13319 279th Ave NW

Zimmerman, MN 55398

$335,000F

3 bd · 2.0 ba · 1,104 sqft · Built 1975 · SingleFamily · Pending · 62 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,980/mo
• Mortgage (P&I): −$1,757
• Tax + insurance: −$246
• HOA: −$0
• Vac / Maint / Mgmt: −$416
• Net cashflow: $-439/mo
• Annual: $-5,266/yr
• Cap rate: 4.72%
• Cash-on-cash: -5.61%
• DSCR: 0.75
• 1% rule: 0.59%
• Cash to close: $93,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $335k.
• At list price, monthly cash flow is $-439 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $257k (23.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $198k (40.9% below list).
• It's been on market 62 days — a 6% lower offer ($315k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $198k (40.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#134 in MN, #3,004 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, health & safety A+; Watch: amenities F, commute F.
• Princeton Public School District (town): math 41% / reading 53% proficiency, ranked #141 of 301 in MN (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Princeton Intermediate School (math 46% / reading 48%, grade D-, #492 of 857 statewide, top 61%, 746 students, 41% FRL); Princeton Middle School (math 36% / reading 55%, grade D+, #106 of 258 statewide, top 43%, 732 students, 38% FRL); Princeton High School (math 47% / reading 62%, grade C-, #87 of 471 statewide, top 22%, 979 students, 33% FRL) — zoned schools average 37% FRL vs 22% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 181 active listings in the ZIP; solid renter incomes; 334 units permitted in Sherburne County in 2024 (58 in 5+ unit buildings).
• 3 sale attempts since 5y 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 $175k; list at $335k implies a 91% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 4.7% vs local median 3.1% in Zimmerman — 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 62 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.