181 Little Canada Rd E #334

Little Canada, MN 55117

$139,900D

2 bd · 1.0 ba · 943 sqft · Built 1971 · Condo · Active · 108 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,520/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$178
• HOA: −$483
• Vac / Maint / Mgmt: −$319
• Net cashflow: $-193/mo
• Annual: $-2,321/yr
• Cap rate: 4.63%
• Cash-on-cash: -5.92%
• DSCR: 0.74
• 1% rule: 1.09%
• Cash to close: $39,172

Investor read

• This is a 2-bed/1.0-bath condo listed at $140k.
• At list price, monthly cash flow is $-193 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $106k (24.4% below list).
• Meets the 1% rule at list price ($2k rent vs $140k).
• It's been on market 108 days — a 9% lower offer ($127k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $106k (24.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $967 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#109 in MN, #2,510 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, crime A-; Watch: amenities F.
• Roseville Public School District (suburban): math 37% / reading 53% proficiency, ranked #170 of 301 in MN (top 56%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Parkview Center School (math 52% / reading 69%, grade B-, #203 of 857 statewide, top 24%, 717 students, 33% FRL); Roseville Area Middle (math 24% / reading 48%, grade F, #170 of 258 statewide, top 66%, 828 students, 58% FRL); Roseville Area Senior High (math 42% / reading 69%, grade C, #80 of 471 statewide, top 17%, 2,327 students, 48% FRL).
• Watch-outs: HOA is 32% of rent.
• Market conditions: Rents rising (+3.6%/yr); 175 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); 1,202 units permitted in Ramsey County in 2024 (880 in 5+ unit buildings).
• Ramsey County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 19y ago; this cycle's ask has dropped $9k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 4.6% vs local median 3.6% in Little Canada — 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 108 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1971 — 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.
• 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?