209 8th St E

Hastings, MN 55033

$211,500F

2 bd · 2.0 ba · 1,296 sqft · Built 1855 · SingleFamily · Active · 51 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,549/mo
• Mortgage (P&I): −$1,109
• Tax + insurance: −$264
• HOA: −$0
• Vac / Maint / Mgmt: −$325
• Net cashflow: $-150/mo
• Annual: $-1,796/yr
• Cap rate: 5.44%
• Cash-on-cash: -3.03%
• DSCR: 0.87
• 1% rule: 0.73%
• Cash to close: $59,220

Investor read

• This is a 2-bed/2.0-bath single-family listed at $212k.
• At list price, monthly cash flow is $-150 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $185k (12.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $155k (26.8% below list).
• It's been on market 51 days — a 3% lower offer ($205k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $155k (26.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#176 in MN, #3,817 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F.
• Hastings Public School District (town): math 43% / reading 50% proficiency, ranked #136 of 301 in MN (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Kennedy Elementary (math 62% / reading 52%, grade C+, #265 of 857 statewide, top 35%, 450 students, 35% FRL); Hastings Middle School (math 33% / reading 48%, grade F, #144 of 258 statewide, top 56%, 1,210 students, 33% FRL); Hastings High School (math 46% / reading 67%, grade C, #77 of 471 statewide, top 17%, 1,353 students, 24% FRL).
• Watch-outs: built in 1855 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 180 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 9 sale attempts since 33y ago; this cycle's ask has dropped $14k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Cap rate 5.4% vs local median 2.9% in Hastings — 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.
• This rent is only 18% of the median local income ($104k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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 51 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
• Built in 1855 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.