104 6th Ave SW · Pelican Rapids, MN 56572

$154,900

4 bd · 2.0 ba · 576 sqft · SingleFamily public records · 3 Days on market

Built 1900 0.26 ac lot

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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 +20.2/30.0
• ARV discount +7.5/15.0
• DSCR +6.4/10.0
• 1% rule +4.5/10.0
• Schools +4.3/10.0
• Livability +3.9/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

4 bed, 2 bath 1¾-story home in Pelican Rapids with an open kitchen and updates throughout that give it a clean, move-in ready feel. The layout is comfortable and functional with good living space, a nice-sized yard, and a one-stall detached garage. Conveniently located near the school, this home offers easy everyday living with space, beautiful updates, and a great location.

Key facts

• 0.26 acre lot
• Garage
• Built 1900

Property features AI

Exterior

• Parking: Detached or attached 1-car garage
• Utilities: City water connected; City sewer connected; Natural gas
• Home design: Residential property; One-and-one-half story home; Accessibility features present
• Construction: Block foundation
• Exterior features: Vinyl exterior; Lot measures approximately 75 x 150

Interior

• Kitchen: Kitchen on main level
• Bedrooms: 4 bedrooms (three bedrooms on the upper level; one bedroom on the main level)
• Bathrooms: Two three-quarter bathrooms
• Heating & cooling: Hot water and radiant heating; Ductless mini-split and window air conditioning units
• Interior features: Partially finished basement; Dishwasher, Dryer, Microwave, Range, Refrigerator, Washer
• Laundry & utility: Main-level laundry room; Utility room

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $155k.

Deal economics

• At list price, monthly cash flow is $195 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $147k (5.1% below list).
• Recommended offer: $147k (5.1% below list) — sets the bar for 1% rule.
• Cap rate 7.8% vs local median 1.4% in Pelican Rapids — 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 78/100 on livability (#114 in MN, #2,581 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Pelican Rapids Public School District (rural): math 45% / reading 54% proficiency, ranked #123 of 301 in MN (top 41%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Viking Elementary School (math 58% / reading 62%, grade B-, #209 of 857 statewide, top 25%, 460 students, 61% FRL); Pelican Rapids Alt Center Mid-Level (math 10% / reading 10%); Pelican Rapids Secondary (math 32% / reading 47%, grade F, #246 of 471 statewide, top 59%, 405 students, 56% FRL) — zoned schools average 58% FRL vs 39% district-wide (20 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 36% at this address vs 50% district-wide (-13 pts) — the specific schools serving this property underperform the Pelican Rapids Public School District average; the district grade overstates school quality for this exact location.
• Market conditions: 175 active listings in the ZIP; 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 $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $40k; list at $155k implies a 287% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $147,065 (5.1% below list)

Questions for the listing agent

1. Built in 1900 — 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: 0.95% ✗
• Cap rate: 7.80%
• Cash-on-cash: 5.39%
• DSCR: 1.24
• GRM: 8.8

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: -8.0%
• Equity multiple: 0.71×
• Total profit: $-12,735
• Equity at exit: $23,096

10-year hold

• IRR: 1.5%
• Equity multiple: 1.11×
• Total profit: $4,717
• Equity at exit: $13,393

Cash invested: $43,372 (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 56572

• Home prices YoY: -14.1%
• Active inventory: 175
• Price-to-rent: 8.8×

Monthly cashflow live

• Estimated rent: $1,471 medium
• Mortgage (P&I): −$812
• Tax from tax record: −$90 /mo · $1,082/yr
• Insurance: −$65
• HOA: −$0
• Vacancy / Maint / Mgmt: −$309
• Net cashflow: $195

Break-even live

Break-even rent $1,224

Max offer price $154,900

Occupancy floor 82%

Sensitivity live

Price	-10% $282	-5% $239	+0% $195	+5% $151	+10% $107
Rent	-10% $79	-5% $137	+0% $195	+5% $253	+10% $311
Rate	-1.0pp $273	-0.5pp $234	base $195	+0.5pp $155	+1.0pp $114

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: $38,725
• Closing costs: $4,647
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-06-19
   days on market $154,900 Active 3 DOM
2. 2026-06-18
   days on market $154,900 Active 2 DOM
3. 2026-06-17
   remarks 377-char remark
4. 2026-06-17
   listed $154,900 Active 1 DOM

ⓘ 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: $1,082 · $90/mo
• Projected year-2 tax: $1,408 · $117/mo
• Expected delta: +$326/yr (+$27/mo · 30.2%)

ⓘ 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 2/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥96°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: $17,648
• − Mortgage interest: −$8,677
• − Property taxes: −$1,082
• − Insurance: −$774
• − Repairs & maintenance: −$1,412
• − Management: −$1,412
• − Depreciation: −$4,506
• Taxable loss: −$215
• Est. tax savings @ 24.0%: +$52
• After-tax cash flow: $2,389/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: Pelican Rapids Public School District
• NCES district ID: 2728170
• Math proficiency: 45% ▼ -11.00%
• Reading proficiency: 54% ▼ -3.00%
• Median HH income: $51,933
• Composite: 42.52/100
• National rank: #3203
• State rank: #123 of 301 in MN

Livability — Pelican Rapids

• Score: 78/100
• State rank: #114
• US rank: #2581

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: Pelican Rapids, MN
• Population (ZIP): 5,900

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 (78%)
• Race & ethnicity: White 78% Hispanic / Latino 13% Two or more races 8% Black 4%
• Hispanic origin (detail): Mexican 9% Puerto Rican 1%
• Common ancestry: Portuguese 30% Scottish 2% Romanian 2%
• Foreign-born: 9% · Canada
• Languages at home: 87% English-only · Spanish 7% Russian/Polish/Slavic 1% German/W. Germanic 0%

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: ▼ -37.55%
• Current HPI: 229.1081
• 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

+287.2% since first listed

2 events — show timeline

• 2026-06-16 Listed $154,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-08-30 Sold (Public Records) $40,000 Public Records

Property tax history

+6.7%/yr

Latest (2025): $1,082 · -2.3% YoY. Source: county tax records.