114 1st Avenue Ave · Ormsby, MN 56162

$39,900

1 bd · 1.0 ba · 636 sqft · SingleFamily public records · 128 Days on market

Built 1953 6,098 sqft 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 +6.8/10.0
• Schools +3.4/10.0
• Rent growth +2.5/5.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

This is a one-bedroom house located a block north of downtown Ormsby. Featuring nice front entry, spacious kitchen with oak cabinets and eating area, nice sized living room, one bedroom with double closet and adjoining 3/4 bathroom with step-in shower. Full basement, Goodman forced air LP furnace, central a/c, 100-Amp CB electrical service, water softener, and an LP water heater that is a year old. Home has wood siding, newer thermopane windows throughout most of the house, asphalt shingles, and a 24' x 24' newer garage off the alley that is heated and insulated. This is a modest size house and appliances are available separately. Priced for immediate sale, must see to appreciate!

Key facts

• Double closet
• Oak cabinets
• Eating area

Tags

• SPACIOUS KITCHEN
• OAK CABINETS
• EATING AREA
• LIVING ROOM
• DOUBLE CLOSET
• 3/4 BATHROOM

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $349 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($779 rent vs $40k).
• Recommended offer: $35k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 50/100 on livability (#887 in MN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: schools D+, health & safety D+, amenities F.
• St. James Public School District (town): math 36% / reading 43% proficiency, ranked #226 of 301 in MN (top 75%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 2 active listings in the ZIP; 4 units permitted in Watonwan County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $2k of equity ($276 loan paydown + $1k appreciation (3.6% local appreciation)).
• Watonwan County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.6% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• It's been on market 128 days — a 12% lower offer ($35k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $8k; list at $40k implies a 369% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $35,112 (12.0% below list)

Questions for the listing agent

1. It's been on market 128 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 1.95% ✓
• Cap rate: 16.78%
• Cash-on-cash: 37.46%
• DSCR: 2.67
• GRM: 4.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

3.63% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 44.0%
• Equity multiple: 3.54×
• Total profit: $28,367
• Equity at exit: $19,369

10-year hold

• IRR: 43.2%
• Equity multiple: 7.11×
• Total profit: $68,253
• Equity at exit: $31,011

Cash invested: $11,172 (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 56162

• Home prices YoY: 3.0%
• Active inventory: 2
• Price-to-rent: 4.3×

Monthly cashflow live

• Estimated rent: $779 medium
• Mortgage (P&I): −$209
• Tax from tax record: −$41 /mo · $494/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$164
• Net cashflow: $349

Break-even live

Break-even rent $338

Max offer price $39,900

Occupancy floor 50%

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: $9,975
• Closing costs: $1,197
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2026-06-05
   statusdays on market $39,900 Pending 128 DOM
2. 2026-06-04
   days on market $39,900 Active 127 DOM
3. 2026-06-02
   days on market $39,900 Active 126 DOM
4. 2026-06-01
   days on market $39,900 Active 125 DOM
5. 2026-05-31
   days on market $39,900 Active 124 DOM
6. 2026-05-31
   days on market $39,900 Active 123 DOM
7. 2026-04-20
   price $39,900 689-char remark

   Show marketing remark (689 chars)

   This is a one-bedroom house located a block north of downtown Ormsby. Featuring nice front entry, spacious kitchen with oak cabinets and eating area, nice sized living room, one bedroom with double closet and adjoining 3/4 bathroom with step-in shower. Full basement, Goodman forced air LP furnace, central a/c, 100-Amp CB electrical service, water softener, and an LP water heater that is a year old. Home has wood siding, newer thermopane windows throughout most of the house, asphalt shingles, and a 24' x 24' newer garage off the alley that is heated and insulated. This is a modest size house and appliances are available separately. Priced for immediate sale, must see to appreciate!

8. 2026-01-26
   listed $48,500 Active 689-char remark

   Show marketing remark (689 chars)

   This is a one-bedroom house located a block north of downtown Ormsby. Featuring nice front entry, spacious kitchen with oak cabinets and eating area, nice sized living room, one bedroom with double closet and adjoining 3/4 bathroom with step-in shower. Full basement, Goodman forced air LP furnace, central a/c, 100-Amp CB electrical service, water softener, and an LP water heater that is a year old. Home has wood siding, newer thermopane windows throughout most of the house, asphalt shingles, and a 24' x 24' newer garage off the alley that is heated and insulated. This is a modest size house and appliances are available separately. Priced for immediate sale, must see to appreciate!

9. 1999-09-28
   soldstatus $8,500
10. 1994-11-14
    soldstatus $5,000

ⓘ 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: $494 · $41/mo
• Projected year-2 tax: $494 · $41/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 (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $9,354
• − Mortgage interest: −$2,235
• − Property taxes: −$494
• − Insurance: −$200
• − Repairs & maintenance: −$748
• − Management: −$748
• − Depreciation: −$1,161
• Taxable income: $3,768
• Est. tax owed @ 24.0%: −$904
• After-tax cash flow: $3,281/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: St. James Public School District
• NCES district ID: 2733600
• Math proficiency: 36% ▼ -20.00%
• Reading proficiency: 43% ▼ -14.00%
• Median HH income: $48,256
• Composite: 33.89/100
• National rank: #5345
• State rank: #226 of 301 in MN

Livability — Ormsby

• Score: 50/100
• State rank: #887
• US rank: #25588

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ormsby, MN
• Population (ZIP): 263

Population outlook (Watonwan County) Hauer SSP2

• Today (2025): 10,579 people
• By 2030: 10,354 · -2.1%
• By 2040: 9,923 · -6.2%
• By 2050: 9,558 · -9.7%
• By 2075: 9,236 · -12.7%
• By 2100: 8,812 · -16.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (100%)
• Race & ethnicity: White 100%
• Common ancestry: Portuguese 34% Romanian 2% Slovak 1%
• Languages at home: 99% English-only · German/W. Germanic 1%

Political lean MEDSL · Watonwan

• 2024 margin: Strong R (+27.8) · D 35.1% · R 62.9% · Other 2.0%
• 2008→2024 swing: -28.5pp toward R · 2008: 0.7pp · 2024: -27.8pp
• All cycles: 2024: R+27.8 2020: R+21.5 2016: R+19.2 2012: R+0.5 2008: D+0.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 3.63%
• Current HPI: 123.4598
• 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

+698.0% since first listed

4 events — show timeline

• 2026-04-20 Price Changed $39,900 RASM
• 2026-01-26 Listed $48,500 RASM
• 1999-09-28 Sold (Public Records) $8,500 Public Records
• 1994-11-14 Sold (Public Records) $5,000 Public Records

Property tax history

+1.7%/yr

Latest (2025): $494 · +11.3% YoY. Source: county tax records.