311 3rd Ave NW · Perham, MN 56573

$205,000

3 bd · 1.0 ba · 1,440 sqft · SingleFamily public records · 22 Days on market

Built 1947 10,628 sqft lot

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Why this score? — see what drove the B 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to your beautifully refreshed home in the heart of Perham! This 3-bedroom, 1-bathroom residence has been thoughtfully updated to maximize comfort and convenience. The main level features a completely reimagined layout, boasting a spacious primary bedroom, a modernized full bathroom, and the ultimate convenience of main-floor laundry. The expansive living room and kitchen shine with brand-new flooring, creating a seamless flow for daily living. Transition easily to outdoor entertaining through the kitchen’s walk-out deck—perfect for summer grilling and relaxing. Combining modern updates with a functional design, this home is ready for you to move in and enjoy!

Key facts

• Walk-out deck
• Reimagined layout
• Main-floor laundry

Tags

• REFRESHED HOME
• REIMAGINED LAYOUT
• MAIN-FLOOR LAUNDRY
• WALK-OUT DECK

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $205k.

Deal economics

• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $205k).
• Recommended offer: $202k (1.5% below list) — sets the bar for market timing.
• Cap rate 13.2% vs local median 6.0% in Perham — 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.

Location & tenants

• Location reads 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 92 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $57k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 22 days — a 2% lower offer ($202k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 7y 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 $124k; list at $205k implies a 66% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $201,925 (1.5% below list)

Questions for the listing agent

1. Built in 1947 — 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: 1.52% ✓
• Cap rate: 13.21%
• Cash-on-cash: 24.71%
• DSCR: 2.10
• GRM: 5.5

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: 18.1%
• Equity multiple: 1.73×
• Total profit: $42,039
• Equity at exit: $30,566

10-year hold

• IRR: 26.5%
• Equity multiple: 3.32×
• Total profit: $133,421
• Equity at exit: $17,725

Cash invested: $57,400 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 92
• Price-to-rent: 5.5×

Monthly cashflow live

• Estimated rent: $3,125 medium
• Mortgage (P&I): −$1,075
• Tax from tax record: −$126 /mo · $1,514/yr
• Insurance: −$85
• HOA: −$0
• Vacancy / Maint / Mgmt: −$656
• Net cashflow: $1,182

Break-even live

Break-even rent $1,629

Max offer price $205,000

Occupancy floor 57%

Sensitivity live

Price	-10% $1,298	-5% $1,240	+0% $1,182	+5% $1,124	+10% $1,066
Rent	-10% $935	-5% $1,059	+0% $1,182	+5% $1,306	+10% $1,429
Rate	-1.0pp $1,285	-0.5pp $1,234	base $1,182	+0.5pp $1,129	+1.0pp $1,075

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: $51,250
• Closing costs: $6,150
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
812 7th St SW Unit A Perham, MN	3.0	2.0	1602	$3,750	$2.34	44d	1	0.83mi
812 7th St SW Unit B Perham, MN	3.0	2.0	1602	$2,500	$1.56	44d	1	0.83mi

Listing history 8 events

1. 2026-05-18
   status Pending 688-char remark

   Show marketing remark (688 chars)

   Welcome to your beautifully refreshed home in the heart of Perham! This 3-bedroom, 1-bathroom residence has been thoughtfully updated to maximize comfort and convenience. The main level features a completely reimagined layout, boasting a spacious primary bedroom, a modernized full bathroom, and the ultimate convenience of main-floor laundry. The expansive living room and kitchen shine with brand-new flooring, creating a seamless flow for daily living. Transition easily to outdoor entertaining through the kitchen’s walk-out deck—perfect for summer grilling and relaxing. Combining modern updates with a functional design, this home is ready for you to move in and enjoy!

2. 2026-05-05
   historical Contingent - Inspection 688-char remark

   Show marketing remark (688 chars)

   Welcome to your beautifully refreshed home in the heart of Perham! This 3-bedroom, 1-bathroom residence has been thoughtfully updated to maximize comfort and convenience. The main level features a completely reimagined layout, boasting a spacious primary bedroom, a modernized full bathroom, and the ultimate convenience of main-floor laundry. The expansive living room and kitchen shine with brand-new flooring, creating a seamless flow for daily living. Transition easily to outdoor entertaining through the kitchen’s walk-out deck—perfect for summer grilling and relaxing. Combining modern updates with a functional design, this home is ready for you to move in and enjoy!

3. 2026-04-30
   status Active 688-char remark

   Show marketing remark (688 chars)

   Welcome to your beautifully refreshed home in the heart of Perham! This 3-bedroom, 1-bathroom residence has been thoughtfully updated to maximize comfort and convenience. The main level features a completely reimagined layout, boasting a spacious primary bedroom, a modernized full bathroom, and the ultimate convenience of main-floor laundry. The expansive living room and kitchen shine with brand-new flooring, creating a seamless flow for daily living. Transition easily to outdoor entertaining through the kitchen’s walk-out deck—perfect for summer grilling and relaxing. Combining modern updates with a functional design, this home is ready for you to move in and enjoy!

4. 2026-04-17
   listed $205,000 Active 688-char remark

   Show marketing remark (688 chars)

   Welcome to your beautifully refreshed home in the heart of Perham! This 3-bedroom, 1-bathroom residence has been thoughtfully updated to maximize comfort and convenience. The main level features a completely reimagined layout, boasting a spacious primary bedroom, a modernized full bathroom, and the ultimate convenience of main-floor laundry. The expansive living room and kitchen shine with brand-new flooring, creating a seamless flow for daily living. Transition easily to outdoor entertaining through the kitchen’s walk-out deck—perfect for summer grilling and relaxing. Combining modern updates with a functional design, this home is ready for you to move in and enjoy!

5. 2019-07-23
   soldstatus $123,600
6. 2019-06-04
   historical
7. 2019-01-21
   listed $129,000
8. 2006-07-14
   soldstatus $95,700

ⓘ 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: $1,514 · $126/mo
• Projected year-2 tax: $1,905 · $159/mo
• Expected delta: +$391/yr (+$33/mo · 25.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥97°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $37,500
• − Mortgage interest: −$11,483
• − Property taxes: −$1,514
• − Insurance: −$1,025
• − Repairs & maintenance: −$3,000
• − Management: −$3,000
• − Depreciation: −$5,964
• Taxable income: $11,514
• Est. tax owed @ 24.0%: −$2,763
• After-tax cash flow: $11,422/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: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Perham, MN
• Population (ZIP): 6,868

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.48%
• Current HPI: 225.7071
• 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

+114.2% since first listed

8 events — show timeline

• 2026-05-18 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-30 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-17 Listed $205,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-07-23 Sold (Public Records) $123,600 Public Records
• 2019-06-04 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2019-01-21 Listed $129,000 NORTHSTARMLS as Distributed by MLS Grid
• 2006-07-14 Sold (Public Records) $95,700 Public Records

Property tax history

+7.4%/yr

Latest (2025): $1,514 · -0.8% YoY. Source: county tax records.