1309 2nd St NE · Rochester, MN 55906

$170,000

2 bd · 1.0 ba · 400 sqft · SingleFamily public records · 20 Days on market

Built 1941 6,359 sqft lot $425/sqft · 83% above area Est $267k · 36% under

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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).

• ARV discount +15.0/15.0
• Cash flow +9.9/30.0
• Rent growth +4.8/5.0
• Livability +4.6/5.0
• Schools +4.1/10.0
• DSCR +2.8/10.0
• Condition / age +2.5/5.0
• 1% rule +2.2/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

Key facts

• Original hardwoods
• Arched doorways
• Real backyard

Tags

• REAL BACKYARD
• FENCED ON THREE SIDES
• PLENTY OF ROOM FOR GARDENS
• ORIGINAL HARDWOODS
• ARCHED DOORWAYS
• ORIGINAL TRIM

Property features AI

Finance

• Other: Above grade finished area approximately 800; Below grade finished area approximately 350; Total living area about 1,150; Lot roughly 0.146 acres (approx. 40x160)
• Financial info: Conventional mortgage type

Exterior

• Parking: Detached 1-car garage (approximately 10x20)
• Utilities: City water (connected); City sewer (connected); Natural gas; Electric with circuit breakers; Power provided by Rochester Public Utilities
• Home design: Residential property; One and one-half levels; Main level and lower level living areas
• Construction: Block foundation; Block foundation area approximately 400; Asphalt roof (over 8 years old)
• Exterior features: Partial chain link fencing; Detached garage structure on property

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: 2 bedrooms
• Bathrooms: One 3/4 bathroom (basement)
• Heating & cooling: Forced air heating; Window AC unit(s)
• Interior features: Electric water heater; Range; Refrigerator
• Laundry & utility: Washer in basement

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 $-107 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $151k (11.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $122k (28.4% below list).
• Recommended offer: $122k (28.4% below list) — sets the bar for 1% rule.
• Cap rate 5.5% vs local median 3.6% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Jefferson Elementary (math 61% / reading 70%, grade B+, #123 of 857 statewide, top 15%, 525 students, 36% FRL); Kellogg Middle (math 42% / reading 53%, grade C-, #93 of 258 statewide, top 37%, 856 students, 43% FRL); Century Senior High (math 37% / reading 67%, grade D+, #111 of 471 statewide, top 26%, 1,698 students, 31% FRL).
• Market conditions: Rents rising fast (+9.2%/yr); 222 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• This rent is only 16% of the median local income ($94k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 20 days — a 2% lower offer ($167k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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.

Risks & watch-outs

• Watch-outs: built in 1941 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $121,648 (28.4% below list)

Questions for the listing agent

1. 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?
2. Built in 1941 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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: 0.72% ✗
• Cap rate: 5.54%
• Cash-on-cash: -2.69%
• DSCR: 0.88
• GRM: 11.6

CMA / ARV

• ARV (median comp): $266,603
• List price: $170,000
• Delta: -36.23%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: -15.9%
• Equity multiple: 0.41×
• Total profit: $-27,958
• Equity at exit: $25,348

10-year hold

• IRR: -1.0%
• Equity multiple: 0.92×
• Total profit: $-4,025
• Equity at exit: $14,698

Cash invested: $47,600 (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 55906

• Home prices YoY: -33.0%
• Rents YoY: 9.2%
• Active inventory: 222
• Price-to-rent: 11.6×

Monthly cashflow live

• Estimated rent: $1,216 medium
• Mortgage (P&I): −$891
• Tax from tax record: −$105 /mo · $1,264/yr
• Insurance: −$71
• HOA: −$0
• Vacancy / Maint / Mgmt: −$255
• Net cashflow: $-107

Break-even live

Break-even rent $1,351

Max offer price $151,161

Occupancy floor —

Sensitivity live

Price	-10% $-10	-5% $-59	+0% $-107	+5% $-155	+10% $-203
Rent	-10% $-203	-5% $-155	+0% $-107	+5% $-59	+10% $-11
Rate	-1.0pp $-21	-0.5pp $-63	base $-107	+0.5pp $-151	+1.0pp $-196

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: $42,500
• Closing costs: $5,100
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
212 7th St NW Unit 3 Rochester, MN	1.0	1.0	350	$950	$2.71	45d	1	1.07mi
603 1st St SW Rochester, MN	2.0	1.0	512	$1,295	$2.53	15d	3	1.28mi

Listing history 8 events

1. 2026-05-16
   historical Contingent - Inspection 467-char remark
2. 2026-05-07
   listed $170,000 Active 467-char remark
3. 2025-08-01
   soldstatus $150,000
4. 2025-07-25
   soldstatus $150,000 Sold 919-char remark

   Show marketing remark (919 chars)

   Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

5. 2025-07-03
   status Pending 919-char remark

   Show marketing remark (919 chars)

   Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

6. 2025-06-29
   historical Contingent - Inspection 919-char remark

   Show marketing remark (919 chars)

   Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

7. 2025-06-27
   listed $147,500 Active 919-char remark

   Show marketing remark (919 chars)

   Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

8. 2025-06-24
   historical $147,500 919-char remark

   Show marketing remark (919 chars)

   Opportunity Knocks! If you've been dreaming of homeownership and the chance to build real equity, this could be the one you've been waiting for. Full of charm and potential, this story-and-a-quarter home offers a unique layout reminiscent of a cozy tiny home—with a private upper-level retreat perfect for a studio, home office, or quiet getaway. Yes, it needs a little TLC, but inside you'll find character that’s hard to come by: original hardwood floors, sun-filled rooms, and beautiful rounded archways. Outside, enjoy a nicely sized yard—ideal for gardening, play, or simply relaxing. Located within walking distance to Silver Lake Park, scenic trails, and downtown amenities, this home offers both convenience and lifestyle. Bring your vision and a little elbow grease—this gem is ready for its next chapter. Don’t miss the chance to create something special and make it your own.

ⓘ 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: $1,264 · $105/mo
• Projected year-2 tax: $1,584 · $132/mo
• Expected delta: +$320/yr (+$27/mo · 25.3%)

ⓘ 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 ≥98°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: $14,598
• − Mortgage interest: −$9,523
• − Property taxes: −$1,264
• − Insurance: −$850
• − Repairs & maintenance: −$1,168
• − Management: −$1,168
• − Depreciation: −$4,945
• Taxable loss: −$4,320
• Est. tax savings @ 24.0%: +$1,037
• After-tax cash flow: $-243/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 20,437
• Household income: $93,685
• Rent vs Own: 25.0% rent · 75.0% own
• Severe rent burden: 438.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (75%)
• Race & ethnicity: White 75% Asian 8% Black 6% Two or more races 6% Hispanic / Latino 5%
• Common ancestry: Portuguese 14% Romanian 3% Italian 2%
• Foreign-born: 11% · China, Canada
• Languages at home: 86% English-only · Spanish 3% Chinese 3% Other Asian/Pacific 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -124.46%
• Current HPI: 252.9003
• Rent YoY: ▲ 9.18%
• Metro: Rochester, 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

+15.3% since first listed

9 events — show timeline

• 2026-05-28 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-16 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-07 Listed $170,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-08-01 Sold (Public Records) $150,000 Public Records
• 2025-07-25 Sold (MLS) $150,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-03 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-29 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-27 Listed $147,500 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-24 Coming Soon $147,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+8.1%/yr

Latest (2025): $1,264 · +6.2% YoY. Source: county tax records.