703 S 3rd St · Ellendale, MN 56026

$289,900

4 bd · 2.0 ba · 1,820 sqft · SingleFamily public records · 80 Days on market

Built 1974 0.31 ac lot $159/sqft · 14% below area Est $338k · 14% under

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Why this score? — see what drove the D 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).

• ARV discount +13.9/15.0
• Appreciation +10.0/10.0
• Cash flow +5.7/30.0
• Schools +3.5/10.0
• Livability +3.3/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• 1% rule +0.7/10.0
• DSCR +0.1/10.0

Listing remarks MLS

Welcome this beautifully remodeled 4-bedroom, 1.75-bath home that's move-in-ready. The thoughtfully redesigned kitchen features new countertops with bar seating, stainless steel appliances, a deep sink, and a smart layout perfect for everyday functionality and entertaining. Both bathrooms have been tastefully updated, including a full bath with a double vanity and custom-tiling. Enjoy several fresh updates throughout the home, including luxury vinyl plank flooring, new carpet, fresh paint, and modern lighting that brightens the space. A new patio door provides easy access to outdoor living while leaving the opportunity to update the space to your liking. Enjoy an attached two car garage as well.

Key facts

• Remodeled kitchen
• Deep sink
• Updated bathrooms

Tags

• REMODELED KITCHEN
• NEW COUNTERTOPS
• BAR SEATING
• STAINLESS STEEL APPLIANCES
• DEEP SINK
• UPDATED BATHROOMS

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $290k.

Deal economics

• At list price, monthly cash flow is $-597 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $184k (36.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (42.9% below list).
• Recommended offer: $165k (42.9% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 66/100 on livability (#496 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• Nrheg School District (rural): math 40% / reading 40% proficiency, ranked #216 of 301 in MN (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Nrheg Elementary (math 52% / reading 42%, grade D-, #492 of 857 statewide, top 61%, 363 students, 52% FRL); Nrheg Secondary (math 27% / reading 40%, grade F, #329 of 471 statewide, top 70%, 455 students, 42% FRL) — zoned schools average 47% FRL vs 25% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 14 active listings in the ZIP; 28 units permitted in Steele County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $31k of equity ($2k loan paydown + $29k appreciation (10.0% local appreciation)).
• Steele County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 2, paydown + projected appreciation supports a ~$50k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 80 days — a 6% lower offer ($273k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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 $187k; list at $290k implies a 55% gain — meaningful room to come down on a strong offer.

Recommended offer $165,467 (42.9% below list)

Questions for the listing agent

1. 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?
2. It's been on market 80 days. Have you received any prior offers? Is the seller open to a 43% concession, seller financing, or rate buy-down credit?
3. Built in 1974 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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: 0.57% ✗
• Cap rate: 3.82%
• Cash-on-cash: -8.82%
• DSCR: 0.61
• GRM: 14.6

CMA / ARV

• ARV (median comp): $338,048
• List price: $289,900
• Delta: -14.24%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
5424 Thompson Dr	0.74mi	3/3.0 (-1)	2,076 (+14%)	7mo	$350,000	$169	27

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: 18.1%
• Equity multiple: 2.48×
• Total profit: $119,847
• Equity at exit: $261,165

10-year hold

• IRR: 16.9%
• Equity multiple: 5.72×
• Total profit: $382,743
• Equity at exit: $563,212

Cash invested: $81,172 (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 56026

• Home prices YoY: 6.1%
• Active inventory: 14
• Price-to-rent: 14.6×

Monthly cashflow live

• Estimated rent: $1,655 medium
• Mortgage (P&I): −$1,520
• Tax from tax record: −$263 /mo · $3,154/yr
• Insurance: −$121
• HOA: −$0
• Vacancy / Maint / Mgmt: −$347
• Net cashflow: $-597

Break-even live

Break-even rent $2,410

Max offer price $184,490

Occupancy floor —

Sensitivity live

Price	-10% $-433	-5% $-515	+0% $-597	+5% $-679	+10% $-761
Rent	-10% $-727	-5% $-662	+0% $-597	+5% $-531	+10% $-466
Rate	-1.0pp $-451	-0.5pp $-523	base $-597	+0.5pp $-672	+1.0pp $-748

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: $72,475
• Closing costs: $8,697
• Reserves months: —
• Total cash needed: —

Listing history 20 events

1. 2026-06-22
   days on market $289,900 Active 80 DOM
2. 2026-06-19
   days on market $289,900 Active 77 DOM
3. 2026-06-18
   days on market $289,900 Active 76 DOM
4. 2026-06-17
   days on market $289,900 Active 75 DOM
5. 2026-06-16
   days on market $289,900 Active 74 DOM
6. 2026-06-15
   days on market $289,900 Active 73 DOM
7. 2026-06-14
   days on market $289,900 Active 71 DOM
8. 2026-06-12
   days on market $289,900 Active 70 DOM
9. 2026-06-09
   days on market $289,900 Active 67 DOM
10. 2026-06-08
    days on market $289,900 Active 66 DOM
11. 2026-06-07
    pricedays on market $289,900 Active 65 DOM
12. 2026-06-02
    days on market $297,000 Active 60 DOM
13. 2026-06-01
    days on market $297,000 Active 59 DOM
14. 2026-05-31
    days on market $297,000 Active 58 DOM
15. 2026-05-30
    days on market $297,000 Active 57 DOM
16. 2026-04-03
    listed $297,000 Active 705-char remark

