116 5th St NW · Mahnomen, MN 56557

$46,800

4 bd · 2.0 ba · 1,599 sqft · Other · 41 Days on market

Built 1940 0.49 ac lot

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Why this score? — see what drove the B+ 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +8.1/10.0
• ARV discount +7.5/15.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.0/10.0

Listing remarks

Spacious 1.5-story home offering 4 bedrooms and 2 bathrooms with approximately 1,600 finished square feet. Features include main-level bedrooms, main floor laundry, and a functional layout with generous living space. Interior highlights include a wood-burning fireplace and additional upper-level rooms. Situated on a large lot with a detached garage and convenient in-town location near local amenities. Property is connected to city water and sewer with forced air heat.

Key facts

• Main-level bedrooms
• Main floor laundry
• Large lot

Tags

• MAIN-LEVEL BEDROOMS
• MAIN FLOOR LAUNDRY
• WOOD-BURNING FIREPLACE
• LARGE LOT
• DETACHED GARAGE
• CONVENIENT IN-TOWN LOCATION

Property features AI

Exterior

• Parking: Detached concrete parking area; 1-car garage (approximately 12 x 24)
• Utilities: City water (connected); City sewer (connected); 100 amp electrical service; Propane fuel
• Home design: Residential property; One-and-a-half story
• Construction: Frame construction; Asphalt roof; Built on block foundation
• Exterior features: Publicly maintained road access; Irregular lot with multiple dimensions

Interior

• Kitchen: Kitchen on the main level
• Bedrooms: Four bedrooms (main and upper levels; two bedrooms on the main level, two on the upper level)
• Bathrooms: Two three-quarter bathrooms
• Heating & cooling: Forced air heating; Fireplace contributes to heating; No central air
• Interior features: Full masonry wood-burning fireplace in the family room; Unfinished basement with block foundation and sump pump
• Laundry & utility: Main-level laundry

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath other listed at $47k.

Deal economics

• At list price, monthly cash flow is $638 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $47k).
• Recommended offer: $45k (3.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 70/100 on livability (#348 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D, amenities F, commute F.
• Mahnomen Public School District (rural): math 21% / reading 26% proficiency, ranked #286 of 301 in MN (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 14 active listings in the ZIP.

Forward outlook

• In year one you build about $3k of equity ($324 loan paydown + $3k appreciation (6.2% local appreciation)).
• Mahnomen County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (6.2% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 41 days — a 3% lower offer ($45k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: property tax is 2.9% of price; built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $45,396 (3.0% below list)

Questions for the listing agent

1. It's been on market 41 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
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: 2.75% ✓
• Cap rate: 22.65%
• Cash-on-cash: 58.41%
• DSCR: 3.60
• GRM: 3.0

CMA / ARV

No comps found within radius.

Projected returns pro-forma

6.24% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 66.8%
• Equity multiple: 5.19×
• Total profit: $54,853
• Equity at exit: $30,129

10-year hold

• IRR: 63.6%
• Equity multiple: 10.88×
• Total profit: $129,478
• Equity at exit: $55,259

Cash invested: $13,104 (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 56557

• Home prices YoY: 4.3%
• Active inventory: 14
• Price-to-rent: 3.0×

Monthly cashflow live

• Estimated rent: $1,287 medium
• Mortgage (P&I): −$245
• Tax from tax record: −$114 /mo · $1,364/yr
• Insurance: −$20
• HOA: −$0
• Vacancy / Maint / Mgmt: −$270
• Net cashflow: $638

Break-even live

Break-even rent $479

Max offer price $46,800

Occupancy floor 45%

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: $11,700
• Closing costs: $1,404
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-18
   days on market $46,800 Active 41 DOM
2. 2026-06-17
   days on market $46,800 Active 40 DOM
3. 2026-06-16
   days on market $46,800 Active 39 DOM
4. 2026-06-15
   days on market $46,800 Active 38 DOM
5. 2026-06-13
   days on market $46,800 Active 36 DOM
6. 2026-06-12
   days on market $46,800 Active 35 DOM
7. 2026-06-09
   days on market $46,800 Active 32 DOM
8. 2026-06-08
   days on market $46,800 Active 31 DOM
9. 2026-06-07
   days on market $46,800 Active 30 DOM
10. 2026-06-05
    days on market $46,800 Active 28 DOM
11. 2026-06-04
    days on market $46,800 Active 26 DOM
12. 2026-06-02
    days on market $46,800 Active 25 DOM
13. 2026-06-01
    days on market $46,800 Active 24 DOM
14. 2026-05-31
    days on market $46,800 Active 23 DOM
15. 2026-05-31
    days on market $46,800 Active 22 DOM
16. 2026-05-08
    listed $46,800 Active 472-char remark

ⓘ 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: $1,364 · $114/mo
• Projected year-2 tax: $1,364 · $114/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥96°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: $15,439
• − Mortgage interest: −$2,622
• − Property taxes: −$1,364
• − Insurance: −$234
• − Repairs & maintenance: −$1,235
• − Management: −$1,235
• − Depreciation: −$1,361
• Taxable income: $7,388
• Est. tax owed @ 24.0%: −$1,773
• After-tax cash flow: $5,880/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: Mahnomen Public School District
• NCES district ID: 2718660
• Math proficiency: 21% ▼ -11.00%
• Reading proficiency: 26% ▼ -7.00%
• Median HH income: $38,299
• Composite: 19.69/100
• National rank: #8730
• State rank: #286 of 301 in MN

Livability — Mahnomen

• Score: 70/100
• State rank: #348
• US rank: #8055

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment F Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mahnomen, MN
• Population (ZIP): 2,797

Population outlook (Mahnomen County) Hauer SSP2

• Today (2025): 5,233 people
• By 2030: 5,133 · -1.9%
• By 2040: 4,967 · -5.1%
• By 2050: 4,822 · -7.9%
• By 2075: 4,539 · -13.3%
• By 2100: 4,317 · -17.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.80)
• Race & ethnicity: White 45% Native American 36% Two or more races 18% Hispanic / Latino 5%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 14% Lithuanian 7% Iranian 2%
• Foreign-born: 1% · Canada
• Languages at home: 91% English-only · Spanish 1% Other Asian/Pacific 1%

Political lean MEDSL · Mahnomen

• 2024 margin: Lean R (+8.7) · D 44.8% · R 53.5% · Other 1.6%
• 2008→2024 swing: -34.0pp toward R · 2008: 25.3pp · 2024: -8.7pp
• All cycles: 2024: R+8.7 2020: R+1.3 2016: R+2.9 2012: D+18.6 2008: D+25.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 6.24%
• Current HPI: 151.1959
• 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

1 event — show timeline

• 2026-05-08 Listed $46,800 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+9.2%/yr

Latest (2026): $1,364 · +2.9% YoY. Source: county tax records.