617 W 3rd St · Madison, MN 56256

$79,500

1 bd · 1.0 ba · 713 sqft · SingleFamily · 17 Days on market

Built 1900 2,221 sqft lot

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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).

• Cash flow +24.7/30.0
• DSCR +8.0/10.0
• ARV discount +7.5/15.0
• 1% rule +5.3/10.0
• 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

Listing remarks

Income property! This home could be used as your residence with either the upper or lower being rented out to another party. The upstair apartment is very nice with a rear entrance large kitchen, living, dining area, full bathroom, laundry room and 2 bedrooms! The main floor has 1 Bedroom and a newly remodeled bathroom. Living, Dining and Large kitchen, its own laundry room! The shingles and siding are just 2 years old! This could be a wonderful income property! With the added income of the additional rental option! There is a partial fence in the rear and yard. 2 Apartment building. Over/Under. Each has their own entrance. THE WAY IT SITS NOW IS MAIN FLOOR IS THE OWNER THE TOP RENTAL IS N

Key facts

• Living dining area
• Full bathroom
• Laundry room

Tags

• LARGE KITCHEN
• LIVING DINING AREA
• FULL BATHROOM
• LAUNDRY ROOM
• NEWLY REMODELED BATHROOM
• PARTIAL FENCE

Property features AI

Finance

• Other: Total of 2 units (duplex); Unit example: 1 unit with 1 bedroom, 1 bathroom, 6 total rooms; Lot dimensions approximately 30 x 75 on a 0.051-acre lot; Public maintained city street frontage
• Financial info: Property has a standard rental license; Gross annual income reported: $19,200; Electric expense: $3,600; Fuel expense: $600; Insurance expense: $600

Exterior

• Utilities: City water connected; City sewer connected; Circuit breaker electric; Natural gas
• Home design: Duplex up-and-down residential income property; Two-story; Entry on city street
• Construction: Poured concrete foundation; Built with frame construction
• Exterior features: Vinyl exterior; Asphalt roof (age 8 years or less); Frame construction

Interior

• Bedrooms: 1 bedroom
• Bathrooms: 1 bathroom (includes a three-quarter bath)
• Heating & cooling: Forced air heating
• Interior features: Partial unfinished basement; Poured concrete foundation; Two levels
• Laundry & utility: Laundry on main level; Laundry on upper level

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $80k.

Deal economics

• At list price, monthly cash flow is $167 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($820 rent vs $80k).
• Recommended offer: $78k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 76/100 on livability (#175 in MN, #3,796 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Lac Qui Parle Valley School District (rural): math 44% / reading 44% proficiency, ranked #193 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 16 active listings in the ZIP; 9 units permitted in Lac qui Parle County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $550 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Lac qui Parle County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 17 days — a 2% lower offer ($78k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

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

Recommended offer $78,307 (1.5% below list)

Questions for the listing agent

1. Built in 1900 — 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: 1.03% ✓
• Cap rate: 8.81%
• Cash-on-cash: 8.99%
• DSCR: 1.40
• GRM: 8.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -2.7%
• Equity multiple: 0.90×
• Total profit: $-2,286
• Equity at exit: $11,854

10-year hold

• IRR: 6.9%
• Equity multiple: 1.52×
• Total profit: $11,572
• Equity at exit: $6,874

Cash invested: $22,260 (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 56256

• Home prices YoY: -10.3%
• Active inventory: 16
• Price-to-rent: 8.1×

Monthly cashflow live

• Estimated rent: $820 medium
• Mortgage (P&I): −$417
• Tax from tax record: −$31 /mo · $372/yr
• Insurance: −$33
• HOA: −$0
• Vacancy / Maint / Mgmt: −$172
• Net cashflow: $167

Break-even live

Break-even rent $609

Max offer price $79,500

Occupancy floor 75%

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: $19,875
• Closing costs: $2,385
• Reserves months: —
• Total cash needed: —

Listing history 13 events

1. 2026-06-18
   days on market $79,500 Active 17 DOM
2. 2026-06-17
   days on market $79,500 Active 16 DOM
3. 2026-06-16
   days on market $79,500 Active 15 DOM
4. 2026-06-15
   days on market $79,500 Active 14 DOM
5. 2026-06-13
   days on market $79,500 Active 12 DOM
6. 2026-06-12
   days on market $79,500 Active 11 DOM
7. 2026-06-09
   days on market $79,500 Active 8 DOM
8. 2026-06-08
   days on market $79,500 Active 7 DOM
9. 2026-06-07
   days on market $79,500 Active 6 DOM
10. 2026-06-07
    days on market $79,500 Active 5 DOM
11. 2026-06-04
    days on market $79,500 Active 2 DOM
12. 2026-06-02
    remarks 699-char remark
13. 2026-06-02
    listed $79,500 Active 1 DOM

ⓘ 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: $372 · $31/mo
• Projected year-2 tax: $631 · $53/mo
• Expected delta: +$259/yr (+$22/mo · 69.7%)

ⓘ 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 · 13 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: $9,841
• − Mortgage interest: −$4,453
• − Property taxes: −$372
• − Insurance: −$398
• − Repairs & maintenance: −$787
• − Management: −$787
• − Depreciation: −$2,313
• Taxable income: $731
• Est. tax owed @ 24.0%: −$175
• After-tax cash flow: $1,827/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: Lac Qui Parle Valley School District
• NCES district ID: 2700125
• Math proficiency: 44% ▼ -14.00%
• Reading proficiency: 44% ▼ -9.00%
• Median HH income: $44,760
• Composite: 37.32/100
• National rank: #4444
• State rank: #193 of 301 in MN

Livability — Madison

• Score: 76/100
• State rank: #175
• US rank: #3796

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Madison, MN
• Population (ZIP): 2,352

Population outlook (Lac qui Parle County) Hauer SSP2

• Today (2025): 6,291 people
• By 2030: 6,021 · -4.3%
• By 2040: 5,517 · -12.3%
• By 2050: 5,094 · -19.0%
• By 2075: 4,640 · -26.2%
• By 2100: 4,173 · -33.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (97%)
• Race & ethnicity: White 97%
• Common ancestry: Portuguese 35% Iranian 2% Scottish 1%
• Foreign-born: 1%
• Languages at home: 98% English-only · Other Indo-European 1% Spanish 1%

Political lean MEDSL · Lac qui Parle

• 2024 margin: Solid R (+32.2) · D 32.9% · R 65.2% · Other 1.9%
• 2008→2024 swing: -38.2pp toward R · 2008: 5.9pp · 2024: -32.2pp
• All cycles: 2024: R+32.2 2020: R+26.8 2016: R+25.9 2012: D+0.9 2008: D+5.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -21.74%
• Current HPI: 189.1868
• 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

1 event — show timeline

• 2026-06-01 Listed $79,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-4.7%/yr

Latest (2026): $372 · +23.6% YoY. Source: county tax records.