426 Webster St · Fairmont, MN 56031

$129,900

3 bd · 2.0 ba · 1,181 sqft · Other public records · 44 Days on market

Built 1939 4,878 sqft lot $110/sqft · 18% above area Est $200k · 35% under

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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 +15.3/30.0
• ARV discount +15.0/15.0
• DSCR +4.7/10.0
• Schools +4.1/10.0
• 1% rule +3.7/10.0
• 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

Welcome to this great 3+ bedroom home located in the heart of town! The main floor offers a spacious living room, a designated dining area, and kitchen. You’ll also find a full bath, a main-floor bedroom, and a versatile pass-through room—perfect as a home office or bonus space—leading out to the porch and back deck. Upstairs features an additional bedroom along with a loft area that provides great flexibility for a playroom, office, or extra sleeping quarters. Fresh paint throughout and brand-new carpet on the upper level make this home move-in ready with minimal effort needed. The partially finished basement adds even more usable space, complete with a 3/4 bath, laundry area, and plenty of storage. Outside, enjoy the back deck along with a single-car garage for added convenience.

Key facts

• Laundry area
• Single-car garage
• Back deck

Tags

• DESIGNATED DINING AREA
• VERSATILE PASS-THROUGH ROOM
• BACK DECK
• PARTIALLY FINISHED BASEMENT
• LAUNDRY AREA
• SINGLE-CAR GARAGE

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath other listed at $130k.

Deal economics

• At list price, monthly cash flow is $48 ($574/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 $114k (12.6% below list).
• Recommended offer: $114k (12.6% below list) — sets the bar for 1% rule.
• Cap rate 6.7% vs local median 3.4% in Fairmont — 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 (#407 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, amenities F.
• Fairmont Area School District (town): math 45% / reading 51% proficiency, ranked #148 of 301 in MN (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 94 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $898 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Martin 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 44 days — a 3% lower offer ($126k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 11y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $63k; list at $130k implies a 106% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1939 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $113,523 (12.6% below list)

Questions for the listing agent

1. It's been on market 44 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
2. Built in 1939 — 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. 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: 0.87% ✗
• Cap rate: 6.73%
• Cash-on-cash: 1.58%
• DSCR: 1.07
• GRM: 9.5

CMA / ARV

• ARV (median comp): $199,671
• List price: $129,900
• Delta: -34.94%
• Verdict: UNDERPRICED
• Comps: 3 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -13.8%
• Equity multiple: 0.50×
• Total profit: $-18,016
• Equity at exit: $19,369

10-year hold

• IRR: -5.0%
• Equity multiple: 0.68×
• Total profit: $-11,817
• Equity at exit: $11,231

Cash invested: $36,372 (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 56031

• Active inventory: 94
• Price-to-rent: 9.5×

Monthly cashflow live

• Estimated rent: $1,135 medium
• Mortgage (P&I): −$681
• Tax from tax record: −$114 /mo · $1,364/yr
• Insurance: −$54
• HOA: −$0
• Vacancy / Maint / Mgmt: −$238
• Net cashflow: $48

Break-even live

Break-even rent $1,075

Max offer price $129,900

Occupancy floor 91%

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: $32,475
• Closing costs: $3,897
• Reserves months: —
• Total cash needed: —

Listing history 8 events

1. 2026-04-27
   price $129,900 810-char remark

   Show marketing remark (810 chars)

   Welcome to this great 3+ bedroom home located in the heart of town! The main floor offers a spacious living room, a designated dining area, and kitchen. You’ll also find a full bath, a main-floor bedroom, and a versatile pass-through room—perfect as a home office or bonus space—leading out to the porch and back deck. Upstairs features an additional bedroom along with a loft area that provides great flexibility for a playroom, office, or extra sleeping quarters. Fresh paint throughout and brand-new carpet on the upper level make this home move-in ready with minimal effort needed. The partially finished basement adds even more usable space, complete with a 3/4 bath, laundry area, and plenty of storage. Outside, enjoy the back deck along with a single-car garage for added convenience.

