1365 Oak Beach Dr · Fairmont, MN 56031

$105,000

2 bd · 1.0 ba · 825 sqft · SingleFamily public records · 36 Days on market

Built 1940 4,356 sqft lot $127/sqft · at area comps Est $102k · at est.

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Why this score? — see what drove the C- 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 +20.6/30.0
• DSCR +6.5/10.0
• ARV discount +6.4/15.0
• 1% rule +4.6/10.0
• Schools +4.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Located within walking distance of Fairmont's largest park and shoreline of two lakes, this home has many possibilities and many options to chose from (live in and/or rent month to month in the summer). The home features hardwood floors on the main and upper levels. Both bedrooms and the bath are located on the upper level. The bedroom closets are 7x2 and 5x2. The furnace was installed in 2023 along with the water heater in 2022. The home also has new window inserts in most of the windows. They also blew-in extra insulation for cooler summers and warming winters.

Key facts

• 4,356 sq ft lot
• Garage
• Built 1940

Property features AI

Exterior

• Parking: Attached insulated garage with garage door opener; 1-car garage (garage door approx. 9' wide x 7' high; interior ~20x10)
• Utilities: City water; City sewer; Natural gas
• Home design: Residential property; One and one-half story
• Construction: Block foundation; Asphalt roof; Foundation area about 575 (foundation dimensions ~25x23)
• Exterior features: Wood exterior

Interior

• Kitchen: Range; Refrigerator; Kitchen window
• Bedrooms: 2 bedrooms (both on the upper level)
• Bathrooms: 1 full bathroom (upper level)
• Heating & cooling: Forced air heating; No central cooling
• Interior features: Range; Refrigerator; Kitchen window; Walk-in closet
• Laundry & utility: Laundry in basement

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $105k.

Deal economics

• At list price, monthly cash flow is $140 ($2k/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 $101k (3.6% below list).
• Recommended offer: $101k (3.6% below list) — sets the bar for 1% rule.
• Cap rate 7.9% vs local median 3.3% in Fairmont — 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 68/100 on livability (#407 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, amenities F.
• Fairmont Area School District (town): math 45% / reading 51% proficiency, ranked #148 of 301 in MN (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 93 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $726 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Martin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 36 days — a 3% lower offer ($102k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 6y 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 $26k; list at $105k implies a 296% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $101,228 (3.6% below list)

Questions for the listing agent

1. It's been on market 36 days. Have you received any prior offers? Is the seller open to a 4% concession, seller financing, or rate buy-down credit?
2. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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.
5. 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.
6. 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: 0.96% ✗
• Cap rate: 7.89%
• Cash-on-cash: 5.71%
• DSCR: 1.25
• GRM: 8.6

CMA / ARV

• ARV (median comp): $102,395
• List price: $105,000
• Delta: 2.54%
• Verdict: FAIR
• Comps: 1 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -7.5%
• Equity multiple: 0.72×
• Total profit: $-8,134
• Equity at exit: $15,656

10-year hold

• IRR: 2.0%
• Equity multiple: 1.15×
• Total profit: $4,281
• Equity at exit: $9,078

Cash invested: $29,400 (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 56031

• Active inventory: 93
• Price-to-rent: 8.6×

Monthly cashflow live

• Estimated rent: $1,012 medium
• Mortgage (P&I): −$551
• Tax from tax record: −$66 /mo · $786/yr
• Insurance: −$44
• HOA: −$0
• Vacancy / Maint / Mgmt: −$213
• Net cashflow: $140

Break-even live

Break-even rent $835

Max offer price $105,000

Occupancy floor 81%

Sensitivity live

Price	-10% $199	-5% $170	+0% $140	+5% $110	+10% $80
Rent	-10% $60	-5% $100	+0% $140	+5% $180	+10% $220
Rate	-1.0pp $193	-0.5pp $167	base $140	+0.5pp $113	+1.0pp $85

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: $26,250
• Closing costs: $3,150
• Reserves months: —
• Total cash needed: —

