406 4th St SW · Montgomery, MN 56069

$169,900

2 bd · 1.0 ba · 675 sqft · SingleFamily public records · 17 Days on market

Built 1908 7,492 sqft lot $252/sqft · 26% below area

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Why this score? — see what drove the D+ 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 +15.5/30.0
• ARV discount +7.5/15.0
• Schools +5.0/10.0
• DSCR +4.8/10.0
• 1% rule +4.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

HUD acquired sold "as is", simultaneous bids due daily. See www. best-assets.com for bidding info, forms, disclosures, etc. All purchasers, no FHA. Verify all info. ,

Key facts

• Fresh paint
• Remodeled bathroom
• New carpet

Tags

• NEWER WINDOWS
• REMODELED BATHROOM
• NEW CARPET
• FRESH PAINT
• UPDATED KITCHEN
• HUGE BACKYARD

Property features AI

Exterior

• Parking: Detached 1-car garage
• Utilities: City water connected; City sewer connected; Natural gas
• Home design: Residential property; Two-story; Main level entry
• Construction: Stone foundation
• Exterior features: Vinyl exterior; Deck

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: Two bedrooms (both on the upper level)
• Bathrooms: One full bathroom on the main floor
• Heating & cooling: Forced air heating; Window cooling units
• Interior features: Eat-in kitchen; Main floor full bathroom; Crawl space basement; Two levels
• Laundry & utility: Main level laundry; Washer; Dryer

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $170k.

Deal economics

• At list price, monthly cash flow is $69 ($829/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $154k (9.5% below list).
• Recommended offer: $154k (9.5% below list) — sets the bar for 1% rule.
• Cap rate 6.8% vs local median 3.2% in Montgomery — 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 68/100 on livability (#399 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Market conditions: 80 active listings in the ZIP; 60 units permitted in Le Sueur 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 $5k of value loss. Plan a longer hold.
• Le Sueur County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 17 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• 7 sale attempts since 30y ago; this cycle's ask has dropped $30k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $153,797 (9.5% below list)

Questions for the listing agent

1. Built in 1908 — 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. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
4. 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.
5. 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.
6. 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: 0.91% ✗
• Cap rate: 6.78%
• Cash-on-cash: 1.74%
• DSCR: 1.08
• GRM: 9.2

CMA / ARV

• ARV (median comp): $341,179
• List price: $169,900
• Delta: -50.20%
• Verdict: UNDERPRICED
• Comps: 3 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -13.5%
• Equity multiple: 0.51×
• Total profit: $-23,127
• Equity at exit: $25,333

10-year hold

• IRR: -4.6%
• Equity multiple: 0.70×
• Total profit: $-14,450
• Equity at exit: $14,690

Cash invested: $47,572 (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 56069

• Home prices YoY: -15.8%
• Active inventory: 80
• Price-to-rent: 9.2×

Monthly cashflow live

• Estimated rent: $1,538 medium
• Mortgage (P&I): −$891
• Tax from tax record: −$184 /mo · $2,210/yr
• Insurance: −$71
• HOA: −$0
• Vacancy / Maint / Mgmt: −$323
• Net cashflow: $69

Break-even live

Break-even rent $1,451

Max offer price $169,900

Occupancy floor 91%

Sensitivity live

Price	-10% $165	-5% $117	+0% $69	+5% $21	+10% $-27
Rent	-10% $-52	-5% $8	+0% $69	+5% $130	+10% $191
Rate	-1.0pp $155	-0.5pp $112	base $69	+0.5pp $25	+1.0pp $-20

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: $42,475
• Closing costs: $5,097
• Reserves months: —
• Total cash needed: —

Listing history 21 events

1. 2026-05-16
   historical Contingent - Inspection 203-char remark
2. 2026-05-02
   historical
3. 2026-05-01
   price $169,900
4. 2026-05-01
   listed $169,900 Active 203-char remark
5. 2026-05-01
   listed $199,900 Active
6. 2018-05-09
   soldstatus $40,000
7. 2007-12-31
   soldstatus $41,067

