108 1st St S · Nerstrand, MN 55053

$139,900

4 bd · 1.0 ba · 1,257 sqft · SingleFamily public records · 17 Days on market

Built 1900 0.36 ac lot

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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 +26.0/30.0
• DSCR +8.7/10.0
• ARV discount +7.5/15.0
• 1% rule +6.3/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.3/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Hard to find fixer upper - great property to make your own with TLC or an awesome investment opportunity! Solid 4 bedroom home has a main level bedroom, huge kitchen with potential large walk-in pantry, beautiful stained glass window and ornate front door, large deck, hardwood floors & more. This property has a double lot, so the outdoor space potential is limitless. Affordable opportunity to own your own home!

Key facts

• Large deck
• Main level bedroom
• Stained glass window

Tags

• MAIN LEVEL BEDROOM
• HUGE KITCHEN
• LARGE WALK-IN PANTRY
• STAINED GLASS WINDOW
• ORNATE FRONT DOOR
• LARGE DECK

What this means for you Summary

Snapshot

• This is a 4-bed/1.0-bath single-family listed at $140k.

Deal economics

• At list price, monthly cash flow is $348 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Recommended offer: $138k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 67/100 on livability (#465 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment B; Watch: amenities F, commute F, health & safety D-.
• Faribault Public School District (town): math 17% / reading 34% proficiency, ranked #275 of 301 in MN (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 5 active listings in the ZIP; 93 units permitted in Rice County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $967 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 17 days — a 2% lower offer ($138k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $137,801 (1.5% below list)

Questions for the listing agent

1. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are B-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?
4. 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.
5. 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.
6. 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: 1.13% ✓
• Cap rate: 9.28%
• Cash-on-cash: 10.65%
• DSCR: 1.47
• GRM: 7.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -0.4%
• Equity multiple: 0.99×
• Total profit: $-533
• Equity at exit: $20,860

10-year hold

• IRR: 9.3%
• Equity multiple: 1.71×
• Total profit: $28,000
• Equity at exit: $12,096

Cash invested: $39,172 (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 55053

• Active inventory: 5
• Price-to-rent: 7.4×

Monthly cashflow live

• Estimated rent: $1,585 medium
• Mortgage (P&I): −$734
• Tax from tax record: −$113 /mo · $1,352/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$333
• Net cashflow: $348

Break-even live

Break-even rent $1,145

Max offer price $139,900

Occupancy floor 73%

Sensitivity live

Price	-10% $427	-5% $387	+0% $348	+5% $308	+10% $269
Rent	-10% $223	-5% $285	+0% $348	+5% $410	+10% $473
Rate	-1.0pp $418	-0.5pp $383	base $348	+0.5pp $312	+1.0pp $275

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: $34,975
• Closing costs: $4,197
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-05-04
   status Pending 421-char remark

   Show marketing remark (421 chars)

   Hard to find fixer upper - great property to make your own with TLC or an awesome investment opportunity! Solid 4 bedroom home has a main level bedroom, huge kitchen with potential large walk-in pantry, beautiful stained glass window and ornate front door, large deck, hardwood floors & more. This property has a double lot, so the outdoor space potential is limitless. Affordable opportunity to own your own home!

2. 2026-04-15
   listed $139,900 Active 421-char remark

   Show marketing remark (421 chars)

   Hard to find fixer upper - great property to make your own with TLC or an awesome investment opportunity! Solid 4 bedroom home has a main level bedroom, huge kitchen with potential large walk-in pantry, beautiful stained glass window and ornate front door, large deck, hardwood floors & more. This property has a double lot, so the outdoor space potential is limitless. Affordable opportunity to own your own home!

ⓘ 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: $1,352 · $113/mo
• Projected year-2 tax: $1,459 · $122/mo
• Expected delta: +$107/yr (+$9/mo · 7.9%)

ⓘ 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 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,024
• − Mortgage interest: −$7,837
• − Property taxes: −$1,352
• − Insurance: −$700
• − Repairs & maintenance: −$1,522
• − Management: −$1,522
• − Depreciation: −$4,070
• Taxable income: $2,022
• Est. tax owed @ 24.0%: −$485
• After-tax cash flow: $3,688/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: Faribault Public School District
• NCES district ID: 2711760
• Math proficiency: 17% ▼ -18.00%
• Reading proficiency: 34% ▼ -8.00%
• Median HH income: $54,584
• Composite: 22.85/100
• National rank: #8011
• State rank: #275 of 301 in MN

Livability — Nerstrand

• Score: 67/100
• State rank: #465
• US rank: #11064

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Nerstrand, MN
• City population: 995
• Population (ZIP): 995

Population outlook (Rice County) Hauer SSP2

• Today (2025): 66,716 people
• By 2030: 67,352 · +1.0%
• By 2040: 67,595 · +1.3%
• By 2050: 67,074 · +0.5%
• By 2075: 66,641 · -0.1%
• By 2100: 66,205 · -0.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Hispanic / Latino 7% Two or more races 6%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 23% Italian 3% Lithuanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 94% English-only · Spanish 5% German/W. Germanic 1%

Political lean MEDSL · Rice

• 2024 margin: Toss-up / Even · D 47.8% · R 50.3% · Other 1.8%
• 2008→2024 swing: -14.0pp toward R · 2008: 11.5pp · 2024: -2.5pp
• All cycles: 2024: R+2.5 2020: R+0.2 2016: R+3.1 2012: D+8.3 2008: D+11.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -142.35%
• Current HPI: 161.2291
• 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

2 events — show timeline

• 2026-05-04 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-15 Listed $139,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+3.3%/yr

Latest (2025): $1,352 · +1.0% YoY. Source: county tax records.