109 5th Ave SE · Pipestone, MN 56164

$109,000

4 bd · 2.0 ba · 1,682 sqft · SingleFamily · 260 Days on market

Built 1920 10,454 sqft lot $65/sqft · 32% below area Est $159k · 32% under

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Why this score? — see what drove the C+ 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 +23.4/30.0
• ARV discount +15.0/15.0
• DSCR +7.5/10.0
• 1% rule +5.2/10.0
• Livability +3.6/5.0
• Schools +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

1.5-Story with Major Exterior Updates – Ready for Interior Updates Extensive exterior improvements have already been completed, including steel siding (2021), vinyl windows in house & garage (2023), shingles on house & tin on garage (2018), new 200-amp panel (2023), compliant PVC city sewer line (2023), plus new cement driveway & sidewalk. The double garage offers updated electrical, a 50-amp exterior plug, and a 25x50 gravel parking pad for additional parking. Interior will require updates and improvements and is being sold in its current condition. The main floor includes a living room with original hardwood floors, front sitting room, kitchen with wood cabinetry open to dining, and a primary bedroom suite over the garage with ¾ bath, spacious closet, and new mini split. Upstairs features three bedrooms with hardwood floors and a full bath (plumbed for separate shower). Unfinished basement includes laundry, boiler/hot water heat, gas water heater, sump pump, and updated sewer line. Metal storage shed included. Property borders railroad tracks. Recent city street & utility improvements with assessment paid over time through property taxes (not due in full at closing). Selling AS IS.

Key facts

• New cement driveway
• Vinyl windows
• Updated electrical

Tags

• STEEL SIDING
• VINYL WINDOWS
• NEW CEMENT DRIVEWAY
• UPDATED ELECTRICAL
• 50 AMP EXTERIOR PLUG
• 25X50 GRAVEL PARKING PAD

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $109k.

Deal economics

• At list price, monthly cash flow is $201 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $109k).
• Recommended offer: $96k (12.0% below list) — sets the bar for market timing.
• Cap rate 8.5% vs local median 2.3% in Pipestone — 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.

Location & tenants

• Location reads 72/100 on livability (#268 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools D+, employment D, amenities F.
• Pipestone Area School District (town): math 36% / reading 42% proficiency, ranked #233 of 301 in MN (top 77%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 45 active listings in the ZIP; 8 units permitted in Pipestone County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $754 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Pipestone County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 260 days — a 12% lower offer ($96k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 8y ago; this cycle's ask has dropped $20k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $39k; list at $109k implies a 179% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $95,920 (12.0% below list)

Questions for the listing agent

1. It's been on market 260 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 1920 — 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: 1.02% ✓
• Cap rate: 8.50%
• Cash-on-cash: 7.89%
• DSCR: 1.35
• GRM: 8.2

CMA / ARV

• ARV (median comp): $159,414
• List price: $109,000
• Delta: -31.62%
• Verdict: UNDERPRICED
• Comps: 6 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
622 SW 3rd Ave	0.61mi	5/2.5 (+1)	1,828 (+9%)	20mo	$200,000	$109	33

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: -4.3%
• Equity multiple: 0.84×
• Total profit: $-4,910
• Equity at exit: $16,252

10-year hold

• IRR: 5.4%
• Equity multiple: 1.40×
• Total profit: $12,057
• Equity at exit: $9,424

Cash invested: $30,520 (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 56164

• Home prices YoY: -3.9%
• Active inventory: 45
• Price-to-rent: 8.2×

Monthly cashflow live

• Estimated rent: $1,107 medium
• Mortgage (P&I): −$572
• Tax from tax record: −$57 /mo · $684/yr
• Insurance: −$45
• HOA: −$0
• Vacancy / Maint / Mgmt: −$233
• Net cashflow: $201

Break-even live

Break-even rent $853

Max offer price $109,000

Occupancy floor 77%

Sensitivity live

Price	-10% $262	-5% $232	+0% $201	+5% $170	+10% $139
Rent	-10% $113	-5% $157	+0% $201	+5% $244	+10% $288
Rate	-1.0pp $256	-0.5pp $228	base $201	+0.5pp $172	+1.0pp $144

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: $27,250
• Closing costs: $3,270
• Reserves months: —
• Total cash needed: —

