28 Hemlock Cir · Babbitt, MN 55706

$72,000

2 bd · 2.0 ba · 884 sqft · SingleFamily public records · 178 Days on market

Built 1954 0.32 ac lot $81/sqft · 42% below area Est $123k · 42% under

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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 +29.4/30.0
• ARV discount +15.0/15.0
• DSCR +10.0/10.0
• 1% rule +6.9/10.0
• Livability +3.8/5.0
• Schools +3.6/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

If you’ve been waiting for the perfect fixer-upper to test your creativity and your tool collection… congratulations, you just found it. This 1 bedroom, 1¼ bath home needs work but what it lacks in polish, it more than makes up for in location, land, and pure Up North potential. Sitting on a highly desirable lot that backs right up to the woods, you’ll enjoy your own private slice of nature. Trees, trails, wildlife galore… the deer will consider you extended family. Want to wander out with a morning coffee and greet the chickadees? Go for it. Want to putter on the trails after dinner? They’re right there. Sure, the house needs some TLC… maybe a little elbow grease… maybe a contractor (or three). But the lot? The lot is the real prize. Properties like this—wooded, private, and trail-ready—don’t pop up every day. If you’ve got vision, grit, and maybe a sense of humor, this one might just be your next adventure.

Key facts

• Wooded
• 0.32 acre lot
• 2 garage spots

Tags

• BACKS RIGHT UP TO THE WOODS
• PRIVATE SLICE OF NATURE
• WOODED

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $72k.

Deal economics

• At list price, monthly cash flow is $255 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($859 rent vs $72k).
• Recommended offer: $63k (12.0% below list) — sets the bar for market timing.
• Cap rate 10.5% vs local median 2.8% in Babbitt — 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 76/100 on livability (#156 in MN, #3,426 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools C-, employment C-, amenities F.
• St. Louis County School District (rural): math 34% / reading 49% proficiency, ranked #212 of 301 in MN (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 23 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $498 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $20k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• It's been on market 178 days — a 12% lower offer ($63k) is reasonable based on typical stale-listing flexibility.
• 7 sale attempts since 17y 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 $42k; list at $72k implies a 71% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1954 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $63,360 (12.0% below list)

Questions for the listing agent

1. It's been on market 178 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1954 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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.
6. 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.
7. 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: 1.19% ✓
• Cap rate: 10.54%
• Cash-on-cash: 15.15%
• DSCR: 1.67
• GRM: 7.0

CMA / ARV

• ARV (median comp): $123,414
• List price: $72,000
• Delta: -41.66%
• Verdict: UNDERPRICED
• Comps: 8 within 1.0 mi

Show comp detail 6 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
16 Fir Cir	0.21mi	3/2.0 (+1)	912 (+3%)	5mo	$110,000	$121	76
28 Fern Ct	0.36mi	2/1.0	912 (+3%)	2mo	$150,425	$165	72
52 Birch Blvd	0.52mi	3/1.0 (+1)	864 (-2%)	13mo	$160,000	$185	52
11 Balsam Cr Cir	0.39mi	3/1.0 (+1)	964 (+9%)	12mo	$166,000	$172	47
49 Birch Blvd	0.48mi	3/2.0 (+1)	925 (+5%)	22mo	$130,000	$141	47
39 Cherry Cir	0.74mi	3/2.0 (+1)	960 (+9%)	2mo	$75,000	$78	44

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 5.8%
• Equity multiple: 1.22×
• Total profit: $4,516
• Equity at exit: $10,735

10-year hold

• IRR: 15.1%
• Equity multiple: 2.22×
• Total profit: $24,682
• Equity at exit: $6,225

Cash invested: $20,160 (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 55706

• Home prices YoY: -19.7%
• Active inventory: 23
• Price-to-rent: 7.0×

Monthly cashflow live

• Estimated rent: $859 medium
• Mortgage (P&I): −$378
• Tax from tax record: −$17 /mo · $200/yr
• Insurance: −$30
• HOA: −$0
• Vacancy / Maint / Mgmt: −$180
• Net cashflow: $255

Break-even live

Break-even rent $537

Max offer price $72,000

Occupancy floor 65%

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: $18,000
• Closing costs: $2,160
• Reserves months: —
• Total cash needed: —

Listing history 24 events

1. 2026-06-19
   days on market $72,000 Active 178 DOM
2. 2026-06-18
   days on market $72,000 Active 177 DOM
3. 2026-06-17
   days on market $72,000 Active 176 DOM
4. 2026-06-16
   days on market $72,000 Active 175 DOM
5. 2026-06-15
   days on market $72,000 Active 174 DOM
6. 2026-06-14
   days on market $72,000 Active 172 DOM
7. 2026-06-13
   days on market $72,000 Active 171 DOM
8. 2026-06-10
   days on market $72,000 Active 169 DOM
9. 2026-06-09
   days on market $72,000 Active 168 DOM
10. 2026-06-08
    days on market $72,000 Active 167 DOM
11. 2026-06-07
    days on market $72,000 Active 166 DOM
12. 2026-06-02
    days on market $72,000 Active 161 DOM
13. 2026-06-01
    days on market $72,000 Active 160 DOM
14. 2026-05-31
    days on market $72,000 Active 159 DOM
15. 2026-05-30
    days on market $72,000 Active 158 DOM
16. 2025-12-23
    listed $72,000 Active 999-char remark

    Show marketing remark (999 chars)

    If you’ve been waiting for the perfect fixer-upper to test your creativity and your tool collection… congratulations, you just found it. This 1 bedroom, 1¼ bath home needs work but what it lacks in polish, it more than makes up for in location, land, and pure Up North potential. Sitting on a highly desirable lot that backs right up to the woods, you’ll enjoy your own private slice of nature. Trees, trails, wildlife galore… the deer will consider you extended family. Want to wander out with a morning coffee and greet the chickadees? Go for it. Want to putter on the trails after dinner? They’re right there. Sure, the house needs some TLC… maybe a little elbow grease… maybe a contractor (or three). But the lot? The lot is the real prize. Properties like this—wooded, private, and trail-ready—don’t pop up every day. If you’ve got vision, grit, and maybe a sense of humor, this one might just be your next adventure.

