400 2nd Ave SE · Wells, MN 56097

$109,500

3 bd · 1.0 ba · 1,256 sqft · SingleFamily public records · 8 Days on market

Built 1880 6,969 sqft lot $87/sqft · 7% above area Est $84k · 30% over

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Why this score? — see what drove the C 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 +22.9/30.0
• Appreciation +10.0/10.0
• DSCR +7.4/10.0
• 1% rule +5.6/10.0
• Schools +4.2/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• ARV discount +0.0/15.0

Listing remarks MLS

This spacious home offers room to spread out, a great covered patio for summer evenings, a two-stall garage, and a location that’s hard to beat — just a few blocks from the park and community pool, this is a solid opportunity to build equity over time. Being sold as is, but definitely a home you can live in while you add your own style over time.

Key facts

• Location near park
• Covered patio
• 6,969 sq ft lot

Tags

• COVERED PATIO
• LOCATION NEAR PARK
• LOCATION NEAR COMMUNITY POOL

Property features AI

Exterior

• Parking: Attached garage with 2 spaces (approximately 25 x 23)
• Utilities: City water (connected); City sewer (connected); Electric fuel
• Home design: Residential property; One-and-a-half story; Main entry on main level
• Construction: Block foundation; Foundation area about 442; Roof over 8 years old
• Exterior features: Covered porch; Vinyl siding

Interior

• Kitchen: Refrigerator; Range; Microwave
• Bedrooms: Three bedrooms (two on the upper level, one on the main level)
• Bathrooms: Two three-quarter bathrooms
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Water softener (owned)
• Laundry & utility: Washer; Dryer; Electric water heater; Utility room (14 x 12)

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $110k.

Deal economics

• At list price, monthly cash flow is $192 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).

Location & tenants

• Location reads 76/100 on livability (#149 in MN, #3,328 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities D, employment D, commute F.
• United South Central School District (rural): math 46% / reading 53% proficiency, ranked #130 of 301 in MN (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 28 active listings in the ZIP; 4 units permitted in Faribault County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $12k of equity ($757 loan paydown + $11k appreciation (10.0% local appreciation)).
• Faribault County population projected at -11% 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 $31k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$42k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• 5 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 1880 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $109,500

Questions for the listing agent

1. Built in 1880 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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: 1.06% ✓
• Cap rate: 8.40%
• Cash-on-cash: 7.53%
• DSCR: 1.34
• GRM: 7.9

CMA / ARV

• ARV (median comp): $83,962
• List price: $109,500
• Delta: 30.42%
• Verdict: OVERPRICED
• Comps: 10 within 1.0 mi

Show comp detail 2 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
291 NW 1st St	0.42mi	3/1.0	1,304 (+4%)	8mo	$81,000	$62	68
384 5th St St SW	0.39mi	3/1.0	1,359 (+8%)	1mo	$132,000	$97	68

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: 29.8%
• Equity multiple: 3.34×
• Total profit: $71,894
• Equity at exit: $98,646

10-year hold

• IRR: 25.8%
• Equity multiple: 7.59×
• Total profit: $202,071
• Equity at exit: $212,734

Cash invested: $30,660 (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 56097

• Home prices YoY: 4.6%
• Active inventory: 28
• Price-to-rent: 7.9×

Monthly cashflow live

• Estimated rent: $1,161 medium
• Mortgage (P&I): −$574
• Tax from tax record: −$105 /mo · $1,258/yr
• Insurance: −$46
• HOA: −$0
• Vacancy / Maint / Mgmt: −$244
• Net cashflow: $192

Break-even live

Break-even rent $917

Max offer price $109,500

Occupancy floor 78%

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: $27,375
• Closing costs: $3,285
• Reserves months: —
• Total cash needed: —

Listing history 15 events

1. 2026-05-15
   status Pending 360-char remark

   Show marketing remark (360 chars)

   This spacious home offers room to spread out, a great covered patio for summer evenings, a two-stall garage, and a location that’s hard to beat — just a few blocks from the park and community pool, this is a solid opportunity to build equity over time. Being sold as is, but definitely a home you can live in while you add your own style over time.

2. 2026-05-15
   status Pending 360-char remark

   Show marketing remark (360 chars)

   This spacious home offers room to spread out, a great covered patio for summer evenings, a two-stall garage, and a location that’s hard to beat — just a few blocks from the park and community pool, this is a solid opportunity to build equity over time. Being sold as is, but definitely a home you can live in while you add your own style over time.

