1122 Division St N · Clara City, MN 56222

$197,000

3 bd · 1.0 ba · 1,152 sqft · SingleFamily · 237 Days on market

Built 1966 0.41 ac lot

---

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
• DSCR +10.0/10.0
• 1% rule +8.5/10.0
• ARV discount +7.5/15.0
• Schools +3.8/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +1.2/10.0

Listing remarks MLS

This 3 bedroom, 1 full bath, one floor living house along with a single-attached garage is located on the North end of Clara City just a block from a park. Many updates happened in 2023, new siding, windows, gutters, external doors, garage door. The garage had new concrete with a drain along with an internal tile system installed by Jesse Trebil Safebasements. The flooring in the dining room/living room were updated. The basement is unfinished but recessed lighting and an egress window were installed. So many possibilities with this home.

Key facts

• New siding
• New gutters
• New external doors

Tags

• ONE FLOOR LIVING
• NEW SIDING
• NEW WINDOWS
• NEW GUTTERS
• NEW EXTERNAL DOORS
• NEW GARAGE DOOR

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $197k.

Deal economics

• At list price, monthly cash flow is $837 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $197k).
• Recommended offer: $173k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 73/100 on livability (#244 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Maccray School District (rural): math 41% / reading 46% proficiency, ranked #188 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 8 active listings in the ZIP; 13 units permitted in Chippewa 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 $6k of value loss. Plan a longer hold.
• Chippewa County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $55k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 237 days — a 12% lower offer ($173k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 6y 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.

Recommended offer $173,360 (12.0% below list)

Questions for the listing agent

1. It's been on market 237 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 1966 — 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: 1.35% ✓
• Cap rate: 11.39%
• Cash-on-cash: 18.20%
• DSCR: 1.81
• GRM: 6.2

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 9.8%
• Equity multiple: 1.39×
• Total profit: $21,353
• Equity at exit: $29,373

10-year hold

• IRR: 18.9%
• Equity multiple: 2.58×
• Total profit: $87,140
• Equity at exit: $17,033

Cash invested: $55,160 (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 56222

• Home prices YoY: -3.3%
• Active inventory: 8
• Price-to-rent: 6.2×

Monthly cashflow live

• Estimated rent: $2,660 medium
• Mortgage (P&I): −$1,033
• Tax from tax record: −$149 /mo · $1,790/yr
• Insurance: −$82
• HOA: −$0
• Vacancy / Maint / Mgmt: −$559
• Net cashflow: $837

Break-even live

Break-even rent $1,600

Max offer price $197,000

Occupancy floor 64%

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: $49,250
• Closing costs: $5,910
• Reserves months: —
• Total cash needed: —

Listing history 13 events

1. 2026-05-18
   status Pending 544-char remark

   Show marketing remark (544 chars)

   This 3 bedroom, 1 full bath, one floor living house along with a single-attached garage is located on the North end of Clara City just a block from a park. Many updates happened in 2023, new siding, windows, gutters, external doors, garage door. The garage had new concrete with a drain along with an internal tile system installed by Jesse Trebil Safebasements. The flooring in the dining room/living room were updated. The basement is unfinished but recessed lighting and an egress window were installed. So many possibilities with this home.

2. 2026-05-05
   historical Contingent - Inspection 544-char remark

   Show marketing remark (544 chars)

   This 3 bedroom, 1 full bath, one floor living house along with a single-attached garage is located on the North end of Clara City just a block from a park. Many updates happened in 2023, new siding, windows, gutters, external doors, garage door. The garage had new concrete with a drain along with an internal tile system installed by Jesse Trebil Safebasements. The flooring in the dining room/living room were updated. The basement is unfinished but recessed lighting and an egress window were installed. So many possibilities with this home.

3. 2026-04-08
   price $197,000 544-char remark

   Show marketing remark (544 chars)

   This 3 bedroom, 1 full bath, one floor living house along with a single-attached garage is located on the North end of Clara City just a block from a park. Many updates happened in 2023, new siding, windows, gutters, external doors, garage door. The garage had new concrete with a drain along with an internal tile system installed by Jesse Trebil Safebasements. The flooring in the dining room/living room were updated. The basement is unfinished but recessed lighting and an egress window were installed. So many possibilities with this home.

4. 2025-09-22
   listed $199,000 Active 544-char remark

   Show marketing remark (544 chars)

   This 3 bedroom, 1 full bath, one floor living house along with a single-attached garage is located on the North end of Clara City just a block from a park. Many updates happened in 2023, new siding, windows, gutters, external doors, garage door. The garage had new concrete with a drain along with an internal tile system installed by Jesse Trebil Safebasements. The flooring in the dining room/living room were updated. The basement is unfinished but recessed lighting and an egress window were installed. So many possibilities with this home.

