4120 Parklawn Ave #134

Edina, MN 55435

$136,000D

2 bd · 2.0 ba · 1,084 sqft · Built 1970 · Condo · Active · 86 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,742/mo
• Mortgage (P&I): −$713
• Tax + insurance: −$171
• HOA: −$958
• Vac / Maint / Mgmt: −$366
• Net cashflow: $-466/mo
• Annual: $-5,593/yr
• Cap rate: 2.18%
• Cash-on-cash: -14.69%
• DSCR: 0.35
• 1% rule: 1.28%
• Cash to close: $38,080

Investor read

• This is a 2-bed/2.0-bath condo listed at $136k.
• At list price, monthly cash flow is $-466 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $54k (60.5% below list).
• Meets the 1% rule at list price ($2k rent vs $136k).
• It's been on market 86 days — a 6% lower offer ($128k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $54k (60.5% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $940 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 80/100 on livability (#82 in MN, #1,926 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F.
• Edina Public School District (suburban): math 69% / reading 75% proficiency, ranked #5 of 301 in MN (top 2%) — strong family-tenant draw, lease renewals of 3-5y typical; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: Normandale Elementary (math 76% / reading 79%, grade A, #21 of 857 statewide, top 3%, 657 students, 7% FRL); South View Middle (math 58% / reading 71%, grade A-, #14 of 258 statewide, top 6%, 987 students, 22% FRL); Edina Senior High (math 57% / reading 76%, grade B, #21 of 471 statewide, top 5%, 2,720 students, 20% FRL).
• Watch-outs: HOA is 55% of rent.
• Market conditions: Rents flat; 67 active listings in the ZIP; 34 comparable units currently listed for rent nearby; rentals leasing fast (median 5d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 22y 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.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.2% vs local median 1.7% in Edina — 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.

Questions for listing agent

• 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?
• It's been on market 86 days. Have you received any prior offers? Is the seller open to a 61% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?