523 Center St

Clinton, MN 56225

$18,000C-

1 bd · 1.0 ba · 1,196 sqft · Built 1900 · SingleFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,037/mo
• Mortgage (P&I): −$94
• Tax + insurance: −$45
• HOA: −$0
• Vac / Maint / Mgmt: −$218
• Net cashflow: $679/mo
• Annual: $8,153/yr
• Cap rate: 51.59%
• Cash-on-cash: 161.76%
• DSCR: 8.20
• 1% rule: 5.76%
• Cash to close: $5,040

Investor read

• This is a 1-bed/1.0-bath single-family listed at $18k.
• At list price, monthly cash flow is $679 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $18k).
• It's been on market 21 days — a 2% lower offer ($18k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $18k (1.5% below list) — sets the bar for market timing.
• In year one you build about $1k of equity ($124 loan paydown + $1k appreciation (6.7% local appreciation)).
• Location reads 69/100 on livability (#366 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B+; Watch: health & safety C-, crime D+, amenities F.
• Clinton-Graceville-Beardsley (rural): math 50% / reading 75% proficiency, ranked #116 of 467 in MN (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Watch-outs: property tax is 2.5% of price; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 5 active listings in the ZIP; 3 units permitted in Big Stone County in 2024 (0 in 5+ unit buildings).
• Big Stone County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (6.7% appreciation + 3.0% rent growth), your $5k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.
• 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.
• 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.