5. 2024-10-04
   soldstatus $190,000
6. 2024-09-27
   soldstatus $190,000 Sold 738-char remark

   Show marketing remark (738 chars)

   This house has everything you need on one floor including 3 bedrooms with hardwood floors. It is very close to the edge of town and is only a block from a park. There have been so many improvements in the past 3 years: new roof with 50-year hail impact shingles in 2023, new rain gutters, new siding, new windows, new external doors, new garage door, new garage concrete with drain and an internal tile system installed by Jesse Trebil Safe Basements in 2023. The flooring in the dining room and living room have recently been replaced. Although the basement is unfinished, recessed lights have been installed as well as an egress window. Design the basement yourself and double the finished square feet by finishing this open space.

7. 2024-08-27
   status Pending 738-char remark

   Show marketing remark (738 chars)

   This house has everything you need on one floor including 3 bedrooms with hardwood floors. It is very close to the edge of town and is only a block from a park. There have been so many improvements in the past 3 years: new roof with 50-year hail impact shingles in 2023, new rain gutters, new siding, new windows, new external doors, new garage door, new garage concrete with drain and an internal tile system installed by Jesse Trebil Safe Basements in 2023. The flooring in the dining room and living room have recently been replaced. Although the basement is unfinished, recessed lights have been installed as well as an egress window. Design the basement yourself and double the finished square feet by finishing this open space.

8. 2024-08-13
   listed $199,500 Active 738-char remark

   Show marketing remark (738 chars)

   This house has everything you need on one floor including 3 bedrooms with hardwood floors. It is very close to the edge of town and is only a block from a park. There have been so many improvements in the past 3 years: new roof with 50-year hail impact shingles in 2023, new rain gutters, new siding, new windows, new external doors, new garage door, new garage concrete with drain and an internal tile system installed by Jesse Trebil Safe Basements in 2023. The flooring in the dining room and living room have recently been replaced. Although the basement is unfinished, recessed lights have been installed as well as an egress window. Design the basement yourself and double the finished square feet by finishing this open space.

9. 2021-01-25
   soldstatus $100,000
10. 2021-01-08
    status Pending
11. 2021-01-08
    soldstatus $100,000 Sold
12. 2021-01-05
    historical Contingent - Inspection
13. 2020-11-13
    listed $109,000 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: $1,790 · $149/mo
• Projected year-2 tax: $1,998 · $167/mo
• Expected delta: +$208/yr (+$17/mo · 11.6%)

ⓘ 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 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 13 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $31,916
• − Mortgage interest: −$11,035
• − Property taxes: −$1,790
• − Insurance: −$985
• − Repairs & maintenance: −$2,553
• − Management: −$2,553
• − Depreciation: −$5,731
• Taxable income: $7,268
• Est. tax owed @ 24.0%: −$1,744
• After-tax cash flow: $8,297/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: Maccray School District
• NCES district ID: 2700091
• Math proficiency: 41% ▼ -10.00%
• Reading proficiency: 46% ▼ -7.00%
• Median HH income: $52,637
• Composite: 37.64/100
• National rank: #4374
• State rank: #188 of 301 in MN

Livability — Clara City

• Score: 73/100
• State rank: #244
• US rank: #5251

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Clara City, MN
• Population (ZIP): 2,012

Population outlook (Chippewa County) Hauer SSP2

• Today (2025): 11,593 people
• By 2030: 11,294 · -2.6%
• By 2040: 10,715 · -7.6%
• By 2050: 10,229 · -11.8%
• By 2075: 9,600 · -17.2%
• By 2100: 8,500 · -26.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 9% Two or more races 4% Native American 2%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Portuguese 25% Iranian 12% Lithuanian 2%
• Foreign-born: 4% · Canada
• Languages at home: 94% English-only · Spanish 5%

Political lean MEDSL · Chippewa

• 2024 margin: Solid R (+34.1) · D 32.2% · R 66.3% · Other 1.6%
• 2008→2024 swing: -40.0pp toward R · 2008: 5.9pp · 2024: -34.1pp
• All cycles: 2024: R+34.1 2020: R+30.6 2016: R+28.9 2012: D+1.9 2008: D+5.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -7.61%
• Current HPI: 220.8934
• 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

+80.7% since first listed

13 events — show timeline

• 2026-05-18 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-08 Price Changed $197,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-22 Listed $199,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-10-04 Sold (Public Records) $190,000 Public Records
• 2024-09-27 Sold (MLS) $190,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-08-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2024-08-13 Listed $199,500 NORTHSTARMLS as Distributed by MLS Grid
• 2021-01-25 Sold (Public Records) $100,000 Public Records
• 2021-01-08 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2021-01-08 Sold (MLS) $100,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-01-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2020-11-13 Listed $109,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+4.3%/yr

Latest (2025): $1,790 · -7.5% YoY. Source: county tax records.