7870 Cottage Lane SW #28

Lake Mary, MN 56308

$115,000C

None bd · None ba · — sqft · Built 1992 · SingleFamily · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,398/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$192
• HOA: −$108
• Vac / Maint / Mgmt: −$293
• Net cashflow: $201/mo
• Annual: $2,415/yr
• Cap rate: 8.39%
• Cash-on-cash: 7.50%
• DSCR: 1.33
• 1% rule: 1.22%
• Cash to close: $32,200

Investor read

• This is a single-family listed at $115k. Condition is rated good.
• At list price, monthly cash flow is $201 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $115k).
• It's been on market 21 days — a 2% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $113k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Alexandria Public School District (town): math 55% / reading 57% proficiency, ranked #64 of 301 in MN (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Lincoln Elementary (math 67% / reading 57%, grade B, #180 of 857 statewide, top 23%, 466 students, 38% FRL); Discovery Middle School (math 51% / reading 57%, grade B-, #48 of 258 statewide, top 19%, 913 students, 34% FRL); Alexandria Area High School (math 39% / reading 62%, grade D+, #131 of 471 statewide, top 28%, 1,302 students, 26% FRL).
• Market conditions: 413 active listings in the ZIP; solid renter incomes; 285 units permitted in Douglas County in 2024 (88 in 5+ unit buildings).
• Douglas County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Questions for listing agent

• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Painting the cabinets would refresh the look of the kitchen.
• Minor: Bathroom fixtures — Updating the fixtures would improve the bathroom's appearance and functionality.
• Minor: Living room carpet — Replacing the carpet with a more modern or durable option would enhance the living space's appearance and comfort.