409 1st Ave N

Sartell, MN 56377

$225,500D

3 bd · 2.0 ba · 1,006 sqft · Built 1917 · SingleFamily · Active · 129 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,614/mo
• Mortgage (P&I): −$1,183
• Tax + insurance: −$328
• HOA: −$0
• Vac / Maint / Mgmt: −$339
• Net cashflow: $-235/mo
• Annual: $-2,825/yr
• Cap rate: 5.39%
• Cash-on-cash: -3.21%
• DSCR: 0.86
• 1% rule: 0.72%
• Cash to close: $63,140

Investor read

• This is a 3-bed/2.0-bath single-family listed at $226k.
• At list price, monthly cash flow is $-235 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $184k (18.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $161k (28.4% below list).
• It's been on market 129 days — a 12% lower offer ($198k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $161k (28.4% 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 $7k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#11 in MN, #386 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, housing A+; Watch: amenities F.
• Sartell-St. Stephen School District (suburban): math 62% / reading 65% proficiency, ranked #18 of 301 in MN (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Oak Ridge Early Learning Center (271 students, 31% FRL); Sartell Middle (math 62% / reading 67%, grade A-, #14 of 258 statewide, top 6%, 978 students, 22% FRL); Sartell Senior High (math 53% / reading 62%, grade C, #59 of 471 statewide, top 13%, 1,349 students, 21% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1917 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 194 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 661 units permitted in Stearns County in 2024 (291 in 5+ unit buildings).
• Stearns County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 5 sale attempts since 7y ago; this cycle's ask has dropped $34k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $185k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 5.4% vs local median 3.1% in Sartell — 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.

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 129 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?