506 E 2nd St N · Truman, MN 56088

$120,000

3 bd · 1.0 ba · 1,384 sqft · SingleFamily public records · 87 Days on market

Built 1948 10,497 sqft lot $87/sqft · 9% below area Est $132k · 9% under

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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 +20.9/30.0
• ARV discount +11.5/15.0
• Appreciation +10.0/10.0
• DSCR +6.7/10.0
• 1% rule +5.4/10.0
• Schools +3.9/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Welcome to this inviting 3 bedroom, 1 bath home offering a functional layout and comfortable everyday living. The exterior features durable siding, providing long lasting curb appeal and low maintenance peace of mind. Inside, the main level includes a bright living area that flows easily into the kitchen. Three well sized bedrooms offer flexibility for family, guests, or a home office, while the full bathroom is conveniently located nearby. With practical spaces, natural light throughout, and a layout that makes the most of every square foot, this home is a great opportunity for homeowners or investors alike.

Key facts

• 0.24 acre lot
• Garage
• Built 1948

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $120k.

Deal economics

• At list price, monthly cash flow is $167 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $120k).
• Recommended offer: $113k (6.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 76/100 on livability (#150 in MN, #3,331 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, amenities F, commute F.
• Truman Public School District (rural): math 30% / reading 55% proficiency, ranked #343 of 467 in MN (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 16 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $13k of equity ($830 loan paydown + $12k appreciation (10.0% local appreciation)).
• Martin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 87 days — a 6% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 16y 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.

Risks & watch-outs

• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $112,800 (6.0% below list)

Questions for the listing agent

1. It's been on market 87 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
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: 1.04% ✓
• Cap rate: 7.96%
• Cash-on-cash: 5.96%
• DSCR: 1.27
• GRM: 8.0

CMA / ARV

• ARV (median comp): $131,721
• List price: $120,000
• Delta: -8.90%
• Verdict: FAIR
• Comps: 7 within 1.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 28.6%
• Equity multiple: 3.26×
• Total profit: $75,993
• Equity at exit: $108,106

10-year hold

• IRR: 24.9%
• Equity multiple: 7.41×
• Total profit: $215,461
• Equity at exit: $233,134

Cash invested: $33,600 (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 56088

• Home prices YoY: 6.4%
• Active inventory: 16
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $1,251 medium
• Mortgage (P&I): −$629
• Tax from tax record: −$142 /mo · $1,706/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$263
• Net cashflow: $167

Break-even live

Break-even rent $1,040

Max offer price $120,000

Occupancy floor 82%

Sensitivity live

Price	-10% $235	-5% $201	+0% $167	+5% $133	+10% $99
Rent	-10% $68	-5% $117	+0% $167	+5% $216	+10% $266
Rate	-1.0pp $227	-0.5pp $197	base $167	+0.5pp $136	+1.0pp $104

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: $30,000
• Closing costs: $3,600
• Reserves months: —
• Total cash needed: —

Listing history 21 events

1. 2026-06-21
   days on market $120,000 Active 87 DOM
2. 2026-06-18
   days on market $120,000 Active 85 DOM
3. 2026-06-17
   days on market $120,000 Active 84 DOM
4. 2026-06-16
   days on market $120,000 Active 83 DOM
5. 2026-06-15
   days on market $120,000 Active 82 DOM
6. 2026-06-13
   days on market $120,000 Active 80 DOM
7. 2026-06-12
   days on market $120,000 Active 79 DOM
8. 2026-06-09
   days on market $120,000 Active 76 DOM
9. 2026-06-08
   days on market $120,000 Active 75 DOM
10. 2026-06-07
    days on market $120,000 Active 74 DOM
11. 2026-06-05
    days on market $120,000 Active 72 DOM
12. 2026-06-04
    days on market $120,000 Active 70 DOM
13. 2026-06-02
    days on market $120,000 Active 69 DOM
14. 2026-06-01
    days on market $120,000 Active 68 DOM
15. 2026-05-31
    days on market $120,000 Active 67 DOM
16. 2026-05-31
    days on market $120,000 Active 66 DOM
17. 2026-05-08
    status Active 616-char remark

    Show marketing remark (616 chars)

    Welcome to this inviting 3 bedroom, 1 bath home offering a functional layout and comfortable everyday living. The exterior features durable siding, providing long lasting curb appeal and low maintenance peace of mind. Inside, the main level includes a bright living area that flows easily into the kitchen. Three well sized bedrooms offer flexibility for family, guests, or a home office, while the full bathroom is conveniently located nearby. With practical spaces, natural light throughout, and a layout that makes the most of every square foot, this home is a great opportunity for homeowners or investors alike.

