1221 Madison Ave #218 · Detroit Lakes, MN 56501

$122,000

2 bd · 1.0 ba · 792 sqft · Condo public records · 14 Days on market

Built 1971 $250/mo HOA · 9% of rent

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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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.0/10.0
• Livability +4.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Well cared for 2 bedroom, 1 bathroom condo. This would be a great low maintenance home for yourself or a perfect investment property. Unit includes a detached one stall garage and additional hallway storage. This is conveniently located close to all Detroit Lakes has to offer. Agent related to Seller

Key facts

• Easy access to parks
• $250 HOA
• Garage

Tags

• DETACHED SINGLE-STALL GARAGE
• ADDITIONAL HALLWAY STORAGE
• EASY ACCESS TO SHOPPING
• EASY ACCESS TO DINING
• EASY ACCESS TO PARKS
• EASY ACCESS TO AMENITIES

Property features AI

Finance

• Other: Living area 792 square feet; Lot about 0.06 acres
• HOA & community: Madison Manor Condo association; Monthly HOA fee of $250; HOA covers heating, lawn care, and snow removal; Association laundry amenity

Exterior

• Parking: 1-car garage
• Utilities: City water connected; City sewer connected; Natural gas
• Home design: Attached residential property; One level
• Construction: Block foundation
• Exterior features: Stone exterior; City street frontage; Publicly maintained road

Interior

• Kitchen: Microwave, Range, Refrigerator
• Bedrooms: 2 bedrooms on the main level
• Bathrooms: 1 full bathroom on the main level
• Heating & cooling: Boiler heating; Wall and window air conditioning units
• Interior features: Microwave, Range, Refrigerator; Informal dining area / kitchen-dining room; Block basement
• Laundry & utility: Common area laundry

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath condo listed at $122k.

Deal economics

• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $122k).
• Cap rate 16.9% vs local median 5.2% in Detroit Lakes — 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 80/100 on livability (#78 in MN, #1,847 nationally) — a professional / high-income tenant draw. Strengths: housing A+, health & safety A+, cost of living A; Watch: amenities F, commute F.
• Detroit Lakes Public School District (town): math 44% / reading 50% proficiency, ranked #155 of 301 in MN (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 307 active listings in the ZIP; 156 units permitted in Becker County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $843 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Becker County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 2y 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

• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $122,000

Questions for the listing agent

1. Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 2.17% ✓
• Cap rate: 16.91%
• Cash-on-cash: 37.92%
• DSCR: 2.69
• GRM: 3.8

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: 34.0%
• Equity multiple: 2.44×
• Total profit: $49,124
• Equity at exit: $18,191

10-year hold

• IRR: 40.9%
• Equity multiple: 4.86×
• Total profit: $131,889
• Equity at exit: $10,548

Cash invested: $34,160 (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 56501

• Active inventory: 307
• Price-to-rent: 3.8×

Monthly cashflow live

• Estimated rent: $2,649 medium
• Mortgage (P&I): −$640
• Tax from tax record: −$73 /mo · $874/yr
• Insurance: −$51
• HOA: −$250
• Vacancy / Maint / Mgmt: −$556
• Net cashflow: $1,079

Break-even live

Break-even rent $1,283

Max offer price $122,000

Occupancy floor 54%

Sensitivity live

Price	-10% $1,148	-5% $1,114	+0% $1,079	+5% $1,045	+10% $1,010
Rent	-10% $870	-5% $975	+0% $1,079	+5% $1,184	+10% $1,289
Rate	-1.0pp $1,141	-0.5pp $1,110	base $1,079	+0.5pp $1,048	+1.0pp $1,016

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: $30,500
• Closing costs: $3,660
• Reserves months: —
• Total cash needed: —

HOA detail condo

• Monthly dues: $250 · $3,000/yr
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 15 events

1. 2026-06-07
   statusdays on market $122,000 Pending 14 DOM
2. 2026-06-04
   days on market $122,000 Contingent - Other 12 DOM
3. 2026-06-02
   days on market $122,000 Contingent - Other 11 DOM
4. 2026-06-01
   days on market $122,000 Contingent - Other 10 DOM
5. 2026-05-31
   days on market $122,000 Contingent - Other 9 DOM
6. 2026-05-31
   days on market $122,000 Contingent - Other 8 DOM
7. 2026-05-21
   listed $122,000 Active
8. 2024-10-17
   soldstatus $107,000
9. 2024-10-15
   soldstatus $107,000 Sold 301-char remark

