3905 Highway 11 · Rainy Lake, MN 56649

$109,900

2 bd · 2.0 ba · 1,056 sqft · SingleFamily public records · 314 Days on market

Built 1965 1.08 ac lot $104/sqft · at area comps Est $144k · 24% under

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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).

• Cash flow +15.2/30.0
• ARV discount +15.0/15.0
• DSCR +4.7/10.0
• 1% rule +3.7/10.0
• Schools +3.6/10.0
• Rent growth +2.5/5.0
• Livability +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

Key facts

• Versatile bonus room
• Detached garage
• 1.08 acre lot

Tags

• DETACHED HEATED GARAGE
• DETACHED GARAGE
• VERSATILE BONUS ROOM

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $110k.

Deal economics

• At list price, monthly cash flow is $39 ($466/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $96k (12.9% below list).
• Recommended offer: $96k (12.9% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads: area grade D — affects rentability + tenant quality, not the cash-flow math above.
• International Falls School District (town): math 40% / reading 45% proficiency, ranked #211 of 301 in MN (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Falls Elementary (math 52% / reading 52%, grade C-, #368 of 857 statewide, top 47%, 393 students, 49% FRL); Falls Secondary (math 32% / reading 41%, grade F, #298 of 471 statewide, top 63%, 501 students, 38% FRL).
• Market conditions: 70 active listings in the ZIP; 26 units permitted in Koochiching County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $760 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Koochiching County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 314 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 4y ago; this cycle's ask has dropped $10k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Recommended offer $95,686 (12.9% below list)

Questions for the listing agent

1. It's been on market 314 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
2. Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. 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: 0.87% ✗
• Cap rate: 6.72%
• Cash-on-cash: 1.51%
• DSCR: 1.07
• GRM: 9.6

CMA / ARV

• ARV (median comp): $144,198
• List price: $109,900
• Delta: -23.79%
• Verdict: UNDERPRICED
• Comps: 2 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -13.9%
• Equity multiple: 0.50×
• Total profit: $-15,349
• Equity at exit: $16,386

10-year hold

• IRR: -5.1%
• Equity multiple: 0.67×
• Total profit: $-10,231
• Equity at exit: $9,502

Cash invested: $30,772 (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 56649

• Home prices YoY: -22.7%
• Active inventory: 70
• Price-to-rent: 9.6×

Monthly cashflow live

• Estimated rent: $957 medium
• Mortgage (P&I): −$576
• Tax from tax record: −$95 /mo · $1,140/yr
• Insurance: −$46
• HOA: −$0
• Vacancy / Maint / Mgmt: −$201
• Net cashflow: $39

Break-even live

Break-even rent $908

Max offer price $109,900

Occupancy floor 91%

Sensitivity live

Price	-10% $101	-5% $70	+0% $39	+5% $8	+10% $-23
Rent	-10% $-37	-5% $1	+0% $39	+5% $77	+10% $114
Rate	-1.0pp $94	-0.5pp $67	base $39	+0.5pp $10	+1.0pp $-19

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: $27,475
• Closing costs: $3,297
• Reserves months: —
• Total cash needed: —

Listing history 32 events

1. 2026-06-21
   days on market $109,900 Active 314 DOM
2. 2026-06-21
   days on market $109,900 Active 313 DOM
3. 2026-06-18
   days on market $109,900 Active 311 DOM
4. 2026-06-17
   days on market $109,900 Active 310 DOM
5. 2026-06-16
   days on market $109,900 Active 309 DOM
6. 2026-06-15
   days on market $109,900 Active 308 DOM
7. 2026-06-13
   days on market $109,900 Active 306 DOM
8. 2026-06-12
   days on market $109,900 Active 305 DOM
9. 2026-06-09
   days on market $109,900 Active 302 DOM
10. 2026-06-08
    days on market $109,900 Active 301 DOM
11. 2026-06-07
    days on market $109,900 Active 300 DOM
12. 2026-06-07
    days on market $109,900 Active 299 DOM
13. 2026-06-04
    days on market $109,900 Active 296 DOM
14. 2026-06-02
    days on market $109,900 Active 295 DOM
15. 2026-06-01
    days on market $109,900 Active 294 DOM
16. 2026-05-31
    days on market $109,900 Active 293 DOM
17. 2026-05-31
    days on market $109,900 Active 292 DOM
18. 2025-09-30
    status Active 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

