mi
620 2nd St SW Rochester, MN	1.0	1.0	406	$995	$2.45	15d	11	1.29mi
212 7th St NW Unit 3 Rochester, MN	1.0	1.0	350	$950	$2.71	45d	1	1.29mi
625 3rd St SW Rochester, MN	1.0–2.0	1.0	612	$1,395	$2.28	15d	3	1.30mi
718 5th St SW Rochester, MN	2.0	1.0	722	$1,400	$1.94	15d	4	1.35mi

Listing history 15 events

1. 2026-06-21
   days on market $169,900 Active 17 DOM
2. 2026-06-19
   days on market $169,900 Active 15 DOM
3. 2026-06-18
   price $169,900 Active 14 DOM
4. 2026-06-18
   days on market $179,900 Active 14 DOM
5. 2026-06-17
   days on market $179,900 Active 13 DOM
6. 2026-06-16
   days on market $179,900 Active 12 DOM
7. 2026-06-15
   days on market $179,900 Active 11 DOM
8. 2026-06-14
   days on market $179,900 Active 9 DOM
9. 2026-06-13
   days on market $179,900 Active 8 DOM
10. 2026-06-10
    days on market $179,900 Active 6 DOM
11. 2026-06-09
    days on market $179,900 Active 5 DOM
12. 2026-06-08
    days on market $179,900 Active 4 DOM
13. 2026-06-07
    statusdays on market $179,900 Active 3 DOM
14. 2026-06-05
    remarks 699-char remark
15. 2026-06-05
    listed $179,900 Coming Soon 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: $1,626 · $136/mo
• Projected year-2 tax: $1,764 · $147/mo
• Expected delta: +$138/yr (+$12/mo · 8.5%)

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

Taxation est. · year 1

• Rental income: $17,286
• − Mortgage interest: −$9,517
• − Property taxes: −$1,626
• − Insurance: −$850
• − Repairs & maintenance: −$1,383
• − Management: −$1,383
• − Depreciation: −$4,943
• Taxable loss: −$2,415
• Est. tax savings @ 24.0%: +$580
• After-tax cash flow: $1,068/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 29,639
• Household income: $77,016
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 864.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 10% Hispanic / Latino 8% Two or more races 5% Asian 3%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Portuguese 11% Lithuanian 2% Italian 2%
• Foreign-born: 11% · Canada, China, Vietnam
• Languages at home: 84% English-only · Spanish 5% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -161.04%
• Current HPI: 267.168
• Rent YoY: ▲ 2.10%
• Metro: Rochester, 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

+415.5% since first listed

16 events — show timeline

• 2026-06-05 Listed $179,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-06-03 Coming Soon $179,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-31 Sold (MLS) $90,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-26 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-20 Listed $130,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-17 Coming Soon $130,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2012-09-06 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2012-09-06 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2010-12-31 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2010-05-04 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2010-05-04 Listed $74,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-07-28 Sold (Public Records) $71,695 Public Records
• 1999-07-27 Sold (Public Records) $67,000 Public Records
• 1994-02-01 Sold (Public Records) $44,900 Public Records
• 1984-07-01 Sold (Public Records) $34,900 Public Records

Property tax history

+8.6%/yr

Latest (2025): $1,626 · +0.7% YoY. Source: county tax records.