720 6th Dr NW · Perham, MN 56573

$289,000

4 bd · 2.0 ba · 2,300 sqft · SingleFamily public records · 30 Days on market

Built 1995 0.33 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 +25.1/30.0
• DSCR +8.2/10.0
• ARV discount +7.5/15.0
• 1% rule +5.8/10.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Welcome to this beautifully maintained 4-bed, 2-bath home on a spacious corner lot in sought-after Westwind. This inviting one-story features hardwood floors throughout the main level and a functional layout. Main floor offers 2 bedrooms, full bath, formal dining, and kitchen with newer appliances and gas range. Main-floor laundry hookups add flexibility. Finished lower level offers 2 additional bedrooms and a full bath. One oversized 24x12 room adds flexibility for a family room, office, or guest suite. Notable updates include a furnace replaced in September and central air. Exterior features vinyl siding, attached 2-stall garage, and a spacious yard. Conveniently located near parks, walki

Key facts

• Newer appliances
• Functional layout
• Hardwood floors

Tags

• HARDWOOD FLOORS
• FUNCTIONAL LAYOUT
• NEWER APPLIANCES
• GAS RANGE
• MAIN-FLOOR LAUNDRY HOOKUPS
• FINISHED LOWER LEVEL

Property features AI

Exterior

• Parking: Attached garage (2 cars)
• Utilities: City water connected; City sewer connected; Electric and natural gas service
• Home design: Residential property; One level (with lower/finished basement); Approximately 2,300 total living area
• Construction: Block foundation
• Exterior features: Vinyl exterior; Corner lot

Interior

• Kitchen: Dishwasher; Range; Refrigerator
• Bedrooms: 4 bedrooms (mix of main and lower levels)
• Bathrooms: 2 full bathrooms (one on main floor, one in finished basement)
• Heating & cooling: Forced air heating; Baseboard heating; Central air conditioning
• Interior features: Finished full basement with block foundation; Separate/formal dining room; Mud room
• Laundry & utility: Washer and dryer (laundry located in basement); Utility room in lower level

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $289k.

Deal economics

• At list price, monthly cash flow is $639 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $289k).
• Recommended offer: $285k (1.5% below list) — sets the bar for market timing.
• Cap rate 8.9% vs local median 6.0% in Perham — 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 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Heart of The Lake Elementary (math 54% / reading 51%, grade C-, #364 of 857 statewide, top 43%, 575 students, 47% FRL); Prairie Wind Middle (math 44% / reading 59%, grade C, #65 of 258 statewide, top 26%, 515 students, 38% FRL); Perham Senior High (math 37% / reading 62%, grade D, #143 of 471 statewide, top 33%, 505 students, 36% FRL).
• Market conditions: 93 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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 $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 30 days — a 2% lower offer ($285k) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 26y 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.
• Current owner paid $183k; list at $289k implies a 58% gain — meaningful room to come down on a strong offer.

Recommended offer $284,665 (1.5% below list)

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. Schools are B-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?
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: 1.08% ✓
• Cap rate: 8.94%
• Cash-on-cash: 9.47%
• DSCR: 1.42
• GRM: 7.7

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: -2.0%
• Equity multiple: 0.92×
• Total profit: $-6,212
• Equity at exit: $43,091

10-year hold

• IRR: 7.6%
• Equity multiple: 1.58×
• Total profit: $46,739
• Equity at exit: $24,987

Cash invested: $80,920 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 93
• Price-to-rent: 7.7×

Monthly cashflow live

• Estimated rent: $3,125 medium
• Mortgage (P&I): −$1,516
• Tax from tax record: −$194 /mo · $2,330/yr
• Insurance: −$120
• HOA: −$0
• Vacancy / Maint / Mgmt: −$656
• Net cashflow: $639

Break-even live

Break-even rent $2,317

Max offer price $289,000

Occupancy floor 75%

Sensitivity live

Price	-10% $802	-5% $720	+0% $639	+5% $557	+10% $475
Rent	-10% $392	-5% $515	+0% $639	+5% $762	+10% $885
Rate	-1.0pp $784	-0.5pp $712	base $639	+0.5pp $564	+1.0pp $488