   Show marketing remark (301 chars)

   Well cared for 2 bedroom, 1 bathroom condo. This would be a great low maintenance home for yourself or a perfect investment property. Unit includes a detached one stall garage and additional hallway storage. This is conveniently located close to all Detroit Lakes has to offer. Agent related to Seller

10. 2024-10-10
    status Pending 301-char remark

    Show marketing remark (301 chars)

    Well cared for 2 bedroom, 1 bathroom condo. This would be a great low maintenance home for yourself or a perfect investment property. Unit includes a detached one stall garage and additional hallway storage. This is conveniently located close to all Detroit Lakes has to offer. Agent related to Seller

11. 2024-09-25
    price $114,000 301-char remark

    Show marketing remark (301 chars)

    Well cared for 2 bedroom, 1 bathroom condo. This would be a great low maintenance home for yourself or a perfect investment property. Unit includes a detached one stall garage and additional hallway storage. This is conveniently located close to all Detroit Lakes has to offer. Agent related to Seller

12. 2024-09-10
    listed $117,000 Active 301-char remark

    Show marketing remark (301 chars)

    Well cared for 2 bedroom, 1 bathroom condo. This would be a great low maintenance home for yourself or a perfect investment property. Unit includes a detached one stall garage and additional hallway storage. This is conveniently located close to all Detroit Lakes has to offer. Agent related to Seller

13. 2002-05-14
    soldstatus $50,100
14. 1998-05-07
    soldstatus $38,000
15. 1995-08-15
    soldstatus $37,500

ⓘ 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: $874 · $73/mo
• Projected year-2 tax: $1,120 · $93/mo
• Expected delta: +$246/yr (+$21/mo · 28.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥96°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $31,790
• − Mortgage interest: −$6,834
• − Property taxes: −$874
• − Insurance: −$610
• − Repairs & maintenance: −$2,543
• − Management: −$2,543
• − HOA: −$3,000
• − Depreciation: −$3,549
• Taxable income: $11,837
• Est. tax owed @ 24.0%: −$2,841
• After-tax cash flow: $10,112/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: Detroit Lakes Public School District
• NCES district ID: 2710230
• Math proficiency: 44% ▼ -11.00%
• Reading proficiency: 50% ▼ -11.00%
• Median HH income: $50,571
• Composite: 40.33/100
• National rank: #3746
• State rank: #155 of 301 in MN

Livability — Detroit Lakes

• Score: 80/100
• State rank: #78
• US rank: #1847

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit Lakes, MN
• City population: 18,239
• Population (ZIP): 18,239

Population outlook (Becker County) Hauer SSP2

• Today (2025): 34,604 people
• By 2030: 35,095 · +1.4%
• By 2040: 35,691 · +3.1%
• By 2050: 35,869 · +3.7%
• By 2075: 36,103 · +4.3%
• By 2100: 32,798 · -5.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 5% Native American 2%
• Common ancestry: Portuguese 25% Scottish 4% Lithuanian 3%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Becker

• 2024 margin: Solid R (+33.1) · D 32.7% · R 65.8% · Other 1.5%
• 2008→2024 swing: -26.3pp toward R · 2008: -6.9pp · 2024: -33.1pp
• All cycles: 2024: R+33.1 2020: R+30.1 2016: R+33.2 2012: R+14.6 2008: R+6.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -222.40%
• Current HPI: 217.4973
• 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

+225.3% since first listed

9 events — show timeline

• 2026-05-21 Listed $122,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-10-17 Sold (Public Records) $107,000 Public Records
• 2024-10-15 Sold (MLS) $107,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-10-10 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2024-09-25 Price Changed $114,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-09-10 Listed $117,000 NORTHSTARMLS as Distributed by MLS Grid
• 2002-05-14 Sold (Public Records) $50,100 Public Records
• 1998-05-07 Sold (Public Records) $38,000 Public Records
• 1995-08-15 Sold (Public Records) $37,500 Public Records

Property tax history

+6.8%/yr

Latest (2025): $874 · +3.6% YoY. Source: county tax records.