500 Main Ave · Lafayette, MN 56054

$159,000

3 bd · 1.5 ba · 2,326 sqft · SingleFamily public records · 68 Days on market

Built 1900 10,497 sqft lot $68/sqft · 10% below area Est $177k · 10% under

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Why this score? — see what drove the C- 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).

• ARV discount +12.2/15.0
• Cash flow +11.9/30.0
• Appreciation +7.4/10.0
• Schools +4.4/10.0
• DSCR +3.5/10.0
• 1% rule +3.4/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Key facts

• 0.24 acre lot
• 3 garage spots
• Built 1900

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath single-family listed at $159k.

Deal economics

• At list price, monthly cash flow is $-41 ($-498/yr) — negative.
• To cash-flow at today's rent, offer at most $152k (4.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $133k (16.1% below list).
• Recommended offer: $133k (16.1% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 64/100 on livability (#570 in MN) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, housing A+; Watch: crime C-, amenities F, commute F.
• New Ulm Public School District (town): math 51% / reading 51% proficiency, ranked #104 of 301 in MN (top 35%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 6 active listings in the ZIP; 109 units permitted in Nicollet County in 2024 (47 in 5+ unit buildings).

Forward outlook

• In year one you build about $9k of equity ($1k loan paydown + $7k appreciation (4.7% local appreciation)).
• At projected returns (4.7% appreciation + 3.0% rent growth), your $45k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 68 days — a 6% lower offer ($149k) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $90k; list at $159k implies a 77% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $133,343 (16.1% below list)

Questions for the listing agent

1. 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?
2. It's been on market 68 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
3. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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.
7. 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.
8. 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: 0.84% ✗
• Cap rate: 5.98%
• Cash-on-cash: -1.12%
• DSCR: 0.95
• GRM: 9.9

CMA / ARV

• ARV (median comp): $177,417
• List price: $159,000
• Delta: -10.38%
• Verdict: UNDERPRICED
• Comps: 4 within 1.0 mi

Projected returns pro-forma

4.72% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 11.2%
• Equity multiple: 1.71×
• Total profit: $31,457
• Equity at exit: $87,374

10-year hold

• IRR: 12.6%
• Equity multiple: 3.22×
• Total profit: $98,696
• Equity at exit: $148,585

Cash invested: $44,520 (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 56054

• Home prices YoY: 2.0%
• Active inventory: 6
• Price-to-rent: 9.9×

Monthly cashflow live

• Estimated rent: $1,333 medium
• Mortgage (P&I): −$834
• Tax from tax record: −$195 /mo · $2,338/yr
• Insurance: −$66
• HOA: −$0
• Vacancy / Maint / Mgmt: −$280
• Net cashflow: $-41

Break-even live

Break-even rent $1,386

Max offer price $151,671

Occupancy floor 98%

Sensitivity live

Price	-10% $49	-5% $4	+0% $-41	+5% $-86	+10% $-131
Rent	-10% $-147	-5% $-94	+0% $-41	+5% $11	+10% $64
Rate	-1.0pp $39	-0.5pp $-1	base $-41	+0.5pp $-83	+1.0pp $-125

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: $39,750
• Closing costs: $4,770
• Reserves months: —
• Total cash needed: —

