202 2nd St NW · Climax, MN 56523

$131,000

4 bd · 1.0 ba · 1,584 sqft · SingleFamily public records · 134 Days on market

Built 1920 8,750 sqft lot Est $131k · at est.

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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 +22.5/30.0
• ARV discount +7.7/15.0
• DSCR +7.2/10.0
• Appreciation +7.1/10.0
• 1% rule +5.3/10.0
• Schools +3.6/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

4 bedroom home located on a corner lot & has lots of updates! There are 3 bedrooms & a walk-in closet upstairs. 4th bedroom is on the main floor. Home has new siding, several new windows, laminate flooring in the living room & a new 26x26 insulated, sheeted, & heated garage! Home has gas forced air heat with electric baseboard upstairs. 200 amp electrical panel. Also, has a large wrap around deck!

Key facts

• Quiet corner lot
• Laminate flooring
• Walk-in closet

Tags

• QUIET CORNER LOT
• WALK-IN CLOSET
• REFINISHED BATHROOM
• MAINTENANCE FREE SIDING
• LAMINATE FLOORING
• FINISHED GARAGE

What this means for you Summary

Snapshot

• This is a 4-bed/1.0-bath single-family listed at $131k.

Deal economics

• At list price, monthly cash flow is $219 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $131k).
• Recommended offer: $115k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 65/100 on livability (#533 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, crime D+, health & safety D+.
• Climax-Shelly Public Schools (rural): math 30% / reading 50% proficiency, ranked #362 of 467 in MN (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Climax Elementary (math 44% / reading 54%, grade D, #423 of 857 statewide, top 55%, 96 students, 66% FRL); Climax Secondary (math 5% / reading 34%, grade F, #421 of 471 statewide, top 90%, 93 students, 56% FRL).
• Market conditions: 2 active listings in the ZIP; 42 units permitted in Polk County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $6k of equity ($906 loan paydown + $6k appreciation (4.2% local appreciation)).
• Polk County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (4.2% appreciation + 3.0% rent growth), your $37k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 134 days — a 12% lower offer ($115k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 10y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $20k; list at $131k implies a 558% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $115,280 (12.0% below list)

Questions for the listing agent

1. It's been on market 134 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 1.03% ✓
• Cap rate: 8.30%
• Cash-on-cash: 7.18%
• DSCR: 1.32
• GRM: 8.1

CMA / ARV

• ARV (on-the-fly): $131,472
• Comps found: 3

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
202 2nd St NW	0.00mi	4/1.0	1,584 (0%)	0mo	$131,000	$83	100
302 Centennial St	0.18mi	4/2.0	1,716 (+8%)	14mo	$139,900	$82	62
308 1st St NW	0.14mi	3/2.0 (-1)	1,368 (-14%)	16mo	$155,000	$113	48

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

4.23% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 17.2%
• Equity multiple: 2.05×
• Total profit: $38,496
• Equity at exit: $68,216

10-year hold

• IRR: 17.8%
• Equity multiple: 3.92×
• Total profit: $107,211
• Equity at exit: $113,030

Cash invested: $36,680 (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 56523

• Home prices YoY: 3.1%
• Active inventory: 2
• Price-to-rent: 8.1×

Monthly cashflow live

• Estimated rent: $1,351 medium
• Mortgage (P&I): −$687
• Tax from tax record: −$106 /mo · $1,274/yr
• Insurance: −$55
• HOA: −$0
• Vacancy / Maint / Mgmt: −$284
• Net cashflow: $219

Break-even live

Break-even rent $1,073

Max offer price $131,000

Occupancy floor 79%

Sensitivity live

Price	-10% $294	-5% $257	+0% $219	+5% $182	+10% $145
Rent	-10% $113	-5% $166	+0% $219	+5% $273	+10% $326
Rate	-1.0pp $285	-0.5pp $253	base $219	+0.5pp $186	+1.0pp $151

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: $32,750
• Closing costs: $3,930
• Reserves months: —
• Total cash needed: —

Listing history 5 events

1. 2026-04-21
   status Pending
2. 2025-12-08
   listed $131,000 Active
3. 2016-06-06
   soldstatus 423-char remark

   Show marketing remark (423 chars)

   4 bedroom home located on a corner lot & has lots of updates! There are 3 bedrooms & a walk-in closet upstairs. 4th bedroom is on the main floor. Home has new siding, several new windows, laminate flooring in the living room & a new 26x26 insulated, sheeted, & heated garage! Home has gas forced air heat with electric baseboard upstairs. 200 amp electrical panel. Also, has a large wrap around deck!

4. 2016-01-10
   listed $89,000 423-char remark

   Show marketing remark (423 chars)

   4 bedroom home located on a corner lot & has lots of updates! There are 3 bedrooms & a walk-in closet upstairs. 4th bedroom is on the main floor. Home has new siding, several new windows, laminate flooring in the living room & a new 26x26 insulated, sheeted, & heated garage! Home has gas forced air heat with electric baseboard upstairs. 200 amp electrical panel. Also, has a large wrap around deck!

5. 2007-11-15
   soldstatus $19,900

ⓘ 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: $1,274 · $106/mo
• Projected year-2 tax: $1,371 · $114/mo
• Expected delta: +$97/yr (+$8/mo · 7.6%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥96°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,210
• − Mortgage interest: −$7,338
• − Property taxes: −$1,274
• − Insurance: −$655
• − Repairs & maintenance: −$1,297
• − Management: −$1,297
• − Depreciation: −$3,811
• Taxable income: $539
• Est. tax owed @ 24.0%: −$129
• After-tax cash flow: $2,504/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: Climax-Shelly Public Schools
• NCES district ID: 2709360
• Math proficiency: 30% ▼ -5.00%
• Reading proficiency: 50% ▬ 0.00%
• Median HH income: $43,700
• Composite: 36.28/100
• National rank: #9411
• State rank: #362 of 467 in MN

Livability — Climax

• Score: 65/100
• State rank: #533
• US rank: #12874

Category grades

Amenities F Commute F Cost of living A+ Crime D+ Employment C- Housing A+ Health & safety D+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Climax, MN
• Population (ZIP): 391

Population outlook (Polk County) Hauer SSP2

• Today (2025): 31,123 people
• By 2030: 30,720 · -1.3%
• By 2040: 29,806 · -4.2%
• By 2050: 29,022 · -6.8%
• By 2075: 27,972 · -10.1%
• By 2100: 26,953 · -13.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 9% Two or more races 5%
• Hispanic origin (detail): Mexican 7% Puerto Rican 2%
• Common ancestry: Portuguese 34% Scottish 9% Lithuanian 5%
• Foreign-born: 4% · Canada
• Languages at home: 97% English-only · Spanish 3%

Political lean MEDSL · Polk

• 2024 margin: Solid R (+33.8) · D 32.3% · R 66.0% · Other 1.7%
• 2008→2024 swing: -38.3pp toward R · 2008: 4.6pp · 2024: -33.8pp
• All cycles: 2024: R+33.8 2020: R+28.4 2016: R+29.0 2012: R+5.8 2008: D+4.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.23%
• Current HPI: 141.9789
• 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

+558.3% since first listed

5 events — show timeline

• 2026-04-21 Pending — GFAAR
• 2025-12-08 Listed $131,000 GFAAR
• 2016-06-06 Sold (MLS) — GFAAR
• 2016-01-10 Listed $89,000 GFAAR
• 2007-11-15 Sold (Public Records) $19,900 Public Records

Property tax history

+2.5%/yr

Latest (2026): $1,274 · -5.9% YoY. Source: county tax records.