2850 Holly St S

Cambridge, MN 55008

$336,000F

3 bd · 1.0 ba · 1,262 sqft · Built 1963 · SingleFamily · Pending · 4 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,763/mo
• Mortgage (P&I): −$1,762
• Tax + insurance: −$503
• HOA: −$0
• Vac / Maint / Mgmt: −$370
• Net cashflow: $-872/mo
• Annual: $-10,469/yr
• Cap rate: 3.18%
• Cash-on-cash: -11.13%
• DSCR: 0.50
• 1% rule: 0.52%
• Cash to close: $94,080

Investor read

• This is a 3-bed/1.0-bath single-family listed at $336k.
• At list price, monthly cash flow is $-872 ($-10k/yr) — negative.
• To cash-flow at today's rent, offer at most $182k (45.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $176k (47.5% below list).
• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $176k (47.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#180 in MN, #3,872 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime A; Watch: amenities F, commute F.
• Cambridge-Isanti Public School District (town): math 47% / reading 55% proficiency, ranked #96 of 301 in MN (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cambridge Intermediate School (math 62% / reading 55%, grade B-, #251 of 857 statewide, top 30%, 503 students, 40% FRL); Cambridge Middle School (math 43% / reading 62%, grade C+, #59 of 258 statewide, top 24%, 605 students, 36% FRL); Cambridge-Isanti High School (math 37% / reading 60%, grade D, #156 of 471 statewide, top 33%, 1,605 students, 36% FRL).
• Market conditions: 193 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 191 units permitted in Isanti County in 2024 (28 in 5+ unit buildings).
• Isanti County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 3 sale attempts since 28y ago; this cycle's ask is 187% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $110k; list at $336k implies a 205% gain — meaningful room to come down on a strong offer.

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?
• Built in 1963 — 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.
• 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.