8393 Sioux Trl SW

Meadow Brook, MN 56479

$69,500B-

2 bd · None ba · 576 sqft · Built 2020 · SingleFamily · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,133/mo
• Mortgage (P&I): −$364
• Tax + insurance: −$116
• HOA: −$37
• Vac / Maint / Mgmt: −$238
• Net cashflow: $378/mo
• Annual: $4,532/yr
• Cap rate: 12.81%
• Cash-on-cash: 23.29%
• DSCR: 2.04
• 1% rule: 1.63%
• Cash to close: $19,460

Investor read

• This is a 2-bed/?-bath single-family listed at $70k. Condition is rated fair.
• At list price, monthly cash flow is $378 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $70k).
• It's been on market 34 days — a 3% lower offer ($67k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $67k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $481 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Staples-Motley School District (rural): math 37% / reading 39% proficiency, ranked #238 of 301 in MN (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Staples-Motley Elementary (math 47% / reading 32%, grade F, #604 of 857 statewide, top 74%, 301 students, 60% FRL); Motley-Staples Middle School (math 34% / reading 40%, grade F, #163 of 258 statewide, top 65%, 295 students, 51% FRL); Staples-Motley Senior High (math 27% / reading 47%, grade F, #282 of 471 statewide, top 63%, 335 students, 36% FRL).
• Market conditions: 50 active listings in the ZIP; 285 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~6 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 34 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Weathered and peeling
• Major: Flooring — Exposed subflooring
• Major: Interior walls — Unfinished drywall