6342 Saint Johns Dr

Eden Prairie, MN 55346

$255,000D

2 bd · 2.5 ba · 1,658 sqft · Built 1974 · Townhouse · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,138/mo
• Mortgage (P&I): −$1,337
• Tax + insurance: −$338
• HOA: −$430
• Vac / Maint / Mgmt: −$449
• Net cashflow: $-417/mo
• Annual: $-4,998/yr
• Cap rate: 4.33%
• Cash-on-cash: -7.00%
• DSCR: 0.69
• 1% rule: 0.84%
• Cash to close: $71,400

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $255k.
• At list price, monthly cash flow is $-417 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $181k (28.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $214k (16.2% below list).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $181k (28.9% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#21 in MN, #575 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F.
• Eden Prairie Public School District (urban): math 61% / reading 70% proficiency, ranked #13 of 301 in MN (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 17% free/reduced lunch — higher-income household profile.
• Zoned schools: Eagle Heights Spanish Immersion (math 62% / reading 75%, grade B+, #91 of 857 statewide, top 11%, 715 students, 9% FRL); Central Middle School (math 55% / reading 69%, grade B+, #19 of 258 statewide, top 8%, 1,909 students, 30% FRL); Eden Prairie Senior High (math 61% / reading 71%, grade B, #24 of 471 statewide, top 5%, 2,833 students, 31% FRL).
• Watch-outs: HOA is 20% of rent.
• Market conditions: 62 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 8 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.
• Cap rate 4.3% vs local median 2.7% in Eden Prairie — 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.

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?
• Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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?
• 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.