816 Clausen Ave · Albert Lea, MN 56007

$115,000

3 bd · 1.5 ba · 1,761 sqft · SingleFamily public records · 9 Days on market

Built 1947 6,577 sqft lot $65/sqft · 39% below area Est $147k · 22% 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 +24.5/30.0
• ARV discount +15.0/15.0
• DSCR +7.9/10.0
• 1% rule +7.0/10.0
• Livability +3.6/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Great three bedroom, two bath home with unique features, such as a three season porch on the main level, as well as the upstairs! Wonderful handcrafted woodwork throughout home. Home also features a great backyard for entertaining, with two patio areas and a swing.

Key facts

• Functional layout
• Corner lot
• Patio space

Tags

• CORNER LOT
• DETACHED GARAGE
• PATIO SPACE
• ORIGINAL HARDWOOD FLOORS
• FUNCTIONAL LAYOUT

Property features AI

Exterior

• Parking: Detached or attached garage information not specified; concrete parking surface; One-car garage (12x20)
• Utilities: City water; City sewer; Natural gas fuel; Electric service with circuit breakers
• Home design: Residential property; Two-story home; Main entry on the main level; Facing direction not specified
• Construction: Block foundation; Roof over 8 years old; Built with wood exterior
• Exterior features: Patio; Wood exterior; Corner lot; City-maintained street frontage

Interior

• Kitchen: Main-level kitchen
• Bedrooms: Three bedrooms — two on the upper level, one on the main level
• Bathrooms: One 3/4 bathroom on the upper level; One half bathroom on the main level
• Heating & cooling: Forced air heating; No central air
• Interior features: Unfinished basement; Informal dining room; Main-level porch

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath single-family listed at $115k.

Deal economics

• At list price, monthly cash flow is $237 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $115k).
• Cap rate 8.8% vs local median 4.0% in Albert Lea — 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 72/100 on livability (#274 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, employment D+, amenities F.
• Albert Lea Public School District (town): math 30% / reading 40% proficiency, ranked #258 of 301 in MN (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 150 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 16 units permitted in Freeborn County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Freeborn County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1947 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $115,000

Questions for the listing agent

1. Built in 1947 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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: 1.20% ✓
• Cap rate: 8.76%
• Cash-on-cash: 8.82%
• DSCR: 1.39
• GRM: 7.0

CMA / ARV

• ARV (median comp): $147,130
• List price: $115,000
• Delta: -21.84%
• Verdict: UNDERPRICED
• Comps: 4 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -2.9%
• Equity multiple: 0.89×
• Total profit: $-3,502
• Equity at exit: $17,147

10-year hold

• IRR: 6.9%
• Equity multiple: 1.52×
• Total profit: $16,591
• Equity at exit: $9,943

Cash invested: $32,200 (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 56007

• Home prices YoY: -22.3%
• Active inventory: 150
• Price-to-rent: 7.0×

Monthly cashflow live

• Estimated rent: $1,377 medium
• Mortgage (P&I): −$603
• Tax from tax record: −$200 /mo · $2,406/yr
• Insurance: −$48
• HOA: −$0
• Vacancy / Maint / Mgmt: −$289
• Net cashflow: $237

Break-even live

Break-even rent $1,078

Max offer price $115,000

Occupancy floor 78%

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: $28,750
• Closing costs: $3,450
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1619 W Main St Unit 116- 2 Loft, 15 bath Albert Lea, MN	2.0	1.5	1366	$1,500	$1.10	43d	1	1.47mi

Listing history 3 events

1. 2026-05-13
   listed $115,000 Active 984-char remark
2. 2021-07-22
   soldstatus $101,500 265-char remark

   Show marketing remark (265 chars)

   Great three bedroom, two bath home with unique features, such as a three season porch on the main level, as well as the upstairs! Wonderful handcrafted woodwork throughout home. Home also features a great backyard for entertaining, with two patio areas and a swing.

3. 2021-07-22
   soldstatus $101,500

   Show marketing remark (265 chars)

   Great three bedroom, two bath home with unique features, such as a three season porch on the main level, as well as the upstairs! Wonderful handcrafted woodwork throughout home. Home also features a great backyard for entertaining, with two patio areas and a swing.

ⓘ 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: $2,406 · $200/mo
• Projected year-2 tax: $2,406 · $200/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 1/10 Low 7 d/yr ≥99°F today · 16 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: $16,530
• − Mortgage interest: −$6,442
• − Property taxes: −$2,406
• − Insurance: −$575
• − Repairs & maintenance: −$1,322
• − Management: −$1,322
• − Depreciation: −$3,345
• Taxable income: $1,117
• Est. tax owed @ 24.0%: −$268
• After-tax cash flow: $2,573/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: Albert Lea Public School District
• NCES district ID: 2702970
• Math proficiency: 30% ▼ -14.00%
• Reading proficiency: 40% ▼ -8.00%
• Median HH income: $42,776
• Composite: 29.62/100
• National rank: #6472
• State rank: #258 of 301 in MN

Livability — Albert Lea

• Score: 72/100
• State rank: #274
• US rank: #5963

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Albert Lea, MN
• County: Freeborn County · 21,377 people
• City population: 21,377
• Metro: Albert Lea, MN
• Population (ZIP): 21,377
• Household income: $68,846
• Rent vs Own: 23.3% rent · 76.7% own
• Severe rent burden: 483.0

Population outlook (Freeborn County) Hauer SSP2

• Today (2025): 29,680 people
• By 2030: 29,038 · -2.2%
• By 2040: 27,650 · -6.8%
• By 2050: 26,387 · -11.1%
• By 2075: 25,224 · -15.0%
• By 2100: 23,842 · -19.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (79%)
• Race & ethnicity: White 79% Hispanic / Latino 14% Two or more races 8% Asian 4% Black 2%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Portuguese 23% Iranian 3% Romanian 2%
• Foreign-born: 4% · Canada, Philippines
• Languages at home: 90% English-only · Spanish 7% Other Asian/Pacific 3%

Political lean MEDSL · Freeborn

• 2024 margin: Strong R (+21.3) · D 38.7% · R 60.0% · Other 1.3%
• 2008→2024 swing: -38.5pp toward R · 2008: 17.1pp · 2024: -21.3pp
• All cycles: 2024: R+21.3 2020: R+16.0 2016: R+17.4 2012: D+14.2 2008: D+17.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -63.40%
• Current HPI: 220.7963
• Rent YoY: —
• Metro: Albert Lea, 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

+13.3% since first listed

5 events — show timeline

• 2026-05-22 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-19 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-13 Listed $115,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-07-22 Sold (Public Records) $101,500 Public Records
• 2021-07-22 Sold (MLS) $101,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+8.4%/yr

Latest (2025): $2,406 · +51.3% YoY. Source: county tax records.