13492 Edgewood Ln SE

Mentor, MN 56736

$185,000F

3 bd · 1.0 ba · 952 sqft · Built 2012 · SingleFamily · Pending · 26 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,013/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$278
• HOA: −$25
• Vac / Maint / Mgmt: −$213
• Net cashflow: $-473/mo
• Annual: $-5,671/yr
• Cap rate: 3.23%
• Cash-on-cash: -10.95%
• DSCR: 0.51
• 1% rule: 0.55%
• Cash to close: $51,800

Investor read

• This is a 3-bed/1.0-bath single-family listed at $185k.
• At list price, monthly cash flow is $-473 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $102k (45.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $101k (45.2% below list).
• It's been on market 26 days — a 2% lower offer ($182k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $101k (45.2% below list) — sets the bar for 1% rule.
• In year one you build about $18k of equity ($1k loan paydown + $16k appreciation (8.8% local appreciation)).
• Location reads 57/100 on livability (#827 in MN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A, housing A; Watch: health & safety D+, amenities F, commute F.
• Fertile-Beltrami School District (rural): math 55% / reading 64% proficiency, ranked #47 of 301 in MN (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Fertile-Beltrami Elementary (math 57% / reading 72%, grade B, #130 of 857 statewide, top 18%, 260 students, 50% FRL); Fertile-Beltrami Secondary (math 52% / reading 57%, grade C-, #87 of 471 statewide, top 22%, 244 students, 37% FRL) — zoned schools average 43% FRL vs 22% district-wide (21 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 25 active listings in the ZIP; 42 units permitted in Polk County in 2024 (0 in 5+ unit buildings).
• Polk County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 6 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $145k; 28% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$44k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.
• 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.