12 Linney St · Babbitt, MN 55706

$425,000

5 bd · 4.0 ba · 1,728 sqft · MultiFamily public records · 95 Days on market

Built 1977 1.10 ac lot

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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 +10.4/30.0
• ARV discount +7.5/15.0
• Livability +3.8/5.0
• Schools +3.6/10.0
• DSCR +3.0/10.0
• 1% rule +2.5/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 4 units. estimate disagrees with records

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Outstanding multi-family opportunity in the heart of Babbitt! This well-maintained 4-plex offers the perfect setup for both investors and owner-occupants. Live comfortably in the spacious owner’s unit while rental income from the additional units and detached garages helps offset your monthly mortgage expenses, or maximize the property as a full income-producing investment. The property has seen numerous recent improvements, including new roofs on both buildings, updated siding, and fresh exterior paint, providing peace of mind for years to come. Tenants enjoy access to a shared laundry area, while the owner’s unit features private laundry and a cozy gas fireplace that adds warmth and character to the space. Additional upgrades include newer windows and other key updates throughout the property. Conveniently located near lakes, parks, snowmobile and ATV trails, and endless outdoor recreation, this property combines strong rental potential with a desirable northern Minnesota location. Whether you’re a first-time buyer looking to build equity while tenants contribute toward your housing costs or an investor searching for a solid addition to your portfolio, this property offers exceptional opportunity and long-term potential.

Key facts

• New siding
• Fresh paint
• Detached garages

Tags

• MULTI-FAMILY OPPORTUNITY
• SPACIOUS OWNER'S UNIT
• DETACHED GARAGES
• NEW ROOF
• NEW SIDING
• FRESH PAINT

What this means for you Summary

Snapshot

• This is a 4 × 2-bed/1.0-bath units multifamily listed at $425k.

Deal economics

• At list price, monthly cash flow is $-226 ($-3k/yr) — negative. Per door: $-57/mo.
• To cash-flow at today's rent, offer at most $385k (9.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $317k (25.5% below list).
• Recommended offer: $317k (25.5% below list) — sets the bar for 1% rule.
• Cap rate 5.7% vs local median 2.8% in Babbitt — 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 76/100 on livability (#156 in MN, #3,426 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, employment C-, amenities F.
• St. Louis County School District (rural): math 34% / reading 49% proficiency, ranked #212 of 301 in MN (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 23 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 95 days — a 9% lower offer ($387k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 5y ago; this cycle's ask has dropped $24k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $230k; list at $425k implies a 85% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $316,800 (25.5% below list)

Questions for the listing agent

1. 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?
2. It's been on market 95 days. Have you received any prior offers? Is the seller open to a 25% concession, seller financing, or rate buy-down credit?
3. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
4. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
5. Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. 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?
9. 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.
10. 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.
11. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.75% ✗
• Cap rate: 5.65%
• Cash-on-cash: -2.28%
• DSCR: 0.90
• GRM: 11.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -20.1%
• Equity multiple: 0.30×
• Total profit: $-83,370
• Equity at exit: $63,369

10-year hold

• IRR: -13.2%
• Equity multiple: 0.23×
• Total profit: $-91,493
• Equity at exit: $36,746

Cash invested: $119,000 (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 55706

• Home prices YoY: -19.7%
• Active inventory: 23
• Price-to-rent: 44.7×

Monthly cashflow live

• Estimated rent: $3,168 medium
• Mortgage (P&I): −$2,229
• Tax from tax record: −$323 /mo · $3,880/yr
• Insurance: −$177
• HOA: −$0
• Vacancy / Maint / Mgmt: −$665
• Net cashflow: $-226

Break-even live

Break-even rent $3,455

Max offer price $384,998

Occupancy floor —

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	2	1	$3,168
Total (4 units)			$3,168

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: $106,250
• Closing costs: $12,750
• Reserves months: —
• Total cash needed: —