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: $72,250
• Closing costs: $8,670
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
812 7th St SW Unit A Perham, MN	3.0	2.0	1602	$3,750	$2.34	45d	1	1.15mi
812 7th St SW Unit B Perham, MN	3.0	2.0	1602	$2,500	$1.56	45d	1	1.15mi

Listing history 34 events

1. 2026-06-21
   days on market $289,000 Active 30 DOM
2. 2026-06-21
   days on market $289,000 Active 29 DOM
3. 2026-06-18
   days on market $289,000 Active 27 DOM
4. 2026-06-17
   days on market $289,000 Active 26 DOM
5. 2026-06-16
   days on market $289,000 Active 25 DOM
6. 2026-06-15
   days on market $289,000 Active 24 DOM
7. 2026-06-13
   days on market $289,000 Active 22 DOM
8. 2026-06-12
   days on market $289,000 Active 21 DOM
9. 2026-06-09
   days on market $289,000 Active 18 DOM
10. 2026-06-08
    days on market $289,000 Active 17 DOM
11. 2026-06-07
    days on market $289,000 Active 16 DOM
12. 2026-06-07
    days on market $289,000 Active 15 DOM
13. 2026-06-04
    days on market $289,000 Active 12 DOM
14. 2026-06-02
    days on market $289,000 Active 11 DOM
15. 2026-06-01
    days on market $289,000 Active 10 DOM
16. 2026-05-31
    days on market $289,000 Active 9 DOM
17. 2026-05-31
    days on market $289,000 Active 8 DOM
18. 2026-05-22
    listed $289,000 Active
19. 2026-02-16
    historical
20. 2026-02-02
    historical
21. 2026-02-01
    listed $299,000 Active
22. 2025-10-02
    price $299,000
23. 2025-08-01
    listed $310,000 Active
24. 2018-10-08
    soldstatus $183,000
25. 2018-10-01
    soldstatus $183,000
26. 2018-06-12
    listed $198,000
27. 2013-10-10
    soldstatus $146,700
28. 2013-10-10
    soldstatus $146,700
29. 2013-08-20
    listed $149,000
30. 2013-08-20
    listed $149,000
31. 2007-03-23
    soldstatus $129,000
32. 2001-08-04
    soldstatus $94,500
33. 2001-05-01
    listed $96,500
34. 2000-01-19
    listed $99,500

ⓘ 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: $2,330 · $194/mo
• Projected year-2 tax: $2,783 · $232/mo
• Expected delta: +$453/yr (+$38/mo · 19.5%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥97°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: $37,500
• − Mortgage interest: −$16,188
• − Property taxes: −$2,330
• − Insurance: −$1,445
• − Repairs & maintenance: −$3,000
• − Management: −$3,000
• − Depreciation: −$8,407
• Taxable income: $3,129
• Est. tax owed @ 24.0%: −$751
• After-tax cash flow: $6,912/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: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Perham, MN
• Population (ZIP): 6,868

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 (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

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: ▼ -42.48%
• Current HPI: 225.7071
• 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

+190.5% since first listed

17 events — show timeline

• 2026-05-22 Listed $289,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-16 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-01 Listed $299,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-10-02 Price Changed $299,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-08-01 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-10-08 Sold (Public Records) $183,000 Public Records
• 2018-10-01 Sold (MLS) $183,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-06-12 Listed $198,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-10-10 Sold (MLS) $146,700 NORTHSTARMLS as Distributed by MLS Grid
• 2013-10-10 Sold (MLS) $146,700 NORTHSTARMLS as Distributed by MLS Grid
• 2013-08-20 Listed $149,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-08-20 Listed $149,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-03-23 Sold (Public Records) $129,000 Public Records
• 2001-08-04 Sold (MLS) $94,500 NORTHSTARMLS as Distributed by MLS Grid
• 2001-05-01 Listed $96,500 NORTHSTARMLS as Distributed by MLS Grid
• 2000-01-19 Listed $99,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+5.5%/yr

Latest (2025): $2,330 · +2.2% YoY. Source: county tax records.