405 S 4th St · Milan, MN 56262

$60,000

3 bd · 2.0 ba · 1,050 sqft · SingleFamily · 16 Days on market

Built 1928 0.25 ac lot

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Why this score? — see what drove the B 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Appreciation +5.0/10.0
• Schools +3.7/10.0
• Livability +3.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

This property has character with 3 bedrooms and 2 full bathrooms. Hardwood floors, natural light, main floor laundry, lots of storage space. This property sits on a corner lot with lots of yard space and a detached garage. This property has lots of potential!

Key facts

• 0.25 acre lot
• 2 garage spots
• Built 1928

Property features AI

Finance

• Financial info: Annual tax information available

Exterior

• Parking: Detached or attached 2-car garage (2 garage spaces)
• Utilities: City water (connected); City sewer (connected); Electric with circuit breakers; Propane fuel
• Home design: Residential property; Two levels
• Construction: Block construction; Block foundation; Asphalt roof; Foundation area ~616
• Exterior features: Vinyl exterior; Chain link fencing; Lot approximately 0.254 acres (dimensions ~100 x 111)

Interior

• Kitchen: Kitchen (9 x 10 on main level)
• Bedrooms: 3 bedrooms (all on upper level except main-level rooms noted in room list); Bedroom sizes include 12 x 8, 8 x 11, and 8 x 7 (upper level)
• Bathrooms: Main floor full bath; Upper-level 3/4 bath; Additional bath areas listed (16 x 6 main; 5 x 7 upper)
• Heating & cooling: Forced air heating; Window air conditioning units
• Interior features: Informal dining area; Full basement
• Laundry & utility: Laundry on main level

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $60k.

Deal economics

• At list price, monthly cash flow is $415 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $60k).
• Recommended offer: $59k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 60/100 on livability (#769 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety D+, schools F, crime D-.
• Lac Qui Parle Valley School District (rural): math 44% / reading 44% proficiency, ranked #193 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 5 active listings in the ZIP; 13 units permitted in Chippewa County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $2k of equity ($415 loan paydown + $2k appreciation (3.0% local appreciation)).
• Chippewa County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 16 days — a 2% lower offer ($59k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $59,100 (1.5% below list)

Questions for the listing agent

1. Built in 1928 — 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. 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?
5. 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.
6. 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.
7. 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: 1.75% ✓
• Cap rate: 14.60%
• Cash-on-cash: 29.66%
• DSCR: 2.32
• GRM: 4.8

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: 35.5%
• Equity multiple: 3.01×
• Total profit: $33,694
• Equity at exit: $26,979

10-year hold

• IRR: 35.7%
• Equity multiple: 5.93×
• Total profit: $82,908
• Equity at exit: $41,577

Cash invested: $16,800 (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 56262

• Active inventory: 5
• Price-to-rent: 4.8×

Monthly cashflow live

• Estimated rent: $1,050 medium
• Mortgage (P&I): −$315
• Tax from tax record: −$75 /mo · $896/yr
• Insurance: −$25
• HOA: −$0
• Vacancy / Maint / Mgmt: −$221
• Net cashflow: $415

Break-even live

Break-even rent $524

Max offer price $60,000

Occupancy floor 55%

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: $15,000
• Closing costs: $1,800
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-05-11
   listed $60,000 Active 262-char remark
2. 2026-04-28
   historical $60,000 262-char remark

ⓘ 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: $896 · $75/mo
• Projected year-2 tax: $896 · $75/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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 6 d/yr ≥100°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,602
• − Mortgage interest: −$3,361
• − Property taxes: −$896
• − Insurance: −$300
• − Repairs & maintenance: −$1,008
• − Management: −$1,008
• − Depreciation: −$1,745
• Taxable income: $4,283
• Est. tax owed @ 24.0%: −$1,028
• After-tax cash flow: $3,956/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: Lac Qui Parle Valley School District
• NCES district ID: 2700125
• Math proficiency: 44% ▼ -14.00%
• Reading proficiency: 44% ▼ -9.00%
• Median HH income: $44,760
• Composite: 37.32/100
• National rank: #4444
• State rank: #193 of 301 in MN

Livability — Milan

• Score: 60/100
• State rank: #769
• US rank: #19265

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: Milan, MN
• Population (ZIP): 799

Population outlook (Chippewa County) Hauer SSP2

• Today (2025): 11,593 people
• By 2030: 11,294 · -2.6%
• By 2040: 10,715 · -7.6%
• By 2050: 10,229 · -11.8%
• By 2075: 9,600 · -17.2%
• By 2100: 8,500 · -26.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.65)
• Race & ethnicity: White 58% Pacific Islander 26% Hispanic / Latino 15% Two or more races 4%
• Hispanic origin (detail): Mexican 12%
• Common ancestry: Portuguese 36% Italian 4% Scottish 2%
• Foreign-born: 23% · Canada
• Languages at home: 66% English-only · Other Asian/Pacific 23% Spanish 10%

Political lean MEDSL · Chippewa

• 2024 margin: Solid R (+34.1) · D 32.2% · R 66.3% · Other 1.6%
• 2008→2024 swing: -40.0pp toward R · 2008: 5.9pp · 2024: -34.1pp
• All cycles: 2024: R+34.1 2020: R+30.6 2016: R+28.9 2012: D+1.9 2008: D+5.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• 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

+0.0% since first listed

4 events — show timeline

• 2026-06-15 Sold (MLS) $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-11 Listed $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-28 Coming Soon $60,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+8.6%/yr

Latest (2026): $896 · -0.9% YoY. Source: county tax records.