14477 Allerton Way

Rosemount, MN 55068

$324,950D

3 bd · 3.0 ba · 1,772 sqft · Built 2026 · Townhouse · Active · 103 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,547/mo
• Mortgage (P&I): −$1,704
• Tax + insurance: −$542
• HOA: −$280
• Vac / Maint / Mgmt: −$535
• Net cashflow: $-514/mo
• Annual: $-6,162/yr
• Cap rate: 4.40%
• Cash-on-cash: -6.77%
• DSCR: 0.70
• 1% rule: 0.78%
• Cash to close: $90,986

Investor read

• This is a 3-bed/3.0-bath townhouse listed at $325k. Condition is rated excellent.
• At list price, monthly cash flow is $-514 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $251k (22.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $255k (21.6% below list).
• It's been on market 103 days — a 9% lower offer ($296k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $251k (22.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#5 in MN, #148 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities D, cost of living D.
• Rosemount-Apple Valley-Eagan (suburban): math 50% / reading 58% proficiency, ranked #58 of 301 in MN (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Rosemount Elementary (math 57% / reading 51%, grade C, #352 of 857 statewide, top 41%, 775 students, 27% FRL); Rosemount Middle (math 48% / reading 58%, grade C+, #53 of 258 statewide, top 22%, 1,205 students, 20% FRL); Rosemount Senior High (math 54% / reading 67%, grade C+, #43 of 471 statewide, top 9%, 2,425 students, 21% FRL).
• Market conditions: Rents rising fast (+6.0%/yr); 749 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals lingering (median 75d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 65% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 2 sale attempts; this cycle's ask has dropped $47k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 4.4% vs local median 3.6% in Rosemount — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 103 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• 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.
• Schools are A-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?
• 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?
• 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.