Listing history 28 events

1. 2026-06-19
   days on market $425,000 Active 95 DOM
2. 2026-06-18
   days on market $425,000 Active 94 DOM
3. 2026-06-17
   days on market $425,000 Active 93 DOM
4. 2026-06-16
   days on market $425,000 Active 92 DOM
5. 2026-06-15
   days on market $425,000 Active 91 DOM
6. 2026-06-14
   days on market $425,000 Active 89 DOM
7. 2026-06-13
   days on market $425,000 Active 88 DOM
8. 2026-06-10
   days on market $425,000 Active 86 DOM
9. 2026-06-09
   days on market $425,000 Active 85 DOM
10. 2026-06-08
    days on market $425,000 Active 84 DOM
11. 2026-06-07
    days on market $425,000 Active 83 DOM
12. 2026-06-02
    pricedays on market $425,000 Active 78 DOM
13. 2026-06-01
    days on market $449,000 Active 77 DOM
14. 2026-05-31
    days on market $449,000 Active 76 DOM
15. 2026-05-30
    days on market $449,000 Active 75 DOM
16. 2026-05-01
    status Active 1263-char remark

    Show marketing remark (1263 chars)

    Outstanding multi-family opportunity in the heart of Babbitt! This well-maintained 4-plex offers the perfect setup for both investors and owner-occupants. Live comfortably in the spacious owner’s unit while rental income from the additional units and detached garages helps offset your monthly mortgage expenses, or maximize the property as a full income-producing investment. The property has seen numerous recent improvements, including new roofs on both buildings, updated siding, and fresh exterior paint, providing peace of mind for years to come. Tenants enjoy access to a shared laundry area, while the owner’s unit features private laundry and a cozy gas fireplace that adds warmth and character to the space. Additional upgrades include newer windows and other key updates throughout the property. Conveniently located near lakes, parks, snowmobile and ATV trails, and endless outdoor recreation, this property combines strong rental potential with a desirable northern Minnesota location. Whether you’re a first-time buyer looking to build equity while tenants contribute toward your housing costs or an investor searching for a solid addition to your portfolio, this property offers exceptional opportunity and long-term potential.

17. 2026-04-28
    historical 1263-char remark

    Show marketing remark (1263 chars)

    Outstanding multi-family opportunity in the heart of Babbitt! This well-maintained 4-plex offers the perfect setup for both investors and owner-occupants. Live comfortably in the spacious owner’s unit while rental income from the additional units and detached garages helps offset your monthly mortgage expenses, or maximize the property as a full income-producing investment. The property has seen numerous recent improvements, including new roofs on both buildings, updated siding, and fresh exterior paint, providing peace of mind for years to come. Tenants enjoy access to a shared laundry area, while the owner’s unit features private laundry and a cozy gas fireplace that adds warmth and character to the space. Additional upgrades include newer windows and other key updates throughout the property. Conveniently located near lakes, parks, snowmobile and ATV trails, and endless outdoor recreation, this property combines strong rental potential with a desirable northern Minnesota location. Whether you’re a first-time buyer looking to build equity while tenants contribute toward your housing costs or an investor searching for a solid addition to your portfolio, this property offers exceptional opportunity and long-term potential.

18. 2026-03-14
    listed $449,000 Active 1263-char remark

    Show marketing remark (1007 chars)

    Excellent multi-family opportunity in the heart of Babbitt! This well-maintained 4-plex offers incredible flexibility — live in the spacious owner’s unit while generating income from the additional three units and detached garages, or utilize the entire property as a strong investment opportunity. The property features numerous updates, including a new roof on both buildings, new siding, and fresh paint, giving you peace of mind on major components. Tenants enjoy a shared laundry room, while the owner’s unit offers private laundry facilities and a beautiful gas fireplace for added comfort and charm. Additional updates include newer windows and other key improvements throughout. Located close to lakes, parks, and recreational trails, this property combines strong income potential with an attractive location. Whether you're looking to offset your mortgage with rental income or expand your investment portfolio, this property offers outstanding upside potential. Motivated seller

