234 E School St · Owatonna, MN 55060

$112,700

4 bd · 2.0 ba · 1,737 sqft · SingleFamily public records · 163 Days on market

Built 1885 9,016 sqft lot $65/sqft · 51% below area Est $211k · 47% 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 +30.0/30.0
• ARV discount +15.0/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Livability +3.8/5.0
• Schools +3.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Key facts

• 9,016 sq ft lot
• Garage
• Built 1885

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $113k.

Deal economics

• At list price, monthly cash flow is $642 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $113k).
• Recommended offer: $99k (12.0% below list) — sets the bar for market timing.
• Cap rate 13.1% vs local median 3.2% in Owatonna — 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 76/100 on livability (#155 in MN, #3,413 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities D-, commute F, health & safety D-.
• Owatonna Public School District (town): math 38% / reading 47% proficiency, ranked #194 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 223 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 28 units permitted in Steele County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $779 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Steele County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 163 days — a 12% lower offer ($99k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 22y ago; this cycle's ask has dropped $43k (28%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1885 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $99,176 (12.0% below list)

Questions for the listing agent

1. It's been on market 163 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 1885 — 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. Schools are B-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?
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: 1.59% ✓
• Cap rate: 13.13%
• Cash-on-cash: 24.43%
• DSCR: 2.09
• GRM: 5.2

CMA / ARV

• ARV (median comp): $210,753
• List price: $112,700
• Delta: -46.53%
• 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: 17.8%
• Equity multiple: 1.72×
• Total profit: $22,677
• Equity at exit: $16,804

10-year hold

• IRR: 26.2%
• Equity multiple: 3.30×
• Total profit: $72,534
• Equity at exit: $9,744

Cash invested: $31,556 (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 55060

• Home prices YoY: -30.5%
• Active inventory: 223
• Price-to-rent: 5.2×

Monthly cashflow live

• Estimated rent: $1,797 medium
• Mortgage (P&I): −$591
• Tax from tax record: −$139 /mo · $1,672/yr
• Insurance: −$47
• HOA: −$0
• Vacancy / Maint / Mgmt: −$377
• Net cashflow: $642

Break-even live

Break-even rent $984

Max offer price $112,700

Occupancy floor 59%

Sensitivity live

Price	-10% $706	-5% $674	+0% $642	+5% $610	+10% $579
Rent	-10% $500	-5% $571	+0% $642	+5% $713	+10% $784
Rate	-1.0pp $699	-0.5pp $671	base $642	+0.5pp $613	+1.0pp $583

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: $28,175
• Closing costs: $3,381
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
592 Adams Ave NW Owatonna, MN	4.0	1.0	1100	$1,700	$1.55	44d	1	0.97mi

Listing history 33 events

1. 2026-06-21
   days on market $112,700 Active 163 DOM
2. 2026-06-19
   days on market $112,700 Active 161 DOM
3. 2026-06-18
   days on market $112,700 Active 160 DOM
4. 2026-06-17
   days on market $112,700 Active 159 DOM
5. 2026-06-16
   days on market $112,700 Active 158 DOM
6. 2026-06-15
   days on market $112,700 Active 157 DOM
7. 2026-06-14
   days on market $112,700 Active 155 DOM
8. 2026-06-12
   pricedays on market $112,700 Active 154 DOM
9. 2026-06-09
   days on market $122,500 Active 151 DOM
10. 2026-06-08
    days on market $122,500 Active 150 DOM
11. 2026-06-07
    days on market $122,500 Active 149 DOM
12. 2026-06-05
    days on market $122,500 Active 146 DOM
13. 2026-06-03
    days on market $122,500 Active 145 DOM
14. 2026-06-02
    days on market $122,500 Active 144 DOM
15. 2026-06-01
    days on market $122,500 Active 143 DOM
16. 2026-05-31
    days on market $122,500 Active 142 DOM
17. 2026-05-30
    days on market $122,500 Active 141 DOM
18. 2026-04-30
    price $122,500
19. 2026-04-01
    price $132,950
20. 2026-02-12
    price $144,500
21. 2026-01-09
    listed $156,000 Active
22. 2025-11-18
    price $183,600
23. 2025-10-08
    listed $204,000 Active
24. 2007-10-18
    soldstatus $114,900
25. 2007-10-18
    soldstatus $114,900
26. 2007-10-01
    historical
27. 2007-10-01
    soldstatus $114,900
28. 2007-06-14
    historical
29. 2007-06-13
    listed $118,900
30. 2007-04-11
    listed $121,900
31. 2007-04-11
    listed $118,900
32. 2004-12-07
    historical
33. 2004-08-03
    listed $114,900

ⓘ 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: $1,672 · $139/mo
• Projected year-2 tax: $1,672 · $139/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 ≥101°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: $21,565
• − Mortgage interest: −$6,313
• − Property taxes: −$1,672
• − Insurance: −$564
• − Repairs & maintenance: −$1,725
• − Management: −$1,725
• − Depreciation: −$3,279
• Taxable income: $6,287
• Est. tax owed @ 24.0%: −$1,509
• After-tax cash flow: $6,199/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: Owatonna Public School District
• NCES district ID: 2728050
• Math proficiency: 38% ▼ -12.00%
• Reading proficiency: 47% ▼ -7.00%
• Median HH income: $56,373
• Composite: 37.14/100
• National rank: #4487
• State rank: #194 of 301 in MN

Livability — Owatonna

• Score: 76/100
• State rank: #155
• US rank: #3413

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Owatonna, MN
• County: Steele County · 29,599 people
• City population: 29,599
• Metro: Owatonna, MN
• Population (ZIP): 29,599
• Household income: $84,906
• Rent vs Own: 22.8% rent · 77.2% own
• Severe rent burden: 598.0

Population outlook (Steele County) Hauer SSP2

• Today (2025): 36,618 people
• By 2030: 36,195 · -1.2%
• By 2040: 34,882 · -4.7%
• By 2050: 33,052 · -9.7%
• By 2075: 29,692 · -18.9%
• By 2100: 25,581 · -30.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Hispanic / Latino 8% Two or more races 5% Black 4%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 16% Romanian 3% Italian 2%
• Foreign-born: 5% · Canada, South Korea
• Languages at home: 93% English-only · Spanish 4%

Political lean MEDSL · Steele

• 2024 margin: Strong R (+24.5) · D 36.8% · R 61.2% · Other 2.0%
• 2008→2024 swing: -19.1pp toward R · 2008: -5.3pp · 2024: -24.5pp
• All cycles: 2024: R+24.5 2020: R+22.4 2016: R+26.0 2012: R+6.3 2008: R+5.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -92.54%
• Current HPI: 211.0177
• Rent YoY: —
• Metro: Owatonna, MN
• 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

+6.6% since first listed

16 events — show timeline

• 2026-04-30 Price Changed $122,500 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-01 Price Changed $132,950 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-12 Price Changed $144,500 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-09 Listed $156,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-18 Price Changed $183,600 NORTHSTARMLS as Distributed by MLS Grid
• 2025-10-08 Listed $204,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-18 Sold (MLS) $114,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-18 Sold (MLS) $114,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-01 Sold (Public Records) $114,900 Public Records
• 2007-10-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-06-14 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-06-13 Listed $118,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-04-11 Listed $118,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-04-11 Listed $121,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-12-07 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-08-03 Listed $114,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+4.9%/yr

Latest (2025): $1,672 · +6.9% YoY. Source: county tax records.