1349 Easter Ln

Eagan, MN 55123

$460,000D

6 bd · 3.0 ba · 2,184 sqft · Built 1975 · MultiFamily · Pending · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,724/mo
• Mortgage (P&I): −$2,412
• Tax + insurance: −$558
• HOA: −$0
• Vac / Maint / Mgmt: −$782
• Net cashflow: $-28/mo
• Annual: $-334/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.26%
• DSCR: 0.99
• 1% rule: 0.81%
• Cash to close: $128,800

Investor read

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $460k.
• At list price, monthly cash flow is $-28 ($-334/yr) — negative. Per door: $-14/mo.
• To cash-flow at today's rent, offer at most $455k (1.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $372k (19.0% below list).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $372k (19.0% 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 $14k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#13 in MN, #418 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: cost of living D+, amenities F.
• Rosemount-Apple Valley-Eagan (suburban): math 50% / reading 58% proficiency, ranked #58 of 301 in MN (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Northview Elementary (math 50% / reading 52%, grade C-, #406 of 857 statewide, top 48%, 391 students, 24% FRL); Black Hawk Middle (math 42% / reading 58%, grade C, #77 of 258 statewide, top 31%, 894 students, 43% FRL); Eagan Senior High (math 54% / reading 77%, grade B, #26 of 471 statewide, top 5%, 2,171 students, 23% FRL).
• Market conditions: Rents rising (+3.1%/yr); 140 active listings in the ZIP; high-income renter base; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 6.2% vs local median 3.3% in Eagan — 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.
• This rent runs 32% of the median local income ($139k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1975 — 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 A-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?
• 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.