201 Main Ave

Chandler, MN 56122

$170,000D

3 bd · 3.0 ba · 1,872 sqft · Built 1976 · SingleFamily · Active · 122 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,225/mo
• Mortgage (P&I): −$891
• Tax + insurance: −$161
• HOA: −$0
• Vac / Maint / Mgmt: −$257
• Net cashflow: $-85/mo
• Annual: $-1,016/yr
• Cap rate: 5.70%
• Cash-on-cash: -2.14%
• DSCR: 0.90
• 1% rule: 0.72%
• Cash to close: $47,600

Investor read

• This is a 3-bed/3.0-bath single-family listed at $170k.
• At list price, monthly cash flow is $-85 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $155k (8.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $122k (28.0% below list).
• It's been on market 122 days — a 12% lower offer ($150k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $122k (28.0% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($1k loan paydown + $5k appreciation (3.0% local appreciation)).
• Location reads 62/100 on livability (#705 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, employment B+, housing B; Watch: health & safety D+, crime D, amenities F.
• Murray County Central School District (rural): math 68% / reading 60% proficiency, ranked #28 of 301 in MN (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Murray Co. Central Elementary (math 76% / reading 57%, grade B+, #113 of 857 statewide, top 14%, 386 students, 43% FRL); Murray County Central Secondary (math 57% / reading 62%, grade C+, #46 of 471 statewide, top 11%, 335 students, 35% FRL) — zoned schools average 39% FRL vs 22% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 1 active listings in the ZIP; 21 units permitted in Murray County in 2024 (0 in 5+ unit buildings).
• Murray County population projected at -14% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 6, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 122 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?