31 Chestnut St E #3

Trimont, MN 56176

$65,000D

1 bd · 1.0 ba · 600 sqft · Built 1945 · Other · Active · 109 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $761/mo
• Mortgage (P&I): −$341
• Tax + insurance: −$108
• HOA: −$275
• Vac / Maint / Mgmt: −$160
• Net cashflow: $-123/mo
• Annual: $-1,478/yr
• Cap rate: 4.02%
• Cash-on-cash: -8.12%
• DSCR: 0.64
• 1% rule: 1.17%
• Cash to close: $18,200

Investor read

• This is a 1-bed/1.0-bath other listed at $65k. Condition is rated good.
• At list price, monthly cash flow is $-123 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $47k (27.4% below list).
• Meets the 1% rule at list price ($761 rent vs $65k).
• It's been on market 109 days — a 9% lower offer ($59k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $47k (27.4% below list) — sets the bar for cash-flow.
• In year one you build about $7k of equity ($449 loan paydown + $6k appreciation (10.0% local appreciation)).
• Location reads 72/100 on livability (#288 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, amenities F, commute F.
• Martin County West School District (rural): math 38% / reading 50% proficiency, ranked #187 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Trimont Elementary (math 42% / reading 52%, grade D-, #492 of 857 statewide, top 61%, 185 students, 48% FRL); Martin County West Junior High (math 27% / reading 37%, grade F, #188 of 258 statewide, top 73%, 95 students, 47% FRL); Martin County West Senior High (math 44% / reading 64%, grade C-, #87 of 471 statewide, top 22%, 224 students, 48% FRL) — zoned schools average 48% FRL vs 28% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 36% of rent; built in 1945 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 12 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).
• Martin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 5, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 109 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1945 — 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?
• 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.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — slight wear
• Minor: bathroom fixtures — basic design