1005 8th Ave NE · Perham, MN 56573

$379,000

3 bd · 2.0 ba · 1,534 sqft · SingleFamily · 47 Days on market

Built 2024 Excellent condition 10,585 sqft lot

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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 +11.1/30.0
• ARV discount +7.5/15.0
• Condition / age +5.0/5.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• 1% rule +3.2/10.0
• DSCR +3.2/10.0
• Rent growth +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

New Construction in Perham that's move in ready! Quality built home in well developed neighborhood. 3 Bedroom, 2 bath home on slab with open floor plan, kitchen island, patio doors leading to the backyard. Nice, bright interior finishes. Attached 2 car garage. Upgrades included: insulated and sheetrocked garage, Yard is seeded and has lawn irrigation($12,000 Value). 2" slab insulation ($8,000 value). This development connects via walking/biking path to the City of Perham's walking/biking trails, pickle balls courts, softball fields, dog park, and 27 hole golf course. TIF financing available to those who qualify to reduce special assessments.

Key facts

• Open floor plan
• Patio doors
• New construction

Tags

• NEW CONSTRUCTION
• WELL DEVELOPED NEIGHBORHOOD
• OPEN FLOOR PLAN
• KITCHEN ISLAND
• PATIO DOORS
• BACKYARD

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $379k. Condition is rated excellent.

Deal economics

• At list price, monthly cash flow is $-150 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $357k (5.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $312k (17.5% below list).
• Recommended offer: $312k (17.5% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 92 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 47 days — a 3% lower offer ($368k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 2y 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.

Recommended offer $312,500 (17.5% below list)

Questions for the listing agent

1. 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?
2. It's been on market 47 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are B-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?
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: 0.82% ✗
• Cap rate: 5.82%
• Cash-on-cash: -1.70%
• DSCR: 0.92
• GRM: 10.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -19.1%
• Equity multiple: 0.33×
• Total profit: $-70,948
• Equity at exit: $56,510

10-year hold

• IRR: -11.7%
• Equity multiple: 0.30×
• Total profit: $-73,926
• Equity at exit: $32,769

Cash invested: $106,120 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 92
• Price-to-rent: 10.1×

Monthly cashflow live

• Estimated rent: $3,125 medium
• Mortgage (P&I): −$1,988
• Tax est. 1.5%: −$474 /mo · $5,685/yr
• Insurance: −$158
• HOA: −$0
• Vacancy / Maint / Mgmt: −$656
• Net cashflow: $-150

Break-even live

Break-even rent $3,315

Max offer price $357,232

Occupancy floor 100%

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: $94,750
• Closing costs: $11,370
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
812 7th St SW Unit A Perham, MN	3.0	2.0	1602	$3,750	$2.34	44d	1	1.08mi
812 7th St SW Unit B Perham, MN	3.0	2.0	1602	$2,500	$1.56	44d	1	1.08mi

Listing history 19 events

1. 2026-06-18
   days on market $379,000 Active 47 DOM
2. 2026-06-17
   days on market $379,000 Active 46 DOM
3. 2026-06-16
   days on market $379,000 Active 45 DOM
4. 2026-06-15
   days on market $379,000 Active 44 DOM
5. 2026-06-13
   days on market $379,000 Active 42 DOM
6. 2026-06-12
   days on market $379,000 Active 41 DOM
7. 2026-06-09
   days on market $379,000 Active 38 DOM
8. 2026-06-08
   days on market $379,000 Active 37 DOM
9. 2026-06-07
   days on market $379,000 Active 36 DOM
10. 2026-06-07
    days on market $379,000 Active 35 DOM
11. 2026-06-04
    days on market $379,000 Active 32 DOM
12. 2026-06-02
    days on market $379,000 Active 31 DOM
13. 2026-06-01
    days on market $379,000 Active 30 DOM
14. 2026-05-31
    days on market $379,000 Active 29 DOM
15. 2026-05-31
    days on market $379,000 Active 28 DOM
16. 2025-10-01
    historical
17. 2025-03-18
    listed $385,000 Active
18. 2025-03-18
    historical
19. 2024-04-18
    listed $385,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $37,500
• − Mortgage interest: −$21,230
• − Property taxes: −$5,685
• − Insurance: −$1,895
• − Repairs & maintenance: −$3,000
• − Management: −$3,000
• − Depreciation: −$11,025
• Taxable loss: −$8,335
• Est. tax savings @ 24.0%: +$2,000
• After-tax cash flow: $195/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.

Condition & rehab AI · 12 photos

Excellent 100/100 None rehab

This move-in-ready home in Perham, Minnesota, features a modern open floor plan, quality finishes, and a well-maintained exterior. It's located in a well-developed neighborhood with access to walking/biking trails and other amenities. The home is in excellent condition with no visible repairs or maintenance needed.

Value-add opportunities

• Both Landscaping and irrigation system — Enhances curb appeal and adds value for both resale and rental.
• Both Add smart home features — Improves convenience and adds modern appeal, attracting more buyers and renters.
• Both Install smart thermostat — Saves energy and adds modern appeal, attracting more buyers and renters.
• Both Add smart lighting system — Saves energy and adds modern appeal, attracting more buyers and renters.

Renovation cost estimate screening

Value-add ROI direction

• Both Landscaping and irrigation system — Enhances curb appeal and adds value for both resale and rental. ↑
• Both Add smart home features — Improves convenience and adds modern appeal, attracting more buyers and renters. ↑
• Both Install smart thermostat — Saves energy and adds modern appeal, attracting more buyers and renters. ↑
• Both Add smart lighting system — Saves energy and adds modern appeal, attracting more buyers and renters. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Perham, MN
• Population (ZIP): 6,868

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.48%
• Current HPI: 225.7071
• 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

+0.0% since first listed

4 events — show timeline

• 2025-10-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-03-18 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-03-18 Listed $385,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-04-18 Listed $385,000 NORTHSTARMLS as Distributed by MLS Grid