3. 2026-05-07
   listed $109,500 Active 360-char remark

   Show marketing remark (360 chars)

   This spacious home offers room to spread out, a great covered patio for summer evenings, a two-stall garage, and a location that’s hard to beat — just a few blocks from the park and community pool, this is a solid opportunity to build equity over time. Being sold as is, but definitely a home you can live in while you add your own style over time.

4. 2026-05-07
   listed $109,500 Active 360-char remark

   Show marketing remark (360 chars)

   This spacious home offers room to spread out, a great covered patio for summer evenings, a two-stall garage, and a location that’s hard to beat — just a few blocks from the park and community pool, this is a solid opportunity to build equity over time. Being sold as is, but definitely a home you can live in while you add your own style over time.

5. 2018-03-26
   soldstatus $66,000 Sold

   Show marketing remark (456 chars)

   Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

6. 2018-03-19
   soldstatus $66,000
7. 2018-03-07
   status Pending

   Show marketing remark (456 chars)

   Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

8. 2018-02-05
   historical Contingent - Inspection

   Show marketing remark (456 chars)

   Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

9. 2017-10-06
   price $69,900

   Show marketing remark (456 chars)

   Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

10. 2017-07-20
    price $74,900

    Show marketing remark (456 chars)

    Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

11. 2017-04-28
    listed $79,900 Active

    Show marketing remark (456 chars)

    Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

12. 2017-04-28
    listed $69,900

    Show marketing remark (456 chars)

    Spacious & open layout, two story 3 BR, 2 BA home located on a corner lot. Two upper level bedrooms with a 3/4 BA & two large closets in the hallway. The main floor offers a dining room, eat-in kitchen, "L" shaped living room and another BR. The lower level of the home offers a second 3/4 BA, laundry room, utility room & storage closets. Two stall detached garage and a nice play area with storage sheds & partially fenced yard.

13. 2012-09-04
    soldstatus $54,075
14. 2010-07-13
    listed $59,900
15. 2001-04-20
    soldstatus $35,000

ⓘ 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: $1,258 · $105/mo
• Projected year-2 tax: $1,258 · $105/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 1/10 Low 0% 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: $13,932
• − Mortgage interest: −$6,134
• − Property taxes: −$1,258
• − Insurance: −$548
• − Repairs & maintenance: −$1,115
• − Management: −$1,115
• − Depreciation: −$3,185
• Taxable income: $578
• Est. tax owed @ 24.0%: −$139
• After-tax cash flow: $2,171/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: United South Central School District
• NCES district ID: 2700005
• Math proficiency: 46% ▼ -10.00%
• Reading proficiency: 53% ▼ -8.00%
• Median HH income: $46,722
• Composite: 42.03/100
• National rank: #3330
• State rank: #130 of 301 in MN

Livability — Wells

• Score: 76/100
• State rank: #149
• US rank: #3328

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Wells, MN
• Population (ZIP): 3,593

Population outlook (Faribault County) Hauer SSP2

• Today (2025): 13,474 people
• By 2030: 13,112 · -2.7%
• By 2040: 12,454 · -7.6%
• By 2050: 11,973 · -11.1%
• By 2075: 11,565 · -14.2%
• By 2100: 10,844 · -19.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Two or more races 4% Hispanic / Latino 4%
• Common ancestry: Portuguese 13% Romanian 7% Lithuanian 2%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 2%

Political lean MEDSL · Faribault

• 2024 margin: Solid R (+37.4) · D 30.4% · R 67.8% · Other 1.8%
• 2008→2024 swing: -31.8pp toward R · 2008: -5.6pp · 2024: -37.4pp
• All cycles: 2024: R+37.4 2020: R+33.6 2016: R+34.1 2012: R+9.1 2008: R+5.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 11.75%
• Current HPI: 267.13
• 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

+212.9% since first listed

17 events — show timeline

• 2026-05-28 Sold (MLS) $109,500 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-28 Sold (MLS) $109,500 RASM
• 2026-05-15 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-15 Pending — RASM
• 2026-05-07 Listed $109,500 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-07 Listed $109,500 RASM
• 2018-03-26 Sold (MLS) $66,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-03-19 Sold (MLS) $66,000 RASM
• 2018-03-07 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2018-02-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2017-10-06 Price Changed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2017-07-20 Price Changed $74,900 NORTHSTARMLS as Distributed by MLS Grid
• 2017-04-28 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2017-04-28 Listed $69,900 RASM
• 2012-09-04 Sold (Public Records) $54,075 Public Records
• 2010-07-13 Listed $59,900 NORTHSTARMLS as Distributed by MLS Grid
• 2001-04-20 Sold (Public Records) $35,000 Public Records

Property tax history

+9.0%/yr

Latest (2025): $1,258 · -9.6% YoY. Source: county tax records.