315 2nd St SE · Harmony, MN 55939

$40,000

3 bd · None ba · 1,280 sqft · SingleFamily · 67 Days on market

Built 1920 9,801 sqft lot ↓ 20% since listing

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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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.9/5.0
• Schools +3.4/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

1920s-era home with potential for the right buyer. This property will require significant renovation. Utilities are currently off. Whether you’re looking for a major rehab project or exploring a fresh start, this property offers an opportunity to bring new life to a classic home. Sold as-is.

Key facts

• 9,801 sq ft lot
• Built 1920
• Listed 67 days

Property features AI

Finance

• Financial info: Tax information provided (details excluded per instructions)

Exterior

• Parking: On-street parking only
• Utilities: City water connected; City sewer connected; Natural gas
• Home design: Residential property; Two levels; Entry level information not provided; Facing direction not provided
• Construction: Block foundation; Year built not provided; Construction materials: Wood
• Exterior features: Wood exterior; Corner lot (82 x 120)

Interior

• Bedrooms: 3 bedrooms
• Heating & cooling: Forced air heating; No central air
• Interior features: Block foundation basement (unfinished)

What this means for you Summary

Snapshot

• This is a 3-bed/?-bath single-family listed at $40k.

Deal economics

• At list price, monthly cash flow is $663 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Recommended offer: $38k (6.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 77/100 on livability (#122 in MN, #2,818 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Fillmore Central (rural): math 33% / reading 47% proficiency, ranked #223 of 301 in MN (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 6 active listings in the ZIP; 65 units permitted in Fillmore County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $4k of equity ($277 loan paydown + $4k appreciation (10.0% local appreciation)).
• Fillmore County population projected at -15% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 67 days — a 6% lower offer ($38k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $37,600 (6.0% below list)

Questions for the listing agent

1. It's been on market 67 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1920 — 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: 2.93% ✓
• Cap rate: 26.19%
• Cash-on-cash: 71.05%
• DSCR: 4.16
• GRM: 2.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 81.9%
• Equity multiple: 6.72×
• Total profit: $64,030
• Equity at exit: $36,035

10-year hold

• IRR: 76.2%
• Equity multiple: 14.87×
• Total profit: $155,363
• Equity at exit: $77,711

Cash invested: $11,200 (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 55939

• Home prices YoY: 8.5%
• Active inventory: 6
• Price-to-rent: 2.8×

Monthly cashflow live

• Estimated rent: $1,172 medium
• Mortgage (P&I): −$210
• Tax from tax record: −$36 /mo · $432/yr
• Insurance: −$17
• HOA: −$0
• Vacancy / Maint / Mgmt: −$246
• Net cashflow: $663

Break-even live

Break-even rent $332

Max offer price $40,000

Occupancy floor 38%

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: $10,000
• Closing costs: $1,200
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-18
   days on market $40,000 Active 67 DOM
2. 2026-06-17
   days on market $40,000 Active 66 DOM
3. 2026-06-16
   days on market $40,000 Active 65 DOM
4. 2026-06-15
   days on market $40,000 Active 64 DOM
5. 2026-06-14
   days on market $40,000 Active 62 DOM
6. 2026-06-13
   days on market $40,000 Active 61 DOM
7. 2026-06-10
   days on market $40,000 Active 59 DOM
8. 2026-06-09
   days on market $40,000 Active 58 DOM
9. 2026-06-08
   days on market $40,000 Active 57 DOM
10. 2026-06-07
    days on market $40,000 Active 56 DOM
11. 2026-06-05
    days on market $40,000 Active 53 DOM
12. 2026-06-03
    days on market $40,000 Active 52 DOM
13. 2026-06-02
    days on market $40,000 Active 51 DOM
14. 2026-06-01
    days on market $40,000 Active 50 DOM
15. 2026-05-31
    days on market $40,000 Active 49 DOM
16. 2026-05-31
    days on market $40,000 Active 48 DOM
17. 2026-05-18
    price $40,000
18. 2026-04-09
    listed $50,000 Active

ⓘ 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: $432 · $36/mo
• Projected year-2 tax: $440 · $37/mo
• Expected delta: +$8/yr (+$1/mo · 1.9%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥97°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: $14,059
• − Mortgage interest: −$2,241
• − Property taxes: −$432
• − Insurance: −$200
• − Repairs & maintenance: −$1,125
• − Management: −$1,125
• − Depreciation: −$1,164
• Taxable income: $7,774
• Est. tax owed @ 24.0%: −$1,866
• After-tax cash flow: $6,092/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: Fillmore Central
• NCES district ID: 2700100
• Math proficiency: 33% ▼ -22.00%
• Reading proficiency: 47% ▼ -14.00%
• Median HH income: $47,519
• Composite: 34.2/100
• National rank: #5267
• State rank: #223 of 301 in MN

Livability — Harmony

• Score: 77/100
• State rank: #122
• US rank: #2818

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Harmony, MN
• Population (ZIP): 1,986

Population outlook (Fillmore County) Hauer SSP2

• Today (2025): 20,318 people
• By 2030: 19,765 · -2.7%
• By 2040: 18,559 · -8.7%
• By 2050: 17,194 · -15.4%
• By 2075: 14,253 · -29.9%
• By 2100: 10,645 · -47.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (98%)
• Race & ethnicity: White 98% Two or more races 2%
• Common ancestry: Portuguese 24% Iranian 3% Polish 2%
• Foreign-born: 0%
• Languages at home: 82% English-only · German/W. Germanic 15% Other Indo-European 1% Spanish 1%

Political lean MEDSL · Fillmore

• 2024 margin: Strong R (+25.5) · D 36.4% · R 61.9% · Other 1.7%
• 2008→2024 swing: -33.8pp toward R · 2008: 8.3pp · 2024: -25.5pp
• All cycles: 2024: R+25.5 2020: R+22.7 2016: R+21.9 2012: D+7.4 2008: D+8.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 21.53%
• Current HPI: 275.4837
• 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

-20.0% since first listed

2 events — show timeline

• 2026-05-18 Price Changed $40,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-09 Listed $50,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-2.5%/yr

Latest (2025): $432 · +6.9% YoY. Source: county tax records.