1804 3rd St

Waubun, MN 56589

$145,400D

3 bd · 1.0 ba · 1,092 sqft · Built 1975 · SingleFamily · Active · 41 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,020/mo
• Mortgage (P&I): −$762
• Tax + insurance: −$155
• HOA: −$0
• Vac / Maint / Mgmt: −$214
• Net cashflow: $-111/mo
• Annual: $-1,337/yr
• Cap rate: 5.37%
• Cash-on-cash: -3.28%
• DSCR: 0.85
• 1% rule: 0.70%
• Cash to close: $40,712

Investor read

• This is a 3-bed/1.0-bath single-family listed at $145k.
• At list price, monthly cash flow is $-111 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $126k (13.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $102k (29.8% below list).
• It's been on market 41 days — a 3% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $102k (29.8% below list) — sets the bar for 1% rule.
• In year one you build about $16k of equity ($1k loan paydown + $15k appreciation (10.0% local appreciation)).
• Location reads 61/100 on livability (#744 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing B+; Watch: health & safety D+, crime D-, amenities F.
• Waubun-Ogema-White Earth Public Schools (rural): math 19% / reading 32% proficiency, ranked #281 of 301 in MN (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Ogema Elementary (math 15% / reading 15%, grade F, #779 of 857 statewide, top 91%, 279 students, 74% FRL); Waubun Elementary (math 22% / reading 37%, grade F, #204 of 258 statewide, top 80%, 172 students, 76% FRL); Waubun Secondary (math 17% / reading 37%, grade F, #369 of 471 statewide, top 79%, 241 students, 70% FRL).
• Market conditions: 19 active listings in the ZIP.
• Mahnomen County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Current owner paid $52k; list at $145k implies a 182% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 41 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-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?
• 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.