507 Main St · Tower, MN 55790

$159,000

2 bd · 2.0 ba · 1,512 sqft · Other public records · 346 Days on market

Built 1925 4,792 sqft lot $105/sqft · 9% above area Est $146k · 9% over

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Why this score? — see what drove the D- 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).

• Appreciation +10.0/10.0
• Cash flow +8.1/30.0
• Schools +3.6/10.0
• ARV discount +3.3/15.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +2.1/10.0
• 1% rule +1.9/10.0

Listing remarks MLS

Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

Key facts

• Excellent visibility
• High traffic flow
• 4,792 sq ft lot

Tags

• PRIME DOWNTOWN LOCATION
• HIGH TRAFFIC FLOW
• EXCELLENT VISIBILITY
• RESIDENTIAL LIVING QUARTERS
• PRIVATE LIVING QUARTERS
• UPPER REAR-FACING DECK

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath other listed at $159k.

Deal economics

• At list price, monthly cash flow is $-158 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $131k (17.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (30.6% below list).
• Recommended offer: $110k (30.6% below list) — sets the bar for 1% rule.
• Cap rate 5.1% vs local median 0.4% in Tower — 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 65/100 on livability (#517 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools B; Watch: crime C-, employment C-, health & safety D.
• St. Louis County School District (rural): math 34% / reading 49% proficiency, ranked #212 of 301 in MN (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 128 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).

Forward outlook

• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (10.0% local appreciation)).
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 346 days — a 12% lower offer ($140k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 6y ago; this cycle's ask has dropped $17k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $50k; list at $159k implies a 218% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $110,286 (30.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 346 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
3. Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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: 0.69% ✗
• Cap rate: 5.10%
• Cash-on-cash: -4.25%
• DSCR: 0.81
• GRM: 12.0

CMA / ARV

• ARV (median comp): $145,551
• List price: $159,000
• Delta: 9.24%
• Verdict: FAIR
• Comps: 8 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 21.3%
• Equity multiple: 2.72×
• Total profit: $76,530
• Equity at exit: $143,240

10-year hold

• IRR: 19.2%
• Equity multiple: 6.24×
• Total profit: $233,210
• Equity at exit: $308,902

Cash invested: $44,520 (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 55790

• Home prices YoY: 8.4%
• Active inventory: 128
• Price-to-rent: 12.0×

Monthly cashflow live

• Estimated rent: $1,103 medium
• Mortgage (P&I): −$834
• Tax from tax record: −$129 /mo · $1,546/yr
• Insurance: −$66
• HOA: −$0
• Vacancy / Maint / Mgmt: −$232
• Net cashflow: $-158

Break-even live

Break-even rent $1,302

Max offer price $131,154

Occupancy floor —

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: $39,750
• Closing costs: $4,770
• Reserves months: —
• Total cash needed: —

Listing history 29 events

1. 2026-06-19
   days on market $159,000 Active 346 DOM
2. 2026-06-18
   days on market $159,000 Active 345 DOM
3. 2026-06-17
   days on market $159,000 Active 344 DOM
4. 2026-06-16
   days on market $159,000 Active 343 DOM
5. 2026-06-15
   days on market $159,000 Active 342 DOM
6. 2026-06-14
   days on market $159,000 Active 340 DOM
7. 2026-06-13
   days on market $159,000 Active 339 DOM
8. 2026-06-10
   days on market $159,000 Active 337 DOM
9. 2026-06-09
   days on market $159,000 Active 336 DOM
10. 2026-06-08
    days on market $159,000 Active 335 DOM
11. 2026-06-07
    days on market $159,000 Active 334 DOM
12. 2026-06-02
    days on market $159,000 Active 329 DOM
13. 2026-06-01
    days on market $159,000 Active 328 DOM
14. 2026-05-31
    days on market $159,000 Active 327 DOM
15. 2026-05-30
    days on market $159,000 Active 326 DOM
16. 2026-04-29
    status Active 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

17. 2026-04-28
    historical 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

18. 2026-03-29
    price $159,000 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

19. 2025-07-16
    price $169,000 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

20. 2025-07-16
    status Active 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