Listing history 33 events

1. 2026-06-21
   days on market $159,000 Active 68 DOM
2. 2026-06-21
   days on market $159,000 Active 67 DOM
3. 2026-06-18
   days on market $159,000 Active 65 DOM
4. 2026-06-17
   days on market $159,000 Active 64 DOM
5. 2026-06-16
   days on market $159,000 Active 63 DOM
6. 2026-06-15
   days on market $159,000 Active 62 DOM
7. 2026-06-13
   days on market $159,000 Active 60 DOM
8. 2026-06-12
   days on market $159,000 Active 59 DOM
9. 2026-06-09
   days on market $159,000 Active 56 DOM
10. 2026-06-08
    days on market $159,000 Active 55 DOM
11. 2026-06-07
    days on market $159,000 Active 54 DOM
12. 2026-06-07
    days on market $159,000 Active 53 DOM
13. 2026-06-04
    days on market $159,000 Active 50 DOM
14. 2026-06-02
    days on market $159,000 Active 49 DOM
15. 2026-06-01
    days on market $159,000 Active 48 DOM
16. 2026-05-31
    days on market $159,000 Active 47 DOM
17. 2026-05-31
    days on market $159,000 Active 46 DOM
18. 2026-05-18
    price $159,000
19. 2026-05-18
    price $159,000
20. 2026-05-14
    status Active
21. 2026-05-14
    status Active
22. 2026-05-05
    historical Active Under Contract
23. 2026-05-05
    historical Contingent - Inspection
24. 2026-04-14
    listed $169,000 Active
25. 2026-04-14
    listed $169,000 Active
26. 2025-08-14
    historical
27. 2025-07-23
    price $164,750
28. 2025-07-23
    price $164,750
29. 2025-07-15
    price $169,999
30. 2025-07-11
    listed $175,000 Active
31. 2025-07-07
    historical
32. 2018-05-14
    soldstatus $90,000
33. 2003-12-03
    soldstatus $79,900

ⓘ 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: $2,338 · $195/mo
• Projected year-2 tax: $2,338 · $195/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 (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥100°F today · 14 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: $16,001
• − Mortgage interest: −$8,906
• − Property taxes: −$2,338
• − Insurance: −$795
• − Repairs & maintenance: −$1,280
• − Management: −$1,280
• − Depreciation: −$4,625
• Taxable loss: −$3,224
• Est. tax savings @ 24.0%: +$774
• After-tax cash flow: $276/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: New Ulm Public School District
• NCES district ID: 2723490
• Math proficiency: 51% ▼ -3.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $53,171
• Composite: 43.93/100
• National rank: #2906
• State rank: #104 of 301 in MN

Livability — Lafayette

• Score: 64/100
• State rank: #570
• US rank: #13738

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lafayette, MN
• Population (ZIP): 865

Population outlook (Nicollet County) Hauer SSP2

• Today (2025): 34,373 people
• By 2030: 34,666 · +0.9%
• By 2040: 34,616 · +0.7%
• By 2050: 34,340 · -0.1%
• By 2075: 33,171 · -3.5%
• By 2100: 31,949 · -7.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (97%)
• Race & ethnicity: White 97% Two or more races 2%
• Common ancestry: Portuguese 10% Lithuanian 5% Iranian 2%
• Foreign-born: 0%
• Languages at home: 98% English-only · German/W. Germanic 1% Spanish 1%

Political lean MEDSL · Nicollet

• 2024 margin: Toss-up / Even · D 48.8% · R 49.3% · Other 1.9%
• 2008→2024 swing: -11.0pp toward R · 2008: 10.5pp · 2024: -0.5pp
• All cycles: 2024: R+0.5 2020: D+3.2 2016: R+3.1 2012: D+7.9 2008: D+10.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.72%
• Current HPI: 239.2149
• 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

+99.0% since first listed

16 events — show timeline

• 2026-05-18 Price Changed $159,000 RASM
• 2026-05-18 Price Changed $159,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-14 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-14 Relisted — RASM
• 2026-05-05 Contingent — RASM
• 2026-05-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Listed $169,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Listed $169,000 RASM
• 2025-08-14 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-23 Price Changed $164,750 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-23 Price Changed $164,750 RASM
• 2025-07-15 Price Changed $169,999 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-11 Listed $175,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-07 Coming Soon — NORTHSTARMLS as Distributed by MLS Grid
• 2018-05-14 Sold (Public Records) $90,000 Public Records
• 2003-12-03 Sold (Public Records) $79,900 Public Records

Property tax history

+4.7%/yr

Latest (2025): $2,338 · -1.9% YoY. Source: county tax records.