Listing history 23 events

1. 2026-06-21
   days on market $109,000 Active 260 DOM
2. 2026-06-18
   days on market $109,000 Active 258 DOM
3. 2026-06-17
   days on market $109,000 Active 257 DOM
4. 2026-06-16
   days on market $109,000 Active 256 DOM
5. 2026-06-15
   days on market $109,000 Active 255 DOM
6. 2026-06-13
   days on market $109,000 Active 253 DOM
7. 2026-06-12
   days on market $109,000 Active 252 DOM
8. 2026-06-09
   days on market $109,000 Active 249 DOM
9. 2026-06-08
   days on market $109,000 Active 248 DOM
10. 2026-06-07
    days on market $109,000 Active 247 DOM
11. 2026-06-07
    days on market $109,000 Active 246 DOM
12. 2026-06-04
    days on market $109,000 Active 243 DOM
13. 2026-06-02
    days on market $109,000 Active 242 DOM
14. 2026-06-01
    days on market $109,000 Active 241 DOM
15. 2026-05-31
    days on market $109,000 Active 240 DOM
16. 2026-05-31
    days on market $109,000 Active 239 DOM
17. 2026-03-23
    price $119,000 1236-char remark

    Show marketing remark (1236 chars)

    1.5-Story with Major Exterior Updates – Ready for Interior Updates Extensive exterior improvements have already been completed, including steel siding (2021), vinyl windows in house & garage (2023), shingles on house & tin on garage (2018), new 200-amp panel (2023), compliant PVC city sewer line (2023), plus new cement driveway & sidewalk. The double garage offers updated electrical, a 50-amp exterior plug, and a 25x50 gravel parking pad for additional parking. Interior will require updates and improvements and is being sold in its current condition. The main floor includes a living room with original hardwood floors, front sitting room, kitchen with wood cabinetry open to dining, and a primary bedroom suite over the garage with ¾ bath, spacious closet, and new mini split. Upstairs features three bedrooms with hardwood floors and a full bath (plumbed for separate shower). Unfinished basement includes laundry, boiler/hot water heat, gas water heater, sump pump, and updated sewer line. Metal storage shed included. Property borders railroad tracks. Recent city street & utility improvements with assessment paid over time through property taxes (not due in full at closing). Selling AS IS.

18. 2026-02-02
    price $124,500 1236-char remark

    Show marketing remark (1236 chars)

    1.5-Story with Major Exterior Updates – Ready for Interior Updates Extensive exterior improvements have already been completed, including steel siding (2021), vinyl windows in house & garage (2023), shingles on house & tin on garage (2018), new 200-amp panel (2023), compliant PVC city sewer line (2023), plus new cement driveway & sidewalk. The double garage offers updated electrical, a 50-amp exterior plug, and a 25x50 gravel parking pad for additional parking. Interior will require updates and improvements and is being sold in its current condition. The main floor includes a living room with original hardwood floors, front sitting room, kitchen with wood cabinetry open to dining, and a primary bedroom suite over the garage with ¾ bath, spacious closet, and new mini split. Upstairs features three bedrooms with hardwood floors and a full bath (plumbed for separate shower). Unfinished basement includes laundry, boiler/hot water heat, gas water heater, sump pump, and updated sewer line. Metal storage shed included. Property borders railroad tracks. Recent city street & utility improvements with assessment paid over time through property taxes (not due in full at closing). Selling AS IS.

19. 2025-10-03
    listed $129,000 Active 1236-char remark

    Show marketing remark (1236 chars)

    1.5-Story with Major Exterior Updates – Ready for Interior Updates Extensive exterior improvements have already been completed, including steel siding (2021), vinyl windows in house & garage (2023), shingles on house & tin on garage (2018), new 200-amp panel (2023), compliant PVC city sewer line (2023), plus new cement driveway & sidewalk. The double garage offers updated electrical, a 50-amp exterior plug, and a 25x50 gravel parking pad for additional parking. Interior will require updates and improvements and is being sold in its current condition. The main floor includes a living room with original hardwood floors, front sitting room, kitchen with wood cabinetry open to dining, and a primary bedroom suite over the garage with ¾ bath, spacious closet, and new mini split. Upstairs features three bedrooms with hardwood floors and a full bath (plumbed for separate shower). Unfinished basement includes laundry, boiler/hot water heat, gas water heater, sump pump, and updated sewer line. Metal storage shed included. Property borders railroad tracks. Recent city street & utility improvements with assessment paid over time through property taxes (not due in full at closing). Selling AS IS.