    Show marketing remark (705 chars)

    Welcome this beautifully remodeled 4-bedroom, 1.75-bath home that's move-in-ready. The thoughtfully redesigned kitchen features new countertops with bar seating, stainless steel appliances, a deep sink, and a smart layout perfect for everyday functionality and entertaining. Both bathrooms have been tastefully updated, including a full bath with a double vanity and custom-tiling. Enjoy several fresh updates throughout the home, including luxury vinyl plank flooring, new carpet, fresh paint, and modern lighting that brightens the space. A new patio door provides easy access to outdoor living while leaving the opportunity to update the space to your liking. Enjoy an attached two car garage as well.

17. 2025-12-17
    soldstatus $187,000
18. 2025-11-20
    soldstatus $187,000 Sold 648-char remark

    Show marketing remark (648 chars)

    This 4-bedroom home in Ellendale offers 1,820 finished square feet of well-laid-out living space, featuring 1 ¾ bathrooms, a 2-car attached garage, and a spacious deck for outdoor enjoyment. While the property does need some repairs, it has great potential and a solid foundation to build on. Several new windows have already been installed, and additional new windows are included and ready for installation—currently stored in the garage. With its traditional layout and quiet neighborhood setting, this home presents a fantastic opportunity to add your personal touch and create something truly special. Schedule your showing today!

19. 2025-10-01
    status Pending 648-char remark

    Show marketing remark (648 chars)

    This 4-bedroom home in Ellendale offers 1,820 finished square feet of well-laid-out living space, featuring 1 ¾ bathrooms, a 2-car attached garage, and a spacious deck for outdoor enjoyment. While the property does need some repairs, it has great potential and a solid foundation to build on. Several new windows have already been installed, and additional new windows are included and ready for installation—currently stored in the garage. With its traditional layout and quiet neighborhood setting, this home presents a fantastic opportunity to add your personal touch and create something truly special. Schedule your showing today!

20. 2025-09-21
    listed $187,000 Active 648-char remark

    Show marketing remark (648 chars)

    This 4-bedroom home in Ellendale offers 1,820 finished square feet of well-laid-out living space, featuring 1 ¾ bathrooms, a 2-car attached garage, and a spacious deck for outdoor enjoyment. While the property does need some repairs, it has great potential and a solid foundation to build on. Several new windows have already been installed, and additional new windows are included and ready for installation—currently stored in the garage. With its traditional layout and quiet neighborhood setting, this home presents a fantastic opportunity to add your personal touch and create something truly special. Schedule your showing today!

ⓘ 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: $3,154 · $263/mo
• Projected year-2 tax: $3,200 · $267/mo
• Expected delta: +$46/yr (+$4/mo · 1.5%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 24% 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: $19,856
• − Mortgage interest: −$16,239
• − Property taxes: −$3,154
• − Insurance: −$1,450
• − Repairs & maintenance: −$1,588
• − Management: −$1,588
• − Depreciation: −$8,433
• Taxable loss: −$12,597
• Est. tax savings @ 24.0%: +$3,023
• After-tax cash flow: $-4,137/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: Nrheg School District
• NCES district ID: 2700089
• Math proficiency: 40% ▼ -16.00%
• Reading proficiency: 40% ▼ -18.00%
• Median HH income: $56,051
• Composite: 35.08/100
• National rank: #5024
• State rank: #216 of 301 in MN

Livability — Ellendale

• Score: 66/100
• State rank: #496
• US rank: #11947

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ellendale, MN
• Population (ZIP): 1,978

Population outlook (Steele County) Hauer SSP2

• Today (2025): 36,618 people
• By 2030: 36,195 · -1.2%
• By 2040: 34,882 · -4.7%
• By 2050: 33,052 · -9.7%
• By 2075: 29,692 · -18.9%
• By 2100: 25,581 · -30.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 7% Two or more races 6%
• Hispanic origin (detail): Mexican 5%
• Common ancestry: Portuguese 23% Iranian 3% Romanian 2%
• Foreign-born: 0%
• Languages at home: 97% English-only · Spanish 2%

Political lean MEDSL · Steele

• 2024 margin: Strong R (+24.5) · D 36.8% · R 61.2% · Other 2.0%
• 2008→2024 swing: -19.1pp toward R · 2008: -5.3pp · 2024: -24.5pp
• All cycles: 2024: R+24.5 2020: R+22.4 2016: R+26.0 2012: R+6.3 2008: R+5.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 14.41%
• Current HPI: 249.6733
• 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

+58.8% since first listed

5 events — show timeline

• 2026-04-03 Listed $297,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-12-17 Sold (Public Records) $187,000 Public Records
• 2025-11-20 Sold (MLS) $187,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-10-01 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-21 Listed $187,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.1%/yr

Latest (2025): $3,154 · +11.8% YoY. Source: county tax records.