532 2nd Ave SW · Perham, MN 56573

$270,000

3 bd · 2.0 ba · 1,184 sqft · SingleFamily public records · 14 Days on market

Built 1948 7,492 sqft lot

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Why this score? — see what drove the D 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 +14.3/30.0
• ARV discount +7.5/15.0
• DSCR +4.4/10.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• 1% rule +3.2/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Looking for a starter home and small town living? Check out this 1-1/2 story home. The main level of this home features 1-bedroom, a sizable living room, dining room and kitchen. Second floor has 2-bedrooms and full bath. The lot is 50 by 150 for a lot of space and the 1-car detached garage.

Key facts

• 7,492 sq ft lot
• Garage
• Built 1948

Property features AI

Exterior

• Parking: 1-car garage (13 x 19)
• Utilities: City water; City sewer; Natural gas
• Home design: Residential property; One-and-a-half story; Main entry on main level
• Construction: Wood foundation; Foundation area approximately 616; Foundation dimensions 22 x 28
• Exterior features: Vinyl exterior; Patio

Interior

• Kitchen: Kitchen on main level
• Bedrooms: 4 bedrooms (multiple bedrooms on upper level)
• Bathrooms: 2 full bathrooms
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished basement; Patio
• Laundry & utility: Utility room

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $270k.

Deal economics

• At list price, monthly cash flow is $50 ($595/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $223k (17.6% below list).
• Recommended offer: $223k (17.6% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 92 active listings in the ZIP; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 17y ago; this cycle's ask is 286% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $60k; list at $270k implies a 346% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $222,612 (17.6% below list)

Questions for the listing agent

1. Built in 1948 — 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. 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?
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: 0.82% ✗
• Cap rate: 6.51%
• Cash-on-cash: 0.79%
• DSCR: 1.04
• GRM: 10.1

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: -15.1%
• Equity multiple: 0.46×
• Total profit: $-40,658
• Equity at exit: $40,258

10-year hold

• IRR: -6.5%
• Equity multiple: 0.58×
• Total profit: $-31,595
• Equity at exit: $23,345

Cash invested: $75,600 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 92
• Price-to-rent: 10.1×

Monthly cashflow live

• Estimated rent: $2,226 medium
• Mortgage (P&I): −$1,416
• Tax from tax record: −$181 /mo · $2,168/yr
• Insurance: −$112
• HOA: −$0
• Vacancy / Maint / Mgmt: −$467
• Net cashflow: $50

Break-even live

Break-even rent $2,163

Max offer price $270,000

Occupancy floor 93%

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: $67,500
• Closing costs: $8,100
• Reserves months: —
• Total cash needed: —

Listing history 14 events

1. 2026-06-18
   days on market $270,000 Active 14 DOM
2. 2026-06-17
   days on market $270,000 Active 13 DOM
3. 2026-06-16
   days on market $270,000 Active 12 DOM
4. 2026-06-15
   days on market $270,000 Active 11 DOM
5. 2026-06-13
   days on market $270,000 Active 9 DOM
6. 2026-06-12
   days on market $270,000 Active 8 DOM
7. 2026-06-09
   days on market $270,000 Active 5 DOM
8. 2026-06-08
   days on market $270,000 Active 4 DOM
9. 2026-06-07
   days on market $270,000 Active 3 DOM
10. 2026-06-07
    statusdays on market $270,000 Active 2 DOM
11. 2026-06-04
    days on market $270,000 Coming Soon 3 DOM
12. 2026-06-02
    days on market $270,000 Coming Soon 2 DOM
13. 2026-05-31
    remarks 687-char remark
14. 2026-05-31
    listed $270,000 Coming Soon 1 DOM

ⓘ 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: $2,168 · $181/mo
• Projected year-2 tax: $2,596 · $216/mo
• Expected delta: +$428/yr (+$36/mo · 19.7%)

ⓘ 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 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $26,713
• − Mortgage interest: −$15,124
• − Property taxes: −$2,168
• − Insurance: −$1,350
• − Repairs & maintenance: −$2,137
• − Management: −$2,137
• − Depreciation: −$7,855
• Taxable loss: −$4,057
• Est. tax savings @ 24.0%: +$974
• After-tax cash flow: $1,568/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: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Perham, MN
• Population (ZIP): 6,868

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.48%
• Current HPI: 225.7071
• 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

+214.3% since first listed

7 events — show timeline

• 2026-05-31 Coming Soon $270,000 NORTHSTARMLS as Distributed by MLS Grid
• 2023-08-15 Sold (Public Records) $60,500 Public Records
• 2023-08-11 Sold (MLS) $60,500 NORTHSTARMLS as Distributed by MLS Grid
• 2023-05-18 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2009-04-28 Sold (Public Records) $85,900 Public Records
• 2009-04-24 Sold (MLS) $85,900 NORTHSTARMLS as Distributed by MLS Grid
• 2009-02-01 Listed $85,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+15.0%/yr

Latest (2025): $2,168 · +10.2% YoY. Source: county tax records.