306 Quadna Mountain Rd

Hill City, MN 55748

$130,000D-

1 bd · 1.0 ba · 632 sqft · Built 1973 · Townhouse · Active · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,081/mo
• Mortgage (P&I): −$682
• Tax + insurance: −$106
• HOA: −$326
• Vac / Maint / Mgmt: −$227
• Net cashflow: $-260/mo
• Annual: $-3,123/yr
• Cap rate: 3.89%
• Cash-on-cash: -8.58%
• DSCR: 0.62
• 1% rule: 0.83%
• Cash to close: $36,400

Investor read

• This is a 1-bed/1.0-bath townhouse listed at $130k. Condition is rated fair.
• At list price, monthly cash flow is $-260 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $84k (35.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (16.9% below list).
• It's been on market 21 days — a 2% lower offer ($128k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $84k (35.4% below list) — sets the bar for cash-flow.
• In year one you build about $5k of equity ($899 loan paydown + $4k appreciation (3.2% local appreciation)).
• Location reads 69/100 on livability (#360 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D+, amenities F, commute F.
• Hill City Public School District (rural): math 35% / reading 45% proficiency, ranked #366 of 467 in MN (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: HOA is 30% of rent.
• Market conditions: 26 active listings in the ZIP; 134 units permitted in Aitkin County in 2024 (0 in 5+ unit buildings).
• Aitkin County population projected at -25% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 4 sale attempts since 10y ago; this cycle's ask is 172% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $38k; list at $130k implies a 242% gain — meaningful room to come down on a strong offer.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1973 — 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: Wooden deck — Severe wear and tear
• Major: Kitchen — No photos, but implied by listing