8010 Stratford Cir S

Shakopee, MN 55379

$260,000D

2 bd · 2.0 ba · 1,294 sqft · Built 2001 · Townhouse · Pending · 53 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,067/mo
• Mortgage (P&I): −$1,363
• Tax + insurance: −$295
• HOA: −$309
• Vac / Maint / Mgmt: −$434
• Net cashflow: $-334/mo
• Annual: $-4,013/yr
• Cap rate: 4.75%
• Cash-on-cash: -5.51%
• DSCR: 0.75
• 1% rule: 0.80%
• Cash to close: $72,800

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $260k.
• At list price, monthly cash flow is $-334 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $201k (22.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $207k (20.5% below list).
• It's been on market 53 days — a 3% lower offer ($252k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $201k (22.7% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 90/100 on livability (#3 in MN, #102 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+.
• Shakopee Public School District (suburban): math 42% / reading 56% proficiency, ranked #95 of 301 in MN (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Red Oak Elementary (math 51% / reading 55%, grade C, #361 of 857 statewide, top 42%, 500 students, 58% FRL); Shakopee East Middle School (math 33% / reading 56%, grade D, #118 of 258 statewide, top 48%, 796 students, 43% FRL); Shakopee High School (math 47% / reading 60%, grade C-, #104 of 471 statewide, top 22%, 2,770 students, 38% FRL) — zoned schools average 46% FRL vs 26% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising fast (+4.0%/yr); 464 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 699 units permitted in Scott County in 2024 (84 in 5+ unit buildings).
• Scott County population projected at +31% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 24y 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.
• Current owner paid $225k; 16% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.7% vs local median 3.3% in Shakopee — 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.

Questions for listing agent

• 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?
• It's been on market 53 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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?
• 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.