109 S Central Ave · Dalton, MN 56324

$84,900

1 bd · 1.0 ba · 504 sqft · SingleFamily public records · 23 Days on market

Built 1945 4,356 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 +18.4/30.0
• Appreciation +7.8/10.0
• ARV discount +7.5/15.0
• DSCR +5.8/10.0
• Schools +5.1/10.0
• 1% rule +4.1/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

Welcome home to this charming 1-bedroom, 1-bath single-level residence in the heart of Dalton! Ideally located near the city park, the Central Lakes Trail, downtown shopping, and local dining, this property offers the perfect blend of small-town charm and convenient access to everyday amenities in Minnesota's beautiful lakes country. Recent updates include a newer electrical panel, updated windows, flooring improvements, and a wheelchair-accessible ramp, adding comfort and functionality to the home. Whether you're searching for an affordable place to call home, a seasonal retreat, or an investment property with rental potential, this home offers plenty of possibilities. Don't miss the oppor

Key facts

• Updated windows
• Downtown shopping
• Central lakes trail

Tags

• CENTRAL LAKES TRAIL
• DOWNTOWN SHOPPING
• LOCAL DINING
• NEWER ELECTRICAL PANEL
• UPDATED WINDOWS
• FLOORING IMPROVEMENTS

Property features AI

Finance

• Other: Living area approx. 740 sq ft (above grade finished area); Below-grade area approx. 289; Total building area approx. 1,049; Accessibility features included

Exterior

• Parking: Gravel parking
• Utilities: City water available at street; City sewer (connected); 100 Amp electric service; Propane fuel
• Home design: Residential property; One story; Main-level entry
• Construction: Block foundation; Asphalt roof (over 8 years old); Wood construction; Built area includes finished main level and additional below-grade space
• Exterior features: Wood exterior; Porch; City street frontage (public maintained road); Lot about 0.1 acre (approx. 61 x 71)

Interior

• Kitchen: Kitchen (18 x 8'7")
• Bedrooms: One bedroom on the main level (8.5 x 9.5)
• Bathrooms: One full bathroom
• Heating & cooling: Forced air heating; Window air conditioning unit(s)
• Interior features: Main-floor primary bedroom; Porch; Wheelchair ramp(s); Kitchen/dining room combined; Block basement
• Laundry & utility: No laundry facilities

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $85k.

Deal economics

• At list price, monthly cash flow is $79 ($944/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 $77k (8.8% below list).
• Recommended offer: $77k (8.8% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 63/100 on livability (#668 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime D+, health & safety D+, employment D.
• Fergus Falls Public School District (town): math 59% / reading 61% proficiency, ranked #46 of 301 in MN (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cleveland Elementary (math 71% / reading 60%, grade B+, #123 of 857 statewide, top 15%, 369 students, 47% FRL); Kennedy Middle School (math 57% / reading 63%, grade B, #25 of 258 statewide, top 9%, 769 students, 43% FRL); Kennedy High School (math 52% / reading 62%, grade C, #64 of 471 statewide, top 16%, 685 students, 33% FRL) — zoned schools average 41% FRL vs 24% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 12 active listings in the ZIP; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• In year one you build about $5k of equity ($587 loan paydown + $5k appreciation (5.7% local appreciation)).
• At projected returns (5.7% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 23 days — a 2% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $16k; list at $85k implies a 448% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $77,420 (8.8% below list)

Questions for the listing agent

1. Built in 1945 — 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. Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. 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.
6. 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.
7. 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: 7.41%
• Cash-on-cash: 3.97%
• DSCR: 1.18
• GRM: 9.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

5.68% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 17.9%
• Equity multiple: 2.17×
• Total profit: $27,915
• Equity at exit: $51,683

10-year hold

• IRR: 17.6%
• Equity multiple: 4.31×
• Total profit: $78,593
• Equity at exit: $92,300

Cash invested: $23,772 (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 56324

• Home prices YoY: 2.8%
• Active inventory: 12
• Price-to-rent: 9.1×

Monthly cashflow live

• Estimated rent: $774 medium
• Mortgage (P&I): −$445
• Tax from tax record: −$52 /mo · $628/yr
• Insurance: −$35
• HOA: −$0
• Vacancy / Maint / Mgmt: −$163
• Net cashflow: $79

Break-even live

Break-even rent $675

Max offer price $84,900

Occupancy floor 85%

Sensitivity live

Price	-10% $127	-5% $103	+0% $79	+5% $55	+10% $31
Rent	-10% $18	-5% $48	+0% $79	+5% $109	+10% $140
Rate	-1.0pp $121	-0.5pp $100	base $79	+0.5pp $57	+1.0pp $34

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: $21,225
• Closing costs: $2,547
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-22
   days on market $84,900 Active 23 DOM
2. 2026-06-21
   days on market $84,900 Active 22 DOM
3. 2026-06-19
   days on market $84,900 Active 20 DOM
4. 2026-06-18
   days on market $84,900 Active 19 DOM
5. 2026-06-17
   days on market $84,900 Active 18 DOM
6. 2026-06-16
   days on market $84,900 Active 17 DOM
7. 2026-06-15
   days on market $84,900 Active 16 DOM
8. 2026-06-14
   pricedays on market $84,900 Active 14 DOM
9. 2026-06-12
   days on market $90,000 Active 13 DOM
10. 2026-06-09
    days on market $90,000 Active 10 DOM
11. 2026-06-08
    days on market $90,000 Active 9 DOM
12. 2026-06-07
    days on market $90,000 Active 8 DOM
13. 2026-06-07
    days on market $90,000 Active 7 DOM
14. 2026-06-04
    days on market $90,000 Active 4 DOM
15. 2026-06-02
    days on market $90,000 Active 3 DOM
16. 2026-06-01
    days on market $90,000 Active 2 DOM
17. 2026-05-31
    remarks 699-char remark
18. 2026-05-31
    listed $90,000 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: $628 · $52/mo
• Projected year-2 tax: $789 · $66/mo
• Expected delta: +$161/yr (+$13/mo · 25.7%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥97°F today · 13 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $9,290
• − Mortgage interest: −$4,756
• − Property taxes: −$628
• − Insurance: −$424
• − Repairs & maintenance: −$743
• − Management: −$743
• − Depreciation: −$2,470
• Taxable loss: −$474
• Est. tax savings @ 24.0%: +$114
• After-tax cash flow: $1,058/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: Fergus Falls Public School District
• NCES district ID: 2711880
• Math proficiency: 59% ▬ 0.00%
• Reading proficiency: 61% ▼ -4.00%
• Median HH income: $48,044
• Composite: 50.89/100
• National rank: #1790
• State rank: #46 of 301 in MN

Livability — Dalton

• Score: 63/100
• State rank: #668
• US rank: #16081

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Dalton, MN
• Population (ZIP): 1,116

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (96%)
• Race & ethnicity: White 96% Two or more races 4%
• Common ancestry: Portuguese 33% Romanian 3% Iranian 3%
• Foreign-born: 0%
• Languages at home: 99% English-only · Other Indo-European 1%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 5.68%
• Current HPI: 210.6651
• 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

+339.0% since first listed

3 events — show timeline

• 2026-05-30 Listed $90,000 NORTHSTARMLS as Distributed by MLS Grid
• 2015-07-20 Sold (Public Records) $15,500 Public Records
• 2004-04-14 Sold (Public Records) $20,500 Public Records

Property tax history

-0.5%/yr

Latest (2025): $628 · +3.0% YoY. Source: county tax records.