508 2nd St SE · Pelican Rapids, MN 56572

$170,000

3 bd · 2.0 ba · 1,894 sqft · SingleFamily public records · 9 Days on market

Built 1960 0.28 ac lot

---

Why this score? — see what drove the C 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 +21.9/30.0
• ARV discount +7.5/15.0
• DSCR +7.0/10.0
• 1% rule +5.5/10.0
• Schools +4.3/10.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Pelican Rapids - 3 bedroom, 2 bath city home with full walk out basement. This comfortable home includes a main floor family room/sun room and a rec room in the walk out basement. The large lot is fenced on two sides (chain link fencing). Attached one car garage.

Key facts

• 0.28 acre lot
• Garage
• Built 1960

Property features AI

Exterior

• Parking: Attached garage (1 car)
• Utilities: City water connected; City sewer connected; Natural gas fuel; Electric service by Ottertail Power
• Home design: Residential single-level (one story); Entry level: main level; Above- and below-grade finished living areas present
• Construction: Frame construction; Asphalt roof (age 8 years or less); Block foundation; Built with a 24 x 56 foundation footprint
• Exterior features: Vinyl exterior; Covered patio/porch; Deck; Chain link fencing; Lot on a public-maintained city street; includes a dead-end/no outlet frontage (80 x 150)

Interior

• Kitchen: Range; Microwave; Dishwasher; Refrigerator
• Bedrooms: Three bedrooms on the main level
• Bathrooms: One full bathroom on the main level; One three-quarter bathroom in the basement
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Free-standing wood-burning stove fireplace; Full basement with block foundation; Eat-in kitchen; 3 bedrooms on one level (main floor bedrooms); Recreation room; Storage and utility rooms
• Laundry & utility: Washer hookup; Electric dryer hookup; Laundry in basement; Gas water heater; Owned water softener

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $170k.

Deal economics

• At list price, monthly cash flow is $269 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $170k).
• Cap rate 8.2% vs local median 1.4% in Pelican Rapids — 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 78/100 on livability (#114 in MN, #2,581 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Pelican Rapids Public School District (rural): math 45% / reading 54% proficiency, ranked #123 of 301 in MN (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Viking Elementary School (math 58% / reading 62%, grade B-, #209 of 857 statewide, top 25%, 460 students, 61% FRL); Pelican Rapids Alt Center Mid-Level (math 10% / reading 10%); Pelican Rapids Secondary (math 32% / reading 47%, grade F, #246 of 471 statewide, top 59%, 405 students, 56% FRL) — zoned schools average 58% FRL vs 39% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 36% at this address vs 50% district-wide (-13 pts) — the specific schools serving this property underperform the Pelican Rapids Public School District average; the district grade overstates school quality for this exact location.
• Market conditions: 175 active listings in the ZIP; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.

Negotiation context

• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

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

Recommended offer $170,000

Questions for the listing agent

1. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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.

Investment metrics

• 1% rule: 1.05% ✓
• Cap rate: 8.19%
• Cash-on-cash: 6.78%
• DSCR: 1.30
• GRM: 7.9

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: -5.9%
• Equity multiple: 0.78×
• Total profit: $-10,406
• Equity at exit: $25,348

10-year hold

• IRR: 3.8%
• Equity multiple: 1.27×
• Total profit: $13,032
• Equity at exit: $14,698

Cash invested: $47,600 (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 56572

• Home prices YoY: -14.1%
• Active inventory: 175
• Price-to-rent: 7.9×

Monthly cashflow live

• Estimated rent: $1,787 medium
• Mortgage (P&I): −$891
• Tax from tax record: −$181 /mo · $2,168/yr
• Insurance: −$71
• HOA: −$0
• Vacancy / Maint / Mgmt: −$375
• Net cashflow: $269

Break-even live

Break-even rent $1,447

Max offer price $170,000

Occupancy floor 80%

Sensitivity live

Price	-10% $365	-5% $317	+0% $269	+5% $221	+10% $173
Rent	-10% $128	-5% $198	+0% $269	+5% $340	+10% $410
Rate	-1.0pp $355	-0.5pp $312	base $269	+0.5pp $225	+1.0pp $180

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: $42,500
• Closing costs: $5,100
• Reserves months: —
• Total cash needed: —

Listing history 7 events

1. 2026-06-12
   statusdays on market $170,000 Pending 9 DOM
2. 2026-06-09
   days on market $170,000 Active 7 DOM
3. 2026-06-08
   days on market $170,000 Active 6 DOM
4. 2026-06-07
   days on market $170,000 Active 5 DOM
5. 2026-06-07
   days on market $170,000 Active 4 DOM
6. 2026-06-03
   remarks 263-char remark
7. 2026-06-03
   listed $170,000 Active 1 DOM

ⓘ 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: $2,168 · $181/mo
• Projected year-2 tax: $2,168 · $181/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 7/10 Severe 77% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥96°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,448
• − Mortgage interest: −$9,523
• − Property taxes: −$2,168
• − Insurance: −$850
• − Repairs & maintenance: −$1,716
• − Management: −$1,716
• − Depreciation: −$4,945
• Taxable income: $531
• Est. tax owed @ 24.0%: −$127
• After-tax cash flow: $3,101/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: Pelican Rapids Public School District
• NCES district ID: 2728170
• Math proficiency: 45% ▼ -11.00%
• Reading proficiency: 54% ▼ -3.00%
• Median HH income: $51,933
• Composite: 42.52/100
• National rank: #3203
• State rank: #123 of 301 in MN

Livability — Pelican Rapids

• Score: 78/100
• State rank: #114
• US rank: #2581

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: Pelican Rapids, MN
• Population (ZIP): 5,900

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (78%)
• Race & ethnicity: White 78% Hispanic / Latino 13% Two or more races 8% Black 4%
• Hispanic origin (detail): Mexican 9% Puerto Rican 1%
• Common ancestry: Portuguese 30% Scottish 2% Romanian 2%
• Foreign-born: 9% · Canada
• Languages at home: 87% English-only · Spanish 7% Russian/Polish/Slavic 1% German/W. Germanic 0%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -37.55%
• Current HPI: 229.1081
• 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

1 event — show timeline

• 2026-06-02 Listed $170,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+9.5%/yr

Latest (2025): $2,168 · +108.3% YoY. Source: county tax records.