2800 Hillsboro Ave N #307

New Hope, MN 55427

$84,900D

2 bd · 1.5 ba · 1,085 sqft · Built 1970 · Condo · Active · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,549/mo
• Mortgage (P&I): −$445
• Tax + insurance: −$195
• HOA: −$857
• Vac / Maint / Mgmt: −$325
• Net cashflow: $-274/mo
• Annual: $-3,283/yr
• Cap rate: 2.43%
• Cash-on-cash: -13.81%
• DSCR: 0.39
• 1% rule: 1.82%
• Cash to close: $23,772

Investor read

• This is a 2-bed/1.5-bath condo listed at $85k.
• At list price, monthly cash flow is $-274 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $38k (54.9% below list).
• Meets the 1% rule at list price ($2k rent vs $85k).
• It's been on market 68 days — a 6% lower offer ($80k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $38k (54.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $587 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#9 in MN, #345 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, housing A+.
• Robbinsdale Public School District (suburban): math 24% / reading 44% proficiency, ranked #250 of 301 in MN (top 83%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Neill Elementary (math 27% / reading 42%, grade F, #655 of 857 statewide, top 78%, 361 students, 76% FRL); Plymouth Middle (math 18% / reading 55%, grade F, #169 of 258 statewide, top 65%, 836 students, 50% FRL); Robbinsdale Armstrong Senior High (math 37% / reading 58%, grade D, #162 of 471 statewide, top 35%, 1,832 students, 45% FRL) — zoned schools average 57% FRL vs 41% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 55% of rent.
• Market conditions: Rents rising fast (+7.4%/yr); 126 active listings in the ZIP; 19 comparable units currently listed for rent nearby; rentals leasing fast (median 6d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 5 sale attempts since 23y ago; this cycle's ask has dropped $26k (23%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 2.4% vs local median 3.8% in New Hope — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 68 days. Have you received any prior offers? Is the seller open to a 55% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?