2. 2026-04-22
   price $134,000 810-char remark

   Show marketing remark (810 chars)

   Welcome to this great 3+ bedroom home located in the heart of town! The main floor offers a spacious living room, a designated dining area, and kitchen. You’ll also find a full bath, a main-floor bedroom, and a versatile pass-through room—perfect as a home office or bonus space—leading out to the porch and back deck. Upstairs features an additional bedroom along with a loft area that provides great flexibility for a playroom, office, or extra sleeping quarters. Fresh paint throughout and brand-new carpet on the upper level make this home move-in ready with minimal effort needed. The partially finished basement adds even more usable space, complete with a 3/4 bath, laundry area, and plenty of storage. Outside, enjoy the back deck along with a single-car garage for added convenience.

3. 2026-04-06
   listed $139,900 Active 810-char remark

   Show marketing remark (810 chars)

   Welcome to this great 3+ bedroom home located in the heart of town! The main floor offers a spacious living room, a designated dining area, and kitchen. You’ll also find a full bath, a main-floor bedroom, and a versatile pass-through room—perfect as a home office or bonus space—leading out to the porch and back deck. Upstairs features an additional bedroom along with a loft area that provides great flexibility for a playroom, office, or extra sleeping quarters. Fresh paint throughout and brand-new carpet on the upper level make this home move-in ready with minimal effort needed. The partially finished basement adds even more usable space, complete with a 3/4 bath, laundry area, and plenty of storage. Outside, enjoy the back deck along with a single-car garage for added convenience.

4. 2019-02-02
   historical
5. 2015-08-24
   listed $79,900
6. 2003-01-30
   soldstatus $63,000
7. 1995-12-01
   soldstatus $49,500
8. 1993-10-26
   soldstatus $47,000

ⓘ 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: $1,364 · $114/mo
• Projected year-2 tax: $1,409 · $117/mo
• Expected delta: +$45/yr (+$4/mo · 3.3%)

ⓘ 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 · 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 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,623
• − Mortgage interest: −$7,276
• − Property taxes: −$1,364
• − Insurance: −$650
• − Repairs & maintenance: −$1,090
• − Management: −$1,090
• − Depreciation: −$3,779
• Taxable loss: −$1,626
• Est. tax savings @ 24.0%: +$390
• After-tax cash flow: $964/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: Fairmont Area School District
• NCES district ID: 2700124
• Math proficiency: 45% ▼ -13.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $46,280
• Composite: 40.76/100
• National rank: #3648
• State rank: #148 of 301 in MN

Livability — Fairmont

• Score: 68/100
• State rank: #407
• US rank: #9480

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Fairmont, MN
• City population: 11,800
• Population (ZIP): 11,800

Population outlook (Martin County) Hauer SSP2

• Today (2025): 18,583 people
• By 2030: 17,814 · -4.1%
• By 2040: 16,312 · -12.2%
• By 2050: 15,021 · -19.2%
• By 2075: 13,025 · -29.9%
• By 2100: 11,311 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Hispanic / Latino 8% Two or more races 3%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 11% Romanian 6% Italian 2%
• Foreign-born: 3% · Canada, China
• Languages at home: 93% English-only · Spanish 5%

Political lean MEDSL · Martin

• 2024 margin: Solid R (+39.7) · D 29.5% · R 69.1% · Other 1.4%
• 2008→2024 swing: -24.4pp toward R · 2008: -15.2pp · 2024: -39.7pp
• All cycles: 2024: R+39.7 2020: R+37.9 2016: R+41.4 2012: R+23.8 2008: R+15.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -143.34%
• Current HPI: 191.514
• 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

+176.4% since first listed

8 events — show timeline

• 2026-04-27 Price Changed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-22 Price Changed $134,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-06 Listed $139,900 NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2015-08-24 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2003-01-30 Sold (Public Records) $63,000 Public Records
• 1995-12-01 Sold (Public Records) $49,500 Public Records
• 1993-10-26 Sold (Public Records) $47,000 Public Records

Property tax history

+7.7%/yr

Latest (2025): $1,364 · +0.1% YoY. Source: county tax records.