Single Story 3DR 2BA - 1672-206 Plan

North Mankato, MN 56003

$141,900D

3 bd · 2.0 ba · 1,088 sqft · Built — · Manufactured · Active · 957 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,813/mo
• Mortgage (P&I): −$744
• Tax + insurance: −$236
• HOA: −$496
• Vac / Maint / Mgmt: −$381
• Net cashflow: $-44/mo
• Annual: $-530/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.33%
• DSCR: 0.94
• 1% rule: 1.28%
• Cash to close: $39,732

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $142k.
• At list price, monthly cash flow is $-44 ($-530/yr) — negative.
• To cash-flow at today's rent, offer at most $136k (4.5% below list).
• Meets the 1% rule at list price ($2k rent vs $142k).
• It's been on market 957 days — a 12% lower offer ($125k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $981 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#71 in MN, #1,734 nationally) — a professional / high-income tenant draw. Strengths: housing A+, crime A, employment A-; Watch: amenities F, commute F.
• Mankato Public School District (urban): math 48% / reading 56% proficiency, ranked #98 of 301 in MN (top 33%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hoover Elementary (math 55% / reading 56%, grade C, #308 of 857 statewide, top 36%, 503 students, 30% FRL); Dakota Meadows Middle School (math 36% / reading 59%, grade C-, #93 of 258 statewide, top 37%, 878 students, 34% FRL); Mankato West Senior High (math 52% / reading 67%, grade C+, #46 of 471 statewide, top 11%, 1,223 students, 32% FRL) — zoned schools at 32% FRL track the district average.
• Watch-outs: HOA is 27% of rent.
• Market conditions: 173 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 109 units permitted in Nicollet County in 2024 (47 in 5+ unit buildings).
• Cap rate 5.9% vs local median 3.4% in North Mankato — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

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 957 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• Schools are A-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?
• 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.