21. 2025-07-08
    listed $176,000 Active 900-char remark

    Show marketing remark (900 chars)

    Located in a prime downtown location just off the main street/hwy with high traffic flow & excellent visibility, this unique residential/commercial property offers a fantastic opportunity for a business with the added benefit of residential living quarters above. The upper level provides private living quarters w/ 3 BRs, 1 bath, a kitchenette and an upper rear-facing deck. The spacious office area on the main floor is perfect for a variety of businesses, whether you're looking to set up an office, retail space, or professional services. Large windows allow for excellent visibility & natural light, while the open floor plan offers flexibility to customize the space to suit your specific needs. AND THE Bonus is a 2-stall heated garage! With its unbeatable location near beautiful Lake Vermilion, this property offers access to the surrounding community & outdoor activities.

22. 2021-04-28
    historical
23. 2020-08-05
    price $95,000
24. 2020-08-04
    listed $99,000 Active
25. 2019-02-20
    soldstatus $50,000
26. 2015-11-03
    soldstatus $50,000
27. 2014-12-24
    soldstatus $50,000
28. 2013-01-30
    soldstatus $37,000
29. 2006-02-21
    soldstatus $80,000

ⓘ 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: $1,546 · $129/mo
• Projected year-2 tax: $1,663 · $139/mo
• Expected delta: +$117/yr (+$10/mo · 7.6%)

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

Taxation est. · year 1

• Rental income: $13,234
• − Mortgage interest: −$8,906
• − Property taxes: −$1,546
• − Insurance: −$795
• − Repairs & maintenance: −$1,059
• − Management: −$1,059
• − Depreciation: −$4,625
• Taxable loss: −$4,756
• Est. tax savings @ 24.0%: +$1,141
• After-tax cash flow: $-750/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: St. Louis County School District
• NCES district ID: 2700008
• Math proficiency: 34% ▼ -7.00%
• Reading proficiency: 49% ▼ -6.00%
• Median HH income: $49,389
• Composite: 35.63/100
• National rank: #4886
• State rank: #212 of 301 in MN

Livability — Tower

• Score: 65/100
• State rank: #517
• US rank: #12482

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Tower, MN
• Population (ZIP): 1,933

Population outlook (St. Louis County) Hauer SSP2

• Today (2025): 202,411 people
• By 2030: 203,234 · +0.4%
• By 2040: 202,520 · +0.1%
• By 2050: 200,853 · -0.8%
• By 2075: 200,943 · -0.7%
• By 2100: 192,058 · -5.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (80%)
• Race & ethnicity: White 80% Native American 11% Two or more races 5% Hispanic / Latino 3%
• Common ancestry: Portuguese 9% Lithuanian 3% Scottish 2%
• Foreign-born: 1% · Canada

Political lean MEDSL · St. Louis

• 2024 margin: D (+13.7) · D 55.9% · R 42.2% · Other 1.8%
• 2008→2024 swing: -18.8pp toward R · 2008: 32.5pp · 2024: 13.7pp
• All cycles: 2024: D+13.7 2020: D+15.6 2016: D+11.8 2012: D+29.6 2008: D+32.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 23.54%
• Current HPI: 302.84
• 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

+98.8% since first listed

14 events — show timeline

• 2026-04-29 Relisted — RAOR
• 2026-04-28 Delisted — RAOR
• 2026-03-29 Price Changed $159,000 RAOR
• 2025-07-16 Price Changed $169,000 RAOR
• 2025-07-16 Relisted — RAOR
• 2025-07-08 Listed $176,000 RAOR
• 2021-04-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2020-08-05 Price Changed $95,000 NORTHSTARMLS as Distributed by MLS Grid
• 2020-08-04 Listed $99,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-20 Sold (Public Records) $50,000 Public Records
• 2015-11-03 Sold (Public Records) $50,000 Public Records
• 2014-12-24 Sold (Public Records) $50,000 Public Records
• 2013-01-30 Sold (Public Records) $37,000 Public Records
• 2006-02-21 Sold (Public Records) $80,000 Public Records

Property tax history

-1.7%/yr

Latest (2025): $1,546 · -2.6% YoY. Source: county tax records.