202 5th St SE · Montgomery, MN 56069

$165,000

4 bd · 1.0 ba · 1,238 sqft · SingleFamily public records · 66 Days on market

Built 1928 6,577 sqft lot $133/sqft · 21% below area Est $293k · 44% 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 +24.8/30.0
• ARV discount +15.0/15.0
• DSCR +8.0/10.0
• 1% rule +6.4/10.0
• Schools +5.0/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

SPECIAL $100 DOWN PAYMENT PROGRAM. REHAB FUND UP TO $11,000 WITH 203B WITH ESCROW. Great potential. 2 bedroom up, 2 bedrooms on m ain level, 1 bath. Large Large back yard. Basement unfinished, but could be converted into living space with added improvements. Investor are welcome after 15 days An older home is made new again! It's hard to imagine it was built in 1928, unless you are in the unfinished basement where the mechanicals are. Minor repairs and some painting and cleaning. Floorplan was re-arranged for better flow and convenience. Features include knockdown ceiling texture, recessed lighting, newer bathrooms, laundry/mudroom, ceiling fans in all bedrooms, newer flooring throughout..

Key facts

• 6,577 sq ft lot
• Garage
• Built 1928

What this means for you Summary

Snapshot

• This is a 4-bed/1.0-bath single-family listed at $165k.

Deal economics

• At list price, monthly cash flow is $347 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $165k).
• Recommended offer: $155k (6.0% below list) — sets the bar for market timing.
• Cap rate 8.8% vs local median 3.2% in Montgomery — 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 68/100 on livability (#399 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Market conditions: 80 active listings in the ZIP; 60 units permitted in Le Sueur County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Le Sueur County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 66 days — a 6% lower offer ($155k) is reasonable based on typical stale-listing flexibility.
• 9 sale attempts since 30y 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.

Risks & watch-outs

• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $155,100 (6.0% below list)

Questions for the listing agent

1. It's been on market 66 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 1928 — 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: 1.14% ✓
• Cap rate: 8.81%
• Cash-on-cash: 9.00%
• DSCR: 1.40
• GRM: 7.3

CMA / ARV

• ARV (median comp): $293,311
• List price: $165,000
• Delta: -43.75%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -2.7%
• Equity multiple: 0.90×
• Total profit: $-4,626
• Equity at exit: $24,602

10-year hold

• IRR: 7.1%
• Equity multiple: 1.53×
• Total profit: $24,531
• Equity at exit: $14,266

Cash invested: $46,200 (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 56069

• Home prices YoY: -15.8%
• Active inventory: 80
• Price-to-rent: 7.3×

Monthly cashflow live

• Estimated rent: $1,888 medium
• Mortgage (P&I): −$865
• Tax from tax record: −$210 /mo · $2,526/yr
• Insurance: −$69
• HOA: −$0
• Vacancy / Maint / Mgmt: −$396
• Net cashflow: $347

Break-even live

Break-even rent $1,449

Max offer price $165,000

Occupancy floor 77%

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: $41,250
• Closing costs: $4,950
• Reserves months: —
• Total cash needed: —

Listing history 43 events

1. 2026-06-19
   days on market $165,000 Active 66 DOM
2. 2026-06-18
   days on market $165,000 Active 65 DOM
3. 2026-06-17
   days on market $165,000 Active 64 DOM
4. 2026-06-16
   days on market $165,000 Active 63 DOM
5. 2026-06-15
   days on market $165,000 Active 62 DOM
6. 2026-06-14
   days on market $165,000 Active 60 DOM
7. 2026-06-12
   days on market $165,000 Active 59 DOM
8. 2026-06-09
   days on market $165,000 Active 56 DOM
9. 2026-06-08
   days on market $165,000 Active 55 DOM
10. 2026-06-07
    statusdays on market $165,000 Active 54 DOM
11. 2026-06-02
    days on market $165,000 Contingent - Other 49 DOM
12. 2026-06-01
    days on market $165,000 Contingent - Other 48 DOM
13. 2026-05-31
    days on market $165,000 Contingent - Other 47 DOM
14. 2026-05-30
    days on market $165,000 Contingent - Other 46 DOM
15. 2026-05-18
    historical Contingent - Other 702-char remark

    Show marketing remark (702 chars)

    SPECIAL $100 DOWN PAYMENT PROGRAM. REHAB FUND UP TO $11,000 WITH 203B WITH ESCROW. Great potential. 2 bedroom up, 2 bedrooms on m ain level, 1 bath. Large Large back yard. Basement unfinished, but could be converted into living space with added improvements. Investor are welcome after 15 days An older home is made new again! It's hard to imagine it was built in 1928, unless you are in the unfinished basement where the mechanicals are. Minor repairs and some painting and cleaning. Floorplan was re-arranged for better flow and convenience. Features include knockdown ceiling texture, recessed lighting, newer bathrooms, laundry/mudroom, ceiling fans in all bedrooms, newer flooring throughout..

