408 Atlantic Ave

Waverly, MN 55390

$205,000C-

4 bd · 4.0 ba · 1,501 sqft · Built 1900 · MultiFamily · Active · 48 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,200/mo
• Mortgage (P&I): −$1,075
• Tax + insurance: −$342
• HOA: −$0
• Vac / Maint / Mgmt: −$462
• Net cashflow: $321/mo
• Annual: $3,855/yr
• Cap rate: 8.17%
• Cash-on-cash: 6.72%
• DSCR: 1.30
• 1% rule: 1.07%
• Cash to close: $57,400

Investor read

• This is a 2 × 1-bed/1-bath units multifamily listed at $205k. Condition is rated fair.
• At list price, monthly cash flow is $321 ($4k/yr) — positive. Per door: $161/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $205k).
• It's been on market 48 days — a 3% lower offer ($199k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $199k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#318 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: health & safety D+, amenities F, commute F.
• Howard Lake-Waverly-Winsted (rural): math 42% / reading 53% proficiency, ranked #139 of 301 in MN (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Humphrey Elementary (math 62% / reading 57%, grade B-, #216 of 857 statewide, top 29%, 278 students, 32% FRL); Howard Lake-Waverly-Winsted Middle (math 38% / reading 60%, grade C-, #85 of 258 statewide, top 33%, 400 students, 35% FRL); Howard Lake-Waverly-Winsted Sec. (math 34% / reading 37%, grade F, #303 of 471 statewide, top 65%, 398 students, 29% FRL).
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 38 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,260 units permitted in Wright County in 2024 (180 in 5+ unit buildings).
• Wright County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 5y ago; this cycle's ask has dropped $44k (18%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $88k; list at $205k implies a 134% gain — meaningful room to come down on a strong offer.
• Cap rate 8.2% vs local median 3.3% in Waverly — 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

• It's been on market 48 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — Severe weathering
• Major: exterior windows — Visible wear
• Major: exterior doors — Visible wear
• Major: exterior foundation — No visible damage
• Major: exterior landscaping — Overgrown lawn and cluttered yard