7885 Lake Fourteen Rd

Mountain Iron, MN 55710

$71,400B-

2 bd · None ba · 560 sqft · Built 2014 · Other · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $799/mo
• Mortgage (P&I): −$374
• Tax + insurance: −$77
• HOA: −$0
• Vac / Maint / Mgmt: −$168
• Net cashflow: $179/mo
• Annual: $2,148/yr
• Cap rate: 9.30%
• Cash-on-cash: 10.74%
• DSCR: 1.48
• 1% rule: 1.12%
• Cash to close: $19,992

Investor read

• This is a 2-bed/?-bath other listed at $71k.
• At list price, monthly cash flow is $179 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($799 rent vs $71k).
• It's been on market 32 days — a 3% lower offer ($69k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $69k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($494 loan paydown + $1k appreciation (1.5% local appreciation)).
• Location reads 72/100 on livability (#266 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Mountain Iron-Buhl School District (town): math 36% / reading 51% proficiency, ranked #196 of 301 in MN (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Merritt Elementary (math 37% / reading 52%, grade F, #534 of 857 statewide, top 66%, 350 students, 51% FRL); Mountain Iron-Buhl Secondary (math 37% / reading 52%, grade F, #189 of 471 statewide, top 44%, 268 students, 49% FRL).
• Market conditions: 10 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).
• 5 sale attempts 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.
• At projected returns (1.5% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~5 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 32 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.