   Show marketing remark (176 chars)

   HUD acquired sold "as is", simultaneous bids due daily. See www. best-assets.com for bidding info, forms, disclosures, etc. All purchasers, no FHA. Verify all info. ,

8. 2007-01-05
   listed $65,000

   Show marketing remark (176 chars)

   HUD acquired sold "as is", simultaneous bids due daily. See www. best-assets.com for bidding info, forms, disclosures, etc. All purchasers, no FHA. Verify all info. ,

9. 2004-07-27
   soldstatus $110,000
10. 2004-07-23
    soldstatus $110,000
11. 2004-06-11
    historical
12. 2004-05-21
    listed $107,000
13. 2003-06-05
    historical
14. 2002-10-01
    listed $99,900
15. 1999-02-25
    soldstatus $64,500
16. 1999-02-25
    soldstatus $64,500
17. 1999-01-28
    listed $64,000
18. 1999-01-28
    historical
19. 1997-08-01
    soldstatus $35,000
20. 1996-11-10
    historical
21. 1996-07-10
    listed $46,900

ⓘ 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: $2,210 · $184/mo
• Projected year-2 tax: $2,210 · $184/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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $18,456
• − Mortgage interest: −$9,517
• − Property taxes: −$2,210
• − Insurance: −$850
• − Repairs & maintenance: −$1,476
• − Management: −$1,476
• − Depreciation: −$4,943
• Taxable loss: −$2,016
• Est. tax savings @ 24.0%: +$484
• After-tax cash flow: $1,313/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)

No district data.

Livability — Montgomery

• Score: 68/100
• State rank: #399
• US rank: #9396

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, MN
• Population (ZIP): 4,948

Population outlook (Le Sueur County) Hauer SSP2

• Today (2025): 27,622 people
• By 2030: 27,346 · -1.0%
• By 2040: 26,451 · -4.2%
• By 2050: 25,299 · -8.4%
• By 2075: 23,188 · -16.1%
• By 2100: 21,103 · -23.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 4% Hispanic / Latino 3%
• Common ancestry: Portuguese 6% Romanian 5% Lithuanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Le Sueur

• 2024 margin: Solid R (+33.7) · D 32.4% · R 66.0% · Other 1.6%
• 2008→2024 swing: -29.4pp toward R · 2008: -4.3pp · 2024: -33.7pp
• All cycles: 2024: R+33.7 2020: R+30.3 2016: R+30.7 2012: R+6.5 2008: R+4.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -50.12%
• Current HPI: 266.5331
• 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

+262.3% since first listed

23 events — show timeline

• 2026-06-15 Sold (MLS) $169,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-19 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-16 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-01 Price Changed $169,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-01 Listed $199,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-01 Listed $169,900 NORTHSTARMLS as Distributed by MLS Grid
• 2018-05-09 Sold (Public Records) $40,000 Public Records
• 2007-12-31 Sold (MLS) $41,067 NORTHSTARMLS as Distributed by MLS Grid
• 2007-01-05 Listed $65,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-07-27 Sold (Public Records) $110,000 Public Records
• 2004-07-23 Sold (MLS) $110,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-06-11 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-05-21 Listed $107,000 NORTHSTARMLS as Distributed by MLS Grid
• 2003-06-05 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2002-10-01 Listed $99,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-02-25 Sold (Public Records) $64,500 Public Records
• 1999-02-25 Sold (MLS) $64,500 NORTHSTARMLS as Distributed by MLS Grid
• 1999-01-28 Listed $64,000 NORTHSTARMLS as Distributed by MLS Grid
• 1999-01-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1997-08-01 Sold (Public Records) $35,000 Public Records
• 1996-11-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1996-07-10 Listed $46,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+5.0%/yr

Latest (2025): $2,210 · -8.5% YoY. Source: county tax records.