19. 2025-09-22
    historical Contingent - Inspection 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

20. 2025-09-11
    price $109,900 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

21. 2025-09-11
    price $109,900 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

22. 2025-08-12
    listed $119,900 Active 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

23. 2025-08-11
    listed $119,900 Active 535-char remark

    Show marketing remark (535 chars)

    Welcome home! This charming 1.25-story home set on 1.08 acres, offering comfort, functionality, and plenty of storage. Inside, you'll find 2 bedrooms, 2 bathrooms, and a versatile bonus room that's perfect for an office, hobby space, or a guest area. The property features a 2-stall detached heated garage, plus a 16x20 detached garage ideal for use as a workshop or storage shed. With space to spread out both indoors and out, this home is a great fit for those looking for a peaceful setting with room for hobbies, toys, or projects.

24. 2025-03-29
    historical
25. 2025-02-21
    status Active
26. 2025-01-23
    status Pending
27. 2025-01-21
    historical Contingent - Inspection
28. 2025-01-21
    status Pending
29. 2024-12-10
    listed $119,900 Active
30. 2022-10-19
    soldstatus $103,000
31. 2022-10-17
    soldstatus $103,000
32. 2022-09-02
    listed $105,000

ⓘ 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: $1,140 · $95/mo
• Projected year-2 tax: $1,185 · $99/mo
• Expected delta: +$45/yr (+$4/mo · 4.0%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥91°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,482
• − Mortgage interest: −$6,156
• − Property taxes: −$1,140
• − Insurance: −$550
• − Repairs & maintenance: −$919
• − Management: −$919
• − Depreciation: −$3,197
• Taxable loss: −$1,398
• Est. tax savings @ 24.0%: +$335
• After-tax cash flow: $801/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: International Falls School District
• NCES district ID: 2715000
• Math proficiency: 40% ▼ -14.00%
• Reading proficiency: 45% ▼ -18.00%
• Median HH income: $42,926
• Composite: 35.88/100
• National rank: #4813
• State rank: #211 of 301 in MN

Livability — Rainy Lake

No livability data for this city. (Only ~50 U.S. cities are tracked.)

Census & demographics

• Population (ZIP): 8,895

Population outlook (Koochiching County) Hauer SSP2

• Today (2025): 11,977 people
• By 2030: 11,406 · -4.8%
• By 2040: 10,045 · -16.1%
• By 2050: 8,746 · -27.0%
• By 2075: 6,363 · -46.9%
• By 2100: 4,275 · -64.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Two or more races 7% Native American 2% Hispanic / Latino 2%
• Common ancestry: Portuguese 20% Lithuanian 5% Romanian 3%
• Foreign-born: 3% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Koochiching

• 2024 margin: Strong R (+25.7) · D 36.4% · R 62.0% · Other 1.6%
• 2008→2024 swing: -35.8pp toward R · 2008: 10.1pp · 2024: -25.7pp
• All cycles: 2024: R+25.7 2020: R+21.3 2016: R+20.0 2012: D+9.5 2008: D+10.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -51.62%
• Current HPI: 176.118
• 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

+4.7% since first listed

15 events — show timeline

• 2025-09-30 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-22 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-11 Price Changed $109,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-11 Price Changed $109,900 RAOR
• 2025-08-12 Listed $119,900 RAOR
• 2025-08-11 Listed $119,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-03-29 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-02-21 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2025-01-23 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-01-21 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2025-01-21 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2024-12-10 Listed $119,900 NORTHSTARMLS as Distributed by MLS Grid
• 2022-10-19 Sold (Public Records) $103,000 Public Records
• 2022-10-17 Sold (MLS) $103,000 RAOR
• 2022-09-02 Listed $105,000 RAOR

Property tax history

+9.7%/yr

Latest (2026): $1,140 · +21.0% YoY. Source: county tax records.