844 S 1st Ave

Gibbon, MN 55335

$115,000C+

4 bd · 2.0 ba · 2,810 sqft · Built 1915 · SingleFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,359/mo
• Mortgage (P&I): −$603
• Tax + insurance: −$299
• HOA: −$0
• Vac / Maint / Mgmt: −$285
• Net cashflow: $172/mo
• Annual: $2,066/yr
• Cap rate: 8.09%
• Cash-on-cash: 6.42%
• DSCR: 1.29
• 1% rule: 1.18%
• Cash to close: $32,200

Investor read

• This is a 4-bed/2.0-bath single-family listed at $115k.
• At list price, monthly cash flow is $172 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $115k).
• It's been on market 18 days — a 2% lower offer ($113k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $113k (1.5% below list) — sets the bar for market timing.
• In year one you build about $7k of equity ($795 loan paydown + $6k appreciation (5.3% local appreciation)).
• Location reads 66/100 on livability (#503 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety D+, amenities F.
• G.F.W. (rural): math 40% / reading 48% proficiency, ranked #186 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: property tax is 2.6% of price; built in 1915 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 8 active listings in the ZIP; 27 units permitted in Sibley County in 2024 (0 in 5+ unit buildings).
• Sibley County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $85k; 35% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (5.3% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1915 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.
• 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.