614 Andrews Ave

Breckenridge, MN 56520

$115,500F

2 bd · 2.0 ba · 996 sqft · Built 1948 · SingleFamily · Pending · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $796/mo
• Mortgage (P&I): −$606
• Tax + insurance: −$134
• HOA: −$0
• Vac / Maint / Mgmt: −$167
• Net cashflow: $-111/mo
• Annual: $-1,327/yr
• Cap rate: 5.14%
• Cash-on-cash: -4.10%
• DSCR: 0.82
• 1% rule: 0.69%
• Cash to close: $32,340

Investor read

• This is a 2-bed/2.0-bath single-family listed at $116k.
• At list price, monthly cash flow is $-111 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $96k (16.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $80k (31.1% below list).
• It's been on market 31 days — a 3% lower offer ($112k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $80k (31.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $799 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#232 in MN, #4,940 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D, amenities F, commute F.
• Breckenridge Public School District (town): math 42% / reading 44% proficiency, ranked #199 of 301 in MN (top 66%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Breckenridge Elementary (math 47% / reading 52%, grade D, #423 of 857 statewide, top 55%, 279 students, 56% FRL); Breckenridge Middle (math 22% / reading 32%, grade F, #214 of 258 statewide, top 83%, 108 students, 52% FRL); Breckenridge Senior High (math 54% / reading 32%, grade F, #213 of 471 statewide, top 45%, 227 students, 36% FRL).
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 37 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 15 units permitted in Wilkin County in 2024 (0 in 5+ unit buildings).
• Wilkin County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 3y 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 $88k; 32% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.1% vs local median 2.9% in Breckenridge — 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.

Questions for listing agent

• 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?
• It's been on market 31 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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?
• 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.