20. 2019-02-02
    historical 441-char remark

    Show marketing remark (441 chars)

    1.5 story house with double attached garage. Kitchen includes dining bar counter top open to dining room area. Spacious carpeted living room and extra room. 4 upper level bedrooms includes a large master bedroom with private master 3/4 bath. 3 other carpeted bedrooms and full bath. Basement is poured/unfinished including potential family room, laundry room and utility room. Property needs some maintenance and is being SOLD AS IS.

21. 2018-05-17
    soldstatus $39,100
22. 2018-05-15
    soldstatus $39,000 441-char remark

    Show marketing remark (441 chars)

    1.5 story house with double attached garage. Kitchen includes dining bar counter top open to dining room area. Spacious carpeted living room and extra room. 4 upper level bedrooms includes a large master bedroom with private master 3/4 bath. 3 other carpeted bedrooms and full bath. Basement is poured/unfinished including potential family room, laundry room and utility room. Property needs some maintenance and is being SOLD AS IS.

23. 2018-02-16
    listed $41,900 441-char remark

    Show marketing remark (441 chars)

    1.5 story house with double attached garage. Kitchen includes dining bar counter top open to dining room area. Spacious carpeted living room and extra room. 4 upper level bedrooms includes a large master bedroom with private master 3/4 bath. 3 other carpeted bedrooms and full bath. Basement is poured/unfinished including potential family room, laundry room and utility room. Property needs some maintenance and is being SOLD AS IS.

ⓘ 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: $684 · $57/mo
• Projected year-2 tax: $952 · $79/mo
• Expected delta: +$268/yr (+$22/mo · 39.2%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,287
• − Mortgage interest: −$6,106
• − Property taxes: −$684
• − Insurance: −$545
• − Repairs & maintenance: −$1,063
• − Management: −$1,063
• − Depreciation: −$3,171
• Taxable income: $656
• Est. tax owed @ 24.0%: −$157
• After-tax cash flow: $2,251/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: Pipestone Area School District
• NCES district ID: 2700108
• Math proficiency: 36% ▼ -5.00%
• Reading proficiency: 42% ▼ -13.00%
• Median HH income: $43,965
• Composite: 33.07/100
• National rank: #5568
• State rank: #233 of 301 in MN

Livability — Pipestone

• Score: 72/100
• State rank: #268
• US rank: #5836

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Pipestone, MN
• Population (ZIP): 5,573

Population outlook (Pipestone County) Hauer SSP2

• Today (2025): 8,600 people
• By 2030: 8,276 · -3.8%
• By 2040: 7,705 · -10.4%
• By 2050: 7,235 · -15.9%
• By 2075: 7,155 · -16.8%
• By 2100: 7,738 · -10.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (85%)
• Race & ethnicity: White 85% Hispanic / Latino 7% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 5% Puerto Rican 1%
• Common ancestry: Portuguese 17% Iranian 10% Slovak 2%
• Foreign-born: 5% · Canada
• Languages at home: 95% English-only · Spanish 4%

Political lean MEDSL · Pipestone

• 2024 margin: Solid R (+48.1) · D 25.2% · R 73.3% · Other 1.6%
• 2008→2024 swing: -35.0pp toward R · 2008: -13.1pp · 2024: -48.1pp
• All cycles: 2024: R+48.1 2020: R+45.5 2016: R+46.3 2012: R+23.7 2008: R+13.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -13.00%
• Current HPI: 322.45
• 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

+184.0% since first listed

7 events — show timeline

• 2026-03-23 Price Changed $119,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-02 Price Changed $124,500 NORTHSTARMLS as Distributed by MLS Grid
• 2025-10-03 Listed $129,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-05-17 Sold (Public Records) $39,100 Public Records
• 2018-05-15 Sold (MLS) $39,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-02-16 Listed $41,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+2.4%/yr

Latest (2025): $684 · +4.3% YoY. Source: county tax records.