702 3rd Ave · Mountain Lake, MN 56159

$89,000

3 bd · 1.0 ba · 854 sqft · SingleFamily public records · 22 Days on market

Built 1912 4,791 sqft lot

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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 +25.1/30.0
• DSCR +8.2/10.0
• ARV discount +7.5/15.0
• 1% rule +6.3/10.0
• Appreciation +5.1/10.0
• Schools +3.9/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

Affordable and full of potential! This charming 3-bedroom home offers several important updates already completed, including newer flooring, an updated bathroom with stylish tile detail, and newer furnace and central A/C for added comfort and peace of mind. A single detached garage provides convenient storage and parking, while the attractive $89,000 price point makes this an excellent opportunity for first-time buyers, investors, or anyone looking for an affordable place to call home.

Key facts

• Newer flooring
• Newer furnace
• Central a c

Tags

• NEWER FLOORING
• UPDATED BATHROOM
• NEWER FURNACE
• CENTRAL A C
• SINGLE DETACHED GARAGE

Property features AI

Exterior

• Parking: Detached or attached 1-car garage (14 x 20, 8-ft door)
• Utilities: City water; City sewer; Natural gas
• Home design: Residential property; Two levels; Entry level with main living on the main floor
• Construction: Block foundation; Foundation dimensions 26 x 26; Built area includes 1,014 above-grade finished area and 276 below-grade area
• Exterior features: Wood exterior

Interior

• Bedrooms: 3 bedrooms
• Bathrooms: 1 full bathroom
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Partial basement; Main floor full bathroom

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $89k.

Deal economics

• At list price, monthly cash flow is $196 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $89k).
• Recommended offer: $88k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 74/100 on livability (#226 in MN, #4,819 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Mountain Lake Public Schools (rural): math 46% / reading 46% proficiency, ranked #172 of 301 in MN (top 57%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 19 active listings in the ZIP; 29 units permitted in Cottonwood County in 2024 (15 in 5+ unit buildings).

Forward outlook

• In year one you build about $737 of equity ($615 loan paydown + $122 appreciation (0.1% local appreciation)).
• Cottonwood County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $25k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 22 days — a 2% lower offer ($88k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $13k; list at $89k implies a 601% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1912 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $87,665 (1.5% below list)

Questions for the listing agent

1. Built in 1912 — 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. Schools are B-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?
4. 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.
5. 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.
6. 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: 1.13% ✓
• Cap rate: 8.94%
• Cash-on-cash: 9.45%
• DSCR: 1.42
• GRM: 7.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

0.14% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 8.7%
• Equity multiple: 1.42×
• Total profit: $10,477
• Equity at exit: $26,455

10-year hold

• IRR: 13.6%
• Equity multiple: 2.51×
• Total profit: $37,565
• Equity at exit: $32,293

Cash invested: $24,920 (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 56159

• Home prices YoY: 0.1%
• Active inventory: 19
• Price-to-rent: 7.4×

Monthly cashflow live

• Estimated rent: $1,003 medium
• Mortgage (P&I): −$467
• Tax from tax record: −$93 /mo · $1,112/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$211
• Net cashflow: $196

Break-even live

Break-even rent $755

Max offer price $89,000

Occupancy floor 75%

Sensitivity live

Price	-10% $247	-5% $221	+0% $196	+5% $171	+10% $146
Rent	-10% $117	-5% $157	+0% $196	+5% $236	+10% $276
Rate	-1.0pp $241	-0.5pp $219	base $196	+0.5pp $173	+1.0pp $150

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: $22,250
• Closing costs: $2,670
• Reserves months: —
• Total cash needed: —

Listing history 19 events

1. 2026-06-21
   days on market $89,000 Active 22 DOM
2. 2026-06-18
   days on market $89,000 Active 20 DOM
3. 2026-06-17
   days on market $89,000 Active 19 DOM
4. 2026-06-16
   days on market $89,000 Active 18 DOM
5. 2026-06-15
   days on market $89,000 Active 17 DOM
6. 2026-06-13
   days on market $89,000 Active 15 DOM
7. 2026-06-12
   days on market $89,000 Active 14 DOM
8. 2026-06-09
   days on market $89,000 Active 11 DOM
9. 2026-06-08
   days on market $89,000 Active 10 DOM
10. 2026-06-07
    days on market $89,000 Active 9 DOM
11. 2026-06-07
    days on market $89,000 Active 8 DOM
12. 2026-06-04
    days on market $89,000 Active 5 DOM
13. 2026-06-02
    days on market $89,000 Active 4 DOM
14. 2026-06-01
    days on market $89,000 Active 3 DOM
15. 2026-05-31
    days on market $89,000 Active 2 DOM
16. 2026-05-29
    listed $89,000 Active
17. 2011-09-17
    soldstatus $12,700
18. 2011-09-17
    soldstatus $12,700
19. 1993-09-14
    soldstatus $8,000

ⓘ 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: $1,112 · $93/mo
• Projected year-2 tax: $1,112 · $93/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 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥100°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,042
• − Mortgage interest: −$4,985
• − Property taxes: −$1,112
• − Insurance: −$445
• − Repairs & maintenance: −$963
• − Management: −$963
• − Depreciation: −$2,589
• Taxable income: $984
• Est. tax owed @ 24.0%: −$236
• After-tax cash flow: $2,119/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: Mountain Lake Public Schools
• NCES district ID: 2723010
• Math proficiency: 46% ▼ -13.00%
• Reading proficiency: 46% ▼ -11.00%
• Median HH income: $48,212
• Composite: 39.3/100
• National rank: #3994
• State rank: #172 of 301 in MN

Livability — Mountain Lake

• Score: 74/100
• State rank: #226
• US rank: #4819

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mountain Lake, MN
• City population: 2,520
• Population (ZIP): 2,520

Population outlook (Cottonwood County) Hauer SSP2

• Today (2025): 11,130 people
• By 2030: 10,916 · -1.9%
• By 2040: 10,467 · -6.0%
• By 2050: 10,136 · -8.9%
• By 2075: 10,080 · -9.4%
• By 2100: 10,091 · -9.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Hispanic / Latino 14% Asian 10% Two or more races 7% Native American 1%
• Hispanic origin (detail): Mexican 6% Dominican 2%
• Common ancestry: Portuguese 10% Iranian 2% Scotch-Irish 1%
• Foreign-born: 10% · Canada, Dominican Republic
• Languages at home: 84% English-only · Spanish 7% Other Asian/Pacific 6% German/W. Germanic 1%

Political lean MEDSL · Cottonwood

• 2024 margin: Solid R (+41.1) · D 28.6% · R 69.7% · Other 1.7%
• 2008→2024 swing: -34.5pp toward R · 2008: -6.6pp · 2024: -41.1pp
• All cycles: 2024: R+41.1 2020: R+38.2 2016: R+35.1 2012: R+15.1 2008: R+6.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.14%
• Current HPI: 252.1125
• 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

+1012.5% since first listed

4 events — show timeline

• 2026-05-29 Listed $89,000 NORTHSTARMLS as Distributed by MLS Grid
• 2011-09-17 Sold (Public Records) $12,700 Public Records
• 2011-09-17 Sold (Public Records) $12,700 Public Records
• 1993-09-14 Sold (Public Records) $8,000 Public Records

Property tax history

+22.4%/yr

Latest (2025): $1,112 · +33.3% YoY. Source: county tax records.