Dakota Plan

Rosemount, MN 55068

$553,990F

4 bd · 2.5 ba · 2,679 sqft · Built — · SingleFamily · Active · 124 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,773/mo
• Mortgage (P&I): −$4,033
• Tax + insurance: −$1,282
• HOA: −$0
• Vac / Maint / Mgmt: −$582
• Net cashflow: $-3,125/mo
• Annual: $-37,495/yr
• Cap rate: 1.42%
• Cash-on-cash: -17.41%
• DSCR: 0.23
• 1% rule: 0.36%
• Cash to close: $215,355

Investor read

• This is a 4-bed/2.5-bath single-family listed at $554k. Condition is rated good.
• At list price, monthly cash flow is $-3k ($-37k/yr) — negative.
• To cash-flow at today's rent, offer at most $317k (42.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $277k (49.9% below list).
• It's been on market 124 days — a 12% lower offer ($488k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $277k (49.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $23k of value loss. Plan a longer hold.
• Location reads 89/100 on livability (#5 in MN, #148 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities D, cost of living D.
• Rosemount-Apple Valley-Eagan (suburban): math 50% / reading 58% proficiency, ranked #58 of 301 in MN (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Rosemount Elementary (math 57% / reading 51%, grade C, #352 of 857 statewide, top 41%, 775 students, 27% FRL); Rosemount Middle (math 48% / reading 58%, grade C+, #53 of 258 statewide, top 22%, 1,205 students, 20% FRL); Rosemount Senior High (math 54% / reading 67%, grade C+, #43 of 471 statewide, top 9%, 2,425 students, 21% FRL).
• Market conditions: Rents rising fast (+6.0%/yr); 667 active listings in the ZIP; 10 comparable units currently listed for rent nearby; rentals lingering (median 101d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 90% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Cap rate 1.4% vs local median 3.4% in Rosemount — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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 124 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• 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.
• 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.