18. 2026-05-03
    historical 616-char remark

    Show marketing remark (616 chars)

    Welcome to this inviting 3 bedroom, 1 bath home offering a functional layout and comfortable everyday living. The exterior features durable siding, providing long lasting curb appeal and low maintenance peace of mind. Inside, the main level includes a bright living area that flows easily into the kitchen. Three well sized bedrooms offer flexibility for family, guests, or a home office, while the full bathroom is conveniently located nearby. With practical spaces, natural light throughout, and a layout that makes the most of every square foot, this home is a great opportunity for homeowners or investors alike.

19. 2026-03-18
    listed $120,000 Active 616-char remark

    Show marketing remark (616 chars)

    Welcome to this inviting 3 bedroom, 1 bath home offering a functional layout and comfortable everyday living. The exterior features durable siding, providing long lasting curb appeal and low maintenance peace of mind. Inside, the main level includes a bright living area that flows easily into the kitchen. Three well sized bedrooms offer flexibility for family, guests, or a home office, while the full bathroom is conveniently located nearby. With practical spaces, natural light throughout, and a layout that makes the most of every square foot, this home is a great opportunity for homeowners or investors alike.

20. 2010-12-29
    listed $119,900
21. 2010-12-29
    listed $119,900

ⓘ 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: $1,706 · $142/mo
• Projected year-2 tax: $1,706 · $142/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 4/10 Moderate 21% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,012
• − Mortgage interest: −$6,722
• − Property taxes: −$1,706
• − Insurance: −$600
• − Repairs & maintenance: −$1,201
• − Management: −$1,201
• − Depreciation: −$3,491
• Taxable income: $91
• Est. tax owed @ 24.0%: −$22
• After-tax cash flow: $1,980/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: Truman Public School District
• NCES district ID: 2740680
• Math proficiency: 30% ▼ -10.00%
• Reading proficiency: 55% ▲ 10.00%
• Median HH income: $51,077
• Composite: 38.94/100
• National rank: #8312
• State rank: #343 of 467 in MN

Livability — Truman

• Score: 76/100
• State rank: #150
• US rank: #3331

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Truman, MN
• Population (ZIP): 2,063

Population outlook (Martin County) Hauer SSP2

• Today (2025): 18,583 people
• By 2030: 17,814 · -4.1%
• By 2040: 16,312 · -12.2%
• By 2050: 15,021 · -19.2%
• By 2075: 13,025 · -29.9%
• By 2100: 11,311 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (94%)
• Race & ethnicity: White 94% Two or more races 4% Hispanic / Latino 4%
• Common ancestry: Portuguese 9% Romanian 5% Scottish 3%
• Foreign-born: 4% · Canada
• Languages at home: 95% English-only · Other Indo-European 3% Spanish 1% Russian/Polish/Slavic 1%

Political lean MEDSL · Martin

• 2024 margin: Solid R (+39.7) · D 29.5% · R 69.1% · Other 1.4%
• 2008→2024 swing: -24.4pp toward R · 2008: -15.2pp · 2024: -39.7pp
• All cycles: 2024: R+39.7 2020: R+37.9 2016: R+41.4 2012: R+23.8 2008: R+15.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 16.26%
• Current HPI: 271.5076
• 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

+0.1% since first listed

5 events — show timeline

• 2026-05-08 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-03 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-18 Listed $120,000 NORTHSTARMLS as Distributed by MLS Grid
• 2010-12-29 Listed $119,900 NORTHSTARMLS as Distributed by MLS Grid
• 2010-12-29 Listed $119,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+10.3%/yr

Latest (2025): $1,706 · +13.0% YoY. Source: county tax records.