19. 2026-03-14
    listed $449,000 Active 1007-char remark

    Show marketing remark (1007 chars)

    Excellent multi-family opportunity in the heart of Babbitt! This well-maintained 4-plex offers incredible flexibility — live in the spacious owner’s unit while generating income from the additional three units and detached garages, or utilize the entire property as a strong investment opportunity. The property features numerous updates, including a new roof on both buildings, new siding, and fresh paint, giving you peace of mind on major components. Tenants enjoy a shared laundry room, while the owner’s unit offers private laundry facilities and a beautiful gas fireplace for added comfort and charm. Additional updates include newer windows and other key improvements throughout. Located close to lakes, parks, and recreational trails, this property combines strong income potential with an attractive location. Whether you're looking to offset your mortgage with rental income or expand your investment portfolio, this property offers outstanding upside potential. Motivated seller

20. 2022-04-06
    soldstatus $230,000
21. 2022-04-01
    soldstatus $230,000
22. 2022-04-01
    soldstatus $230,000
23. 2022-04-01
    soldstatus $230,000 Sold
24. 2021-12-23
    status Pending
25. 2021-09-07
    listed $249,000
26. 2021-09-07
    listed $249,000 Active
27. 2021-09-03
    listed $249,000
28. 2004-08-02
    soldstatus $162,500

ⓘ 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: $3,880 · $323/mo
• Projected year-2 tax: $4,320 · $360/mo
• Expected delta: +$440/yr (+$37/mo · 11.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥90°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $38,016
• − Mortgage interest: −$23,807
• − Property taxes: −$3,880
• − Insurance: −$2,125
• − Repairs & maintenance: −$3,041
• − Management: −$3,041
• − Depreciation: −$12,364
• Taxable loss: −$10,242
• Est. tax savings @ 24.0%: +$2,458
• After-tax cash flow: $-259/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: St. Louis County School District
• NCES district ID: 2700008
• Math proficiency: 34% ▼ -7.00%
• Reading proficiency: 49% ▼ -6.00%
• Median HH income: $49,389
• Composite: 35.63/100
• National rank: #4886
• State rank: #212 of 301 in MN

Livability — Babbitt

• Score: 76/100
• State rank: #156
• US rank: #3426

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Babbitt, MN
• City population: 1,827
• Population (ZIP): 1,827

Population outlook (St. Louis County) Hauer SSP2

• Today (2025): 202,411 people
• By 2030: 203,234 · +0.4%
• By 2040: 202,520 · +0.1%
• By 2050: 200,853 · -0.8%
• By 2075: 200,943 · -0.7%
• By 2100: 192,058 · -5.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 4% Hispanic / Latino 3% Native American 1%
• Common ancestry: Portuguese 9% Romanian 6% Lithuanian 4%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 1%

Political lean MEDSL · St. Louis

• 2024 margin: D (+13.7) · D 55.9% · R 42.2% · Other 1.8%
• 2008→2024 swing: -18.8pp toward R · 2008: 32.5pp · 2024: 13.7pp
• All cycles: 2024: D+13.7 2020: D+15.6 2016: D+11.8 2012: D+29.6 2008: D+32.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -49.97%
• Current HPI: 204.0097
• 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

+176.3% since first listed

13 events — show timeline

• 2026-05-01 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-14 Listed $449,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-14 Listed $449,000 RAOR
• 2022-04-06 Sold (Public Records) $230,000 Public Records
• 2022-04-01 Sold (MLS) $230,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-04-01 Sold (MLS) $230,000 LSAR
• 2022-04-01 Sold (MLS) $230,000 RAOR
• 2021-12-23 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2021-09-07 Listed $249,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-09-07 Listed $249,000 RAOR
• 2021-09-03 Listed $249,000 LSAR
• 2004-08-02 Sold (Public Records) $162,500 Public Records

Property tax history

+4.8%/yr

Latest (2025): $3,880 · +6.5% YoY. Source: county tax records.