17. 2025-12-23
    listed $72,000 Active 999-char remark

    Show marketing remark (999 chars)

    If you’ve been waiting for the perfect fixer-upper to test your creativity and your tool collection… congratulations, you just found it. This 1 bedroom, 1¼ bath home needs work but what it lacks in polish, it more than makes up for in location, land, and pure Up North potential. Sitting on a highly desirable lot that backs right up to the woods, you’ll enjoy your own private slice of nature. Trees, trails, wildlife galore… the deer will consider you extended family. Want to wander out with a morning coffee and greet the chickadees? Go for it. Want to putter on the trails after dinner? They’re right there. Sure, the house needs some TLC… maybe a little elbow grease… maybe a contractor (or three). But the lot? The lot is the real prize. Properties like this—wooded, private, and trail-ready—don’t pop up every day. If you’ve got vision, grit, and maybe a sense of humor, this one might just be your next adventure.

18. 2025-12-23
    listed $72,000 Active

    Show marketing remark (999 chars)

    If you’ve been waiting for the perfect fixer-upper to test your creativity and your tool collection… congratulations, you just found it. This 1 bedroom, 1¼ bath home needs work but what it lacks in polish, it more than makes up for in location, land, and pure Up North potential. Sitting on a highly desirable lot that backs right up to the woods, you’ll enjoy your own private slice of nature. Trees, trails, wildlife galore… the deer will consider you extended family. Want to wander out with a morning coffee and greet the chickadees? Go for it. Want to putter on the trails after dinner? They’re right there. Sure, the house needs some TLC… maybe a little elbow grease… maybe a contractor (or three). But the lot? The lot is the real prize. Properties like this—wooded, private, and trail-ready—don’t pop up every day. If you’ve got vision, grit, and maybe a sense of humor, this one might just be your next adventure.

19. 2011-04-29
    soldstatus $42,000
20. 2011-04-29
    soldstatus $42,000
21. 2011-03-29
    listed $47,000
22. 2010-06-09
    listed $47,000
23. 2010-06-09
    listed $47,000
24. 2009-06-05
    listed $59,000

ⓘ 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: $200 · $17/mo
• Projected year-2 tax: $503 · $42/mo
• Expected delta: +$303/yr (+$25/mo · 151.6%)

ⓘ 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 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥90°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,311
• − Mortgage interest: −$4,033
• − Property taxes: −$200
• − Insurance: −$360
• − Repairs & maintenance: −$825
• − Management: −$825
• − Depreciation: −$2,095
• Taxable income: $1,974
• Est. tax owed @ 24.0%: −$474
• After-tax cash flow: $2,581/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: St. Louis County School District
• NCES district ID: 2700008
• Math proficiency: 34% ▼ -7.00%
• Reading proficiency: 49% ▼ -6.00%
• Median HH income: $49,389
• Composite: 35.63/100
• National rank: #4886
• State rank: #212 of 301 in MN

Livability — Babbitt

• Score: 76/100
• State rank: #156
• US rank: #3426

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Babbitt, MN
• City population: 1,827
• Population (ZIP): 1,827

Population outlook (St. Louis County) Hauer SSP2

• Today (2025): 202,411 people
• By 2030: 203,234 · +0.4%
• By 2040: 202,520 · +0.1%
• By 2050: 200,853 · -0.8%
• By 2075: 200,943 · -0.7%
• By 2100: 192,058 · -5.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 4% Hispanic / Latino 3% Native American 1%
• Common ancestry: Portuguese 9% Romanian 6% Lithuanian 4%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 1%

Political lean MEDSL · St. Louis

• 2024 margin: D (+13.7) · D 55.9% · R 42.2% · Other 1.8%
• 2008→2024 swing: -18.8pp toward R · 2008: 32.5pp · 2024: 13.7pp
• All cycles: 2024: D+13.7 2020: D+15.6 2016: D+11.8 2012: D+29.6 2008: D+32.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -49.97%
• Current HPI: 204.0097
• 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

+22.0% since first listed

9 events — show timeline

• 2025-12-23 Listed $72,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-12-23 Listed $72,000 LSAR
• 2025-12-23 Listed $72,000 RAOR
• 2011-04-29 Sold (MLS) $42,000 RAOR
• 2011-04-29 Sold (MLS) $42,000 NORTHSTARMLS as Distributed by MLS Grid
• 2011-03-29 Listed $47,000 NORTHSTARMLS as Distributed by MLS Grid
• 2010-06-09 Listed $47,000 NORTHSTARMLS as Distributed by MLS Grid
• 2010-06-09 Listed $47,000 RAOR
• 2009-06-05 Listed $59,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-0.7%/yr

Latest (2025): $200 · +66.7% YoY. Source: county tax records.