8016 81st Ave N

Brooklyn Park, MN 55445

$365,000F

2 bd · 2.0 ba · 1,016 sqft · Built 1978 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,403/mo
• Mortgage (P&I): −$1,914
• Tax + insurance: −$459
• HOA: −$0
• Vac / Maint / Mgmt: −$295
• Net cashflow: $-1,265/mo
• Annual: $-15,181/yr
• Cap rate: 2.13%
• Cash-on-cash: -14.85%
• DSCR: 0.34
• 1% rule: 0.38%
• Cash to close: $102,200

Investor read

• This is a 2-bed/2.0-bath single-family listed at $365k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $142k (61.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $140k (61.6% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $140k (61.6% below list) — sets the bar for 1% rule.
• 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.
• Location reads 81/100 on livability (#50 in MN, #1,308 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: crime C-, amenities F.
• Osseo Public School District (suburban): math 42% / reading 51% proficiency, ranked #129 of 301 in MN (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rice Lake Elementary (math 50% / reading 46%, grade D, #484 of 857 statewide, top 57%, 627 students, 42% FRL); North View Middle School (math 11% / reading 25%, grade F, #238 of 258 statewide, top 92%, 406 students, 84% FRL); Osseo Senior High (math 26% / reading 58%, grade F, #222 of 471 statewide, top 50%, 2,280 students, 55% FRL) — zoned schools average 60% FRL vs 32% district-wide (28 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 51 active listings in the ZIP; 13 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Current owner paid $182k; list at $365k implies a 100% gain — meaningful room to come down on a strong offer.
• Cap rate 2.1% vs local median 3.0% in Brooklyn Park — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Built in 1978 — 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?
• 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.
• 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.