Listing history 23 events

1. 2026-06-12
   statusdays on market $105,000 Pending 36 DOM
2. 2026-06-09
   days on market $105,000 Contingent - Inspection 34 DOM
3. 2026-06-08
   days on market $105,000 Contingent - Inspection 33 DOM
4. 2026-06-07
   statusdays on market $105,000 Contingent - Inspection 32 DOM
5. 2026-06-05
   days on market $105,000 Active 30 DOM
6. 2026-06-04
   days on market $105,000 Active 28 DOM
7. 2026-06-02
   days on market $105,000 Active 27 DOM
8. 2026-06-01
   days on market $105,000 Active 26 DOM
9. 2026-05-31
   days on market $105,000 Active 25 DOM
10. 2026-05-31
    days on market $105,000 Active 24 DOM
11. 2026-05-06
    listed $105,000 Active 569-char remark
12. 2026-01-13
    historical
13. 2025-11-05
    price $109,900
14. 2025-08-23
    price $115,000
15. 2025-07-30
    status Active
16. 2025-07-16
    status Pending
17. 2025-07-09
    listed $129,900 Active
18. 2021-01-31
    historical
19. 2020-11-04
    listed $69,000 Active
20. 2020-10-31
    historical
21. 2020-09-22
    price $69,000
22. 2020-08-05
    listed $75,000 Active
23. 2003-05-14
    soldstatus $26,500

ⓘ 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: $786 · $66/mo
• Projected year-2 tax: $981 · $82/mo
• Expected delta: +$195/yr (+$16/mo · 24.8%)

ⓘ 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 · 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 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,147
• − Mortgage interest: −$5,882
• − Property taxes: −$786
• − Insurance: −$525
• − Repairs & maintenance: −$972
• − Management: −$972
• − Depreciation: −$3,055
• Taxable loss: −$43
• Est. tax savings @ 24.0%: +$10
• After-tax cash flow: $1,688/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: Fairmont Area School District
• NCES district ID: 2700124
• Math proficiency: 45% ▼ -13.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $46,280
• Composite: 40.76/100
• National rank: #3648
• State rank: #148 of 301 in MN

Livability — Fairmont

• Score: 68/100
• State rank: #407
• US rank: #9480

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Fairmont, MN
• City population: 11,800
• Population (ZIP): 11,800

Population outlook (Martin County) Hauer SSP2

• Today (2025): 18,583 people
• By 2030: 17,814 · -4.1%
• By 2040: 16,312 · -12.2%
• By 2050: 15,021 · -19.2%
• By 2075: 13,025 · -29.9%
• By 2100: 11,311 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Hispanic / Latino 8% Two or more races 3%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 11% Romanian 6% Italian 2%
• Foreign-born: 3% · Canada, China
• Languages at home: 93% English-only · Spanish 5%

Political lean MEDSL · Martin

• 2024 margin: Solid R (+39.7) · D 29.5% · R 69.1% · Other 1.4%
• 2008→2024 swing: -24.4pp toward R · 2008: -15.2pp · 2024: -39.7pp
• All cycles: 2024: R+39.7 2020: R+37.9 2016: R+41.4 2012: R+23.8 2008: R+15.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -143.34%
• Current HPI: 191.514
• 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

+296.2% since first listed

17 events — show timeline

• 2026-06-11 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-06-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-28 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-23 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-06 Listed $105,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-13 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-05 Price Changed $109,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-08-23 Price Changed $115,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-30 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-16 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-09 Listed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2021-01-31 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2020-11-04 Listed $69,000 NORTHSTARMLS as Distributed by MLS Grid
• 2020-10-31 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2020-09-22 Price Changed $69,000 NORTHSTARMLS as Distributed by MLS Grid
• 2020-08-05 Listed $75,000 NORTHSTARMLS as Distributed by MLS Grid
• 2003-05-14 Sold (Public Records) $26,500 Public Records

Property tax history

+0.8%/yr

Latest (2025): $786 · -2.2% YoY. Source: county tax records.