525 3rd St SE · Perham, MN 56573

$225,000

2 bd · 2.0 ba · 1,538 sqft · SingleFamily public records · 57 Days on market

Built 1954 0.26 ac lot

---

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
• DSCR +10.0/10.0
• 1% rule +8.9/10.0
• ARV discount +7.5/15.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

AFFORDABLE YEAR-ROUND LIVING IN PERHAM! Located on the Southeast side of Perham just down the road from the Fairgrounds, this well-maintained home offers Space, Comfort, and Value in a Convenient Location. Set on a Large Lot with an Oversized Backyard, you’ll enjoy plenty of room for a Swing Set, Garden, or simply relaxing in the privacy of Mature Tree Coverage. Inside, the home offers 1,908 SqFt across two finished levels, filled with Natural Light and a functional layout. The Main Level features 2 Beds, a Full Bath, and a bright 3-Season Porch/Sunroom overlooking the backyard. Downstairs, the Finished Basement adds flexibility with a Second Bathroom, Ample Storage, and a Bonus Room that’s just an Egress Window away from becoming a 3rd Bedroom. Additional highlights include an Attached 13x21 Garage and a Detached 16x26 Garage with a Finished Shop Space perfect for hobbies or extra storage. Whether you’re searching for an Entry-Level Home or a Solid Addition to your Investment Portfolio, this property offers versatility and potential in a great location.

Key facts

• Large lot
• Finished basement
• Oversized backyard

Tags

• LARGE LOT
• OVERSIZED BACKYARD
• MATURE TREE COVERAGE
• 3-SEASON PORCH
• FINISHED BASEMENT
• AMPLE STORAGE

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $225k.

Deal economics

• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $225k).
• Recommended offer: $218k (3.0% below list) — sets the bar for market timing.
• Cap rate 11.9% vs local median 6.0% in Perham — 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.

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 $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 57 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 8y 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.
• Current owner paid $95k; list at $225k implies a 137% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $218,250 (3.0% below list)

Questions for the listing agent

1. It's been on market 57 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 1954 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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. 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.
6. 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.
7. 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: 1.39% ✓
• Cap rate: 11.89%
• Cash-on-cash: 20.00%
• DSCR: 1.89
• GRM: 6.0

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: 12.1%
• Equity multiple: 1.48×
• Total profit: $30,363
• Equity at exit: $33,548

10-year hold

• IRR: 21.1%
• Equity multiple: 2.78×
• Total profit: $112,383
• Equity at exit: $19,454

Cash invested: $63,000 (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: 6.0×

Monthly cashflow live

• Estimated rent: $3,125 medium
• Mortgage (P&I): −$1,180
• Tax from tax record: −$145 /mo · $1,744/yr
• Insurance: −$94
• HOA: −$0
• Vacancy / Maint / Mgmt: −$656
• Net cashflow: $1,050

Break-even live

Break-even rent $1,796

Max offer price $225,000

Occupancy floor 61%

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: $56,250
• Closing costs: $6,750
• 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	43d	1	0.92mi
812 7th St SW Unit B Perham, MN	3.0	2.0	1602	$2,500	$1.56	43d	1	0.92mi

Listing history 21 events

1. 2026-06-18
   days on market $225,000 Active 57 DOM
2. 2026-06-17
   days on market $225,000 Active 56 DOM
3. 2026-06-16
   days on market $225,000 Active 55 DOM
4. 2026-06-15
   days on market $225,000 Active 54 DOM
5. 2026-06-13
   days on market $225,000 Active 52 DOM
6. 2026-06-12
   days on market $225,000 Active 51 DOM
7. 2026-06-09
   days on market $225,000 Active 48 DOM
8. 2026-06-08
   days on market $225,000 Active 47 DOM
9. 2026-06-07
   days on market $225,000 Active 46 DOM
10. 2026-06-07
    days on market $225,000 Active 45 DOM
11. 2026-06-04
    days on market $225,000 Active 42 DOM
12. 2026-06-02
    days on market $225,000 Active 41 DOM
13. 2026-06-01
    days on market $225,000 Active 40 DOM
14. 2026-05-31
    days on market $225,000 Active 39 DOM
15. 2026-05-31
    days on market $225,000 Active 38 DOM
16. 2026-04-22
    listed $225,000 Active 1091-char remark

    Show marketing remark (1091 chars)

    AFFORDABLE YEAR-ROUND LIVING IN PERHAM! Located on the Southeast side of Perham just down the road from the Fairgrounds, this well-maintained home offers Space, Comfort, and Value in a Convenient Location. Set on a Large Lot with an Oversized Backyard, you’ll enjoy plenty of room for a Swing Set, Garden, or simply relaxing in the privacy of Mature Tree Coverage. Inside, the home offers 1,908 SqFt across two finished levels, filled with Natural Light and a functional layout. The Main Level features 2 Beds, a Full Bath, and a bright 3-Season Porch/Sunroom overlooking the backyard. Downstairs, the Finished Basement adds flexibility with a Second Bathroom, Ample Storage, and a Bonus Room that’s just an Egress Window away from becoming a 3rd Bedroom. Additional highlights include an Attached 13x21 Garage and a Detached 16x26 Garage with a Finished Shop Space perfect for hobbies or extra storage. Whether you’re searching for an Entry-Level Home or a Solid Addition to your Investment Portfolio, this property offers versatility and potential in a great location.

17. 2019-03-08
    soldstatus $95,000
18. 2019-03-04
    soldstatus $95,000 254-char remark

    Show marketing remark (254 chars)

    This beautiful home is move in ready.A one story home in a quiet neighborhood. A small but cute yard that is easy to manage. The basement has a ton of potential for a third bedroom, an extra family room, or add that Man Cave you're families been wanting!

19. 2019-01-24
    listed $105,000 254-char remark

    Show marketing remark (254 chars)

    This beautiful home is move in ready.A one story home in a quiet neighborhood. A small but cute yard that is easy to manage. The basement has a ton of potential for a third bedroom, an extra family room, or add that Man Cave you're families been wanting!

20. 2018-11-30
    historical
21. 2018-09-19
    listed $115,000

ⓘ 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: $1,744 · $145/mo
• Projected year-2 tax: $2,132 · $178/mo
• Expected delta: +$388/yr (+$32/mo · 22.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥97°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $37,500
• − Mortgage interest: −$12,603
• − Property taxes: −$1,744
• − Insurance: −$1,125
• − Repairs & maintenance: −$3,000
• − Management: −$3,000
• − Depreciation: −$6,545
• Taxable income: $9,482
• Est. tax owed @ 24.0%: −$2,276
• After-tax cash flow: $10,321/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: 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

+95.7% since first listed

6 events — show timeline

• 2026-04-22 Listed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-03-08 Sold (Public Records) $95,000 Public Records
• 2019-03-04 Sold (MLS) $95,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-01-24 Listed $105,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-11-30 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-09-19 Listed $115,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+10.1%/yr

Latest (2025): $1,744 · +3.6% YoY. Source: county tax records.