525 Nelson St NE · Warroad, MN 56763

$805,000

36 bd · 25.2 ba · 19,140 sqft · MultiFamily · 311 Days on market

Built 1983 Fair condition 0.61 ac lot ↓ 9% since listing

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Why this score? — see what drove the A- 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
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.1/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 18 units. estimate disagrees with records

Listing remarks MLS

This 18-unit apartment building has a unit mix of 1 to 3 bedroom units, with rents ranging from $600-$800. All units are above grade, with either patio or balcony. Owner pays boiler heat, electric metered to tenants. There would also be value in implementing a Ratio Utility Billing System (RUBS) program to absorb heat cost. Detached garage has 8 stalls. Call today for more info.

Key facts

• 0.61 acre lot
• Built 1983
• Listed 310 days

What this means for you Summary

Snapshot

• This is a 18 × 2-bed/1.4-bath units multifamily listed at $805k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $9k ($107k/yr) — positive. Per door: $494/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($18k rent vs $805k).
• Recommended offer: $708k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 75/100 on livability (#201 in MN, #4,214 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Warroad Public School District (rural): math 42% / reading 53% proficiency, ranked #153 of 301 in MN (top 51%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 39 active listings in the ZIP; 49 units permitted in Roseau County in 2024 (15 in 5+ unit buildings).

Forward outlook

• In year one you build about $86k of equity ($6k loan paydown + $80k appreciation (10.0% local appreciation)).
• Roseau County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $225k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$138k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 311 days — a 12% lower offer ($708k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $708,400 (12.0% below list)

Questions for the listing agent

1. It's been on market 311 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. 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?
8. 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.
9. 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.
10. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 2.27% ✓
• Cap rate: 19.55%
• Cash-on-cash: 47.36%
• DSCR: 3.11
• GRM: 3.7

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 61.4%
• Equity multiple: 5.46×
• Total profit: $1,005,254
• Equity at exit: $725,208

10-year hold

• IRR: 54.9%
• Equity multiple: 12.16×
• Total profit: $2,515,322
• Equity at exit: $1,563,938

Cash invested: $225,400 (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 56763

• Home prices YoY: 6.3%
• Active inventory: 39
• Price-to-rent: 66.0×

Monthly cashflow live

• Estimated rent: $18,302 medium
• Mortgage (P&I): −$4,222
• Tax est. 1.5%: −$1,006 /mo · $12,075/yr
• Insurance: −$335
• HOA: −$0
• Vacancy / Maint / Mgmt: −$3,843
• Net cashflow: $8,895

Break-even live

Break-even rent $7,042

Max offer price $805,000

Occupancy floor 46%

18-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 18× units	2	1.4	$18,306
Total (18 units)			$18,302

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: $201,250
• Closing costs: $24,150
• Reserves months: —
• Total cash needed: —

Listing history 5 events

1. 2026-06-01
   days on market $805,000 Active 311 DOM
2. 2026-05-31
   days on market $805,000 Active 310 DOM
3. 2026-05-31
   days on market $805,000 Active 309 DOM
4. 2026-03-19
   price $805,000 382-char remark

   Show marketing remark (382 chars)

   This 18-unit apartment building has a unit mix of 1 to 3 bedroom units, with rents ranging from $600-$800. All units are above grade, with either patio or balcony. Owner pays boiler heat, electric metered to tenants. There would also be value in implementing a Ratio Utility Billing System (RUBS) program to absorb heat cost. Detached garage has 8 stalls. Call today for more info.

5. 2025-07-25
   listed $885,000 Active 382-char remark

   Show marketing remark (382 chars)

   This 18-unit apartment building has a unit mix of 1 to 3 bedroom units, with rents ranging from $600-$800. All units are above grade, with either patio or balcony. Owner pays boiler heat, electric metered to tenants. There would also be value in implementing a Ratio Utility Billing System (RUBS) program to absorb heat cost. Detached garage has 8 stalls. Call today for more info.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (shaded) · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥92°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $219,624
• − Mortgage interest: −$45,093
• − Property taxes: −$12,075
• − Insurance: −$4,025
• − Repairs & maintenance: −$17,570
• − Management: −$17,570
• − Depreciation: −$23,418
• Taxable income: $99,873
• Est. tax owed @ 24.0%: −$23,970
• After-tax cash flow: $82,775/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.

Condition & rehab AI · 12 photos

Fair 45/100 Moderate rehab

This 18-unit apartment building requires moderate renovations to update the kitchens and bathrooms, replace carpeting, and repair/replace windows. These updates would significantly increase its resale and rental value.

Repairs flagged

• Moderate kitchen cabinets — dated and worn
• Moderate bathroom fixtures — dated and worn
• Minor HVAC system — no visible damage

Value-add opportunities

• Both update kitchen cabinets and fixtures — modernizing the kitchen would appeal to buyers and renters
• Both replace carpeting with hardwood or tile — hardwood or tile flooring would increase the home's value and appeal
• Both repair/replace windows — new windows would improve energy efficiency and curb appeal

Renovation cost estimate screening

Repair item	Severity	Est. cost
kitchen cabinets · dated and worn	Moderate	$3,000–15,000
bathroom fixtures · dated and worn	Moderate	$3,000–15,000
HVAC system · no visible damage	Minor	$500–3,000
Total estimated repair cost · 3 items		$6,500–33,000

Value-add ROI direction

• Both update kitchen cabinets and fixtures — modernizing the kitchen would appeal to buyers and renters ↑
• Both replace carpeting with hardwood or tile — hardwood or tile flooring would increase the home's value and appeal ↑
• Both repair/replace windows — new windows would improve energy efficiency and curb appeal ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Warroad Public School District
• NCES district ID: 2741850
• Math proficiency: 42% ▼ -7.00%
• Reading proficiency: 53% ▼ -14.00%
• Median HH income: $49,106
• Composite: 40.59/100
• National rank: #3697
• State rank: #153 of 301 in MN

Livability — Warroad

• Score: 75/100
• State rank: #201
• US rank: #4214

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Warroad, MN
• Population (ZIP): 5,161

Population outlook (Roseau County) Hauer SSP2

• Today (2025): 15,709 people
• By 2030: 15,559 · -1.0%
• By 2040: 15,168 · -3.4%
• By 2050: 14,539 · -7.4%
• By 2075: 13,430 · -14.5%
• By 2100: 11,713 · -25.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Asian 6% Two or more races 4% Native American 2% Hispanic / Latino 1%
• Common ancestry: Portuguese 24% Romanian 7% Lithuanian 3%
• Foreign-born: 5% · Canada, China, South Korea
• Languages at home: 94% English-only · Other Asian/Pacific 4% Spanish 1% Russian/Polish/Slavic 1%

Political lean MEDSL · Roseau

• 2024 margin: Solid R (+49.3) · D 24.7% · R 74.0% · Other 1.3%
• 2008→2024 swing: -31.9pp toward R · 2008: -17.4pp · 2024: -49.3pp
• All cycles: 2024: R+49.3 2020: R+46.0 2016: R+46.3 2012: R+22.3 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 14.87%
• Current HPI: 250.7223
• 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

-9.0% since first listed

2 events — show timeline

• 2026-03-19 Price Changed $805,000 GFAAR
• 2025-07-25 Listed $885,000 GFAAR