16. 2026-04-14
    listed $165,000 Active 702-char remark

    Show marketing remark (702 chars)

    SPECIAL $100 DOWN PAYMENT PROGRAM. REHAB FUND UP TO $11,000 WITH 203B WITH ESCROW. Great potential. 2 bedroom up, 2 bedrooms on m ain level, 1 bath. Large Large back yard. Basement unfinished, but could be converted into living space with added improvements. Investor are welcome after 15 days An older home is made new again! It's hard to imagine it was built in 1928, unless you are in the unfinished basement where the mechanicals are. Minor repairs and some painting and cleaning. Floorplan was re-arranged for better flow and convenience. Features include knockdown ceiling texture, recessed lighting, newer bathrooms, laundry/mudroom, ceiling fans in all bedrooms, newer flooring throughout..

17. 2023-07-26
    status Pending
18. 2023-07-26
    historical
19. 2023-07-21
    listed $180,000 Active
20. 2019-07-01
    soldstatus $164,900 Sold
21. 2019-07-01
    soldstatus $164,900
22. 2019-05-22
    status Pending
23. 2019-05-13
    historical Contingent - Inspection
24. 2019-05-08
    listed $159,900 Active
25. 2016-04-30
    historical
26. 2016-04-05
    price $129,900
27. 2016-03-11
    price $134,900
28. 2015-10-28
    listed $139,900 Active
29. 2014-06-21
    historical
30. 2014-04-11
    listed $124,900 Active
31. 2007-10-26
    soldstatus $106,000
32. 2007-09-20
    historical
33. 2007-07-11
    listed $120,000
34. 2007-05-15
    historical
35. 2007-02-28
    listed $134,900
36. 2004-06-10
    soldstatus $144,900
37. 2004-05-21
    soldstatus $144,900
38. 2004-04-26
    historical
39. 2004-04-05
    listed $144,900
40. 1996-02-29
    soldstatus $71,500
41. 1996-02-29
    soldstatus $71,500
42. 1996-01-30
    historical
43. 1996-01-29
    listed $68,900

ⓘ 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: $2,526 · $210/mo
• Projected year-2 tax: $2,526 · $210/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $22,651
• − Mortgage interest: −$9,243
• − Property taxes: −$2,526
• − Insurance: −$825
• − Repairs & maintenance: −$1,812
• − Management: −$1,812
• − Depreciation: −$4,800
• Taxable income: $1,634
• Est. tax owed @ 24.0%: −$392
• After-tax cash flow: $3,768/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)

No district data.

Livability — Montgomery

• Score: 68/100
• State rank: #399
• US rank: #9396

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, MN
• Population (ZIP): 4,948

Population outlook (Le Sueur County) Hauer SSP2

• Today (2025): 27,622 people
• By 2030: 27,346 · -1.0%
• By 2040: 26,451 · -4.2%
• By 2050: 25,299 · -8.4%
• By 2075: 23,188 · -16.1%
• By 2100: 21,103 · -23.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 4% Hispanic / Latino 3%
• Common ancestry: Portuguese 6% Romanian 5% Lithuanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Le Sueur

• 2024 margin: Solid R (+33.7) · D 32.4% · R 66.0% · Other 1.6%
• 2008→2024 swing: -29.4pp toward R · 2008: -4.3pp · 2024: -33.7pp
• All cycles: 2024: R+33.7 2020: R+30.3 2016: R+30.7 2012: R+6.5 2008: R+4.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -50.12%
• Current HPI: 266.5331
• 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

+139.5% since first listed

29 events — show timeline

• 2026-05-18 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Listed $165,000 NORTHSTARMLS as Distributed by MLS Grid
• 2023-07-26 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2023-07-26 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2023-07-21 Listed $180,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-07-01 Sold (Public Records) $164,900 Public Records
• 2019-07-01 Sold (MLS) $164,900 NORTHSTARMLS as Distributed by MLS Grid
• 2019-05-22 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2019-05-13 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2019-05-08 Listed $159,900 NORTHSTARMLS as Distributed by MLS Grid
• 2016-04-30 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-04-05 Price Changed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2016-03-11 Price Changed $134,900 NORTHSTARMLS as Distributed by MLS Grid
• 2015-10-28 Listed $139,900 NORTHSTARMLS as Distributed by MLS Grid
• 2014-06-21 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2014-04-11 Listed $124,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-26 Sold (MLS) $106,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-09-20 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-07-11 Listed $120,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-05-15 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-02-28 Listed $134,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-06-10 Sold (Public Records) $144,900 Public Records
• 2004-05-21 Sold (MLS) $144,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-04-26 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-04-05 Listed $144,900 NORTHSTARMLS as Distributed by MLS Grid
• 1996-02-29 Sold (Public Records) $71,500 Public Records
• 1996-02-29 Sold (MLS) $71,500 NORTHSTARMLS as Distributed by MLS Grid
• 1996-01-30 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1996-01-29 Listed $68,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-2.7%/yr

Latest (2025): $2,526 · -7.4% YoY. Source: county tax records.