2025 Clayton - 3/2 Plan · Owatonna, MN 55060

$97,999

3 bd · 2.0 ba · 1,120 sqft · Manufactured · 197 Days on market

Good condition

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Why this score? — see what drove the B- 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 +29.9/30.0
• DSCR +10.0/10.0
• 1% rule +8.4/10.0
• ARV discount +7.5/15.0
• Condition / age +4.0/5.0
• Livability +3.8/5.0
• Schools +3.7/10.0
• Rent growth +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Step inside this spacious 3 bedroom, 2 bathroom home, where modern comfort meets everyday convenience! Featuring an open floor plan, quality craftsmanship, and plenty of room to relax or entertain - this home offers everything you've been looking for. Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Open Concept * Modern Finishes And it's not just the home you'll love - the community has just as much to offer! Community Features You'll Love: * Clean, Quiet, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining Ready to move in? Your new home is waiting - book your private tour today! Bonus Incoming! Get 3 months of lot rent FREE if you close by 4/1/2026 * A $1,815 value! * Applicants must apply and be an approved applicant with a new home purchase that will be closed on or before April 1, 2026. Buyer will receive 3 months of lot rent free upon successful closing. See office for full details.

Key facts

• Open concept
• Modern finishes
• Listed 196 days

Tags

• STAINLESS STEEL APPLIANCES
• OPEN CONCEPT
• MODERN FINISHES

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath manufactured listed at $98k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $364 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $98k).
• Recommended offer: $86k (12.0% below list) — sets the bar for market timing.
• Cap rate 10.7% vs local median 3.2% in Owatonna — 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 76/100 on livability (#155 in MN, #3,413 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities D-, commute F, health & safety D-.
• Owatonna Public School District (town): math 38% / reading 47% proficiency, ranked #194 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 224 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 28 units permitted in Steele County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $677 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Steele County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $27k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• It's been on market 197 days — a 12% lower offer ($86k) is reasonable based on typical stale-listing flexibility.

Recommended offer $86,239 (12.0% below list)

Questions for the listing agent

1. It's been on market 197 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are B-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. 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: 1.34% ✓
• Cap rate: 10.75%
• Cash-on-cash: 15.91%
• DSCR: 1.71
• GRM: 6.2

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: 6.8%
• Equity multiple: 1.27×
• Total profit: $7,306
• Equity at exit: $14,612

10-year hold

• IRR: 16.2%
• Equity multiple: 2.32×
• Total profit: $36,272
• Equity at exit: $8,473

Cash invested: $27,440 (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 55060

• Home prices YoY: -30.5%
• Active inventory: 224
• Price-to-rent: 6.2×

Monthly cashflow live

• Estimated rent: $1,318 high
• Mortgage (P&I): −$514
• Tax est. 1.5%: −$122 /mo · $1,470/yr
• Insurance: −$41
• HOA: −$0
• Vacancy / Maint / Mgmt: −$277
• Net cashflow: $364

Break-even live

Break-even rent $857

Max offer price $97,999

Occupancy floor 67%

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: $24,500
• Closing costs: $2,940
• Reserves months: —
• Total cash needed: —

Rent comps 7 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
2126 3rd Ave NW Owatonna, MN	2.0–3.0	2.0	1264	$1,210	$0.96	44d	1	0.03mi
592 Adams Ave NW Owatonna, MN	4.0	1.0	1100	$1,700	$1.55	44d	1	0.96mi
312 Riverside Ave Unit 1 Owatonna, MN	2.0	1.0	1000	$1,300	$1.30	44d	1	1.21mi
1575 24th Ave NW Unit 207 Owatonna, MN	2.0	2.0	996	$1,585	$1.59	44d	1	1.22mi
230 E Rose St Unit 2 Owatonna, MN	2.0	1.0	850	$975	$1.15	44d	1	1.26mi
236 E Rose St Unit 236 1/2 Owatonna, MN	2.0	1.0	900	$1,100	$1.22	44d	1	1.27mi
325 Florence Ave Unit 313 Owatonna, MN	2.0	2.0	1046	$1,605	$1.53	44d	1	1.37mi

Listing history 17 events

1. 2026-06-19
   days on market $97,999 Active 197 DOM
2. 2026-06-18
   days on market $97,999 Active 196 DOM
3. 2026-06-17
   days on market $97,999 Active 195 DOM
4. 2026-06-16
   days on market $97,999 Active 194 DOM
5. 2026-06-15
   days on market $97,999 Active 193 DOM
6. 2026-06-14
   days on market $97,999 Active 191 DOM
7. 2026-06-12
   days on market $97,999 Active 190 DOM
8. 2026-06-09
   days on market $97,999 Active 187 DOM
9. 2026-06-08
   days on market $97,999 Active 186 DOM
10. 2026-06-07
    days on market $97,999 Active 185 DOM
11. 2026-06-05
    days on market $97,999 Active 182 DOM
12. 2026-06-03
    days on market $97,999 Active 181 DOM
13. 2026-06-02
    days on market $97,999 Active 180 DOM
14. 2026-06-01
    days on market $97,999 Active 179 DOM
15. 2026-05-31
    days on market $97,999 Active 178 DOM
16. 2026-05-30
    days on market $97,999 Active 177 DOM
17. 2025-12-04
    listed $97,999 Active 1025-char remark

    Show marketing remark (1025 chars)

    Step inside this spacious 3 bedroom, 2 bathroom home, where modern comfort meets everyday convenience! Featuring an open floor plan, quality craftsmanship, and plenty of room to relax or entertain - this home offers everything you've been looking for. Home Features You'll Love: * Stainless Steel Appliances * Large Kitchen w/ Custom Cabinetry * Open Concept * Modern Finishes And it's not just the home you'll love - the community has just as much to offer! Community Features You'll Love: * Clean, Quiet, & Well-Maintained * Friendly Neighborhood Atmosphere * Convenient Location for Shopping & Dining Ready to move in? Your new home is waiting - book your private tour today! Bonus Incoming! Get 3 months of lot rent FREE if you close by 4/1/2026 * A $1,815 value! * Applicants must apply and be an approved applicant with a new home purchase that will be closed on or before April 1, 2026. Buyer will receive 3 months of lot rent free upon successful closing. See office for full details.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

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 ≥100°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,812
• − Mortgage interest: −$5,489
• − Property taxes: −$1,470
• − Insurance: −$490
• − Repairs & maintenance: −$1,265
• − Management: −$1,265
• − Depreciation: −$2,851
• Taxable income: $2,982
• Est. tax owed @ 24.0%: −$716
• After-tax cash flow: $3,649/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.

Condition & rehab AI · 12 photos

Good 80/100 Cosmetic rehab

This 3-bedroom, 2-bathroom home is in excellent condition with modern finishes and a spacious floor plan. It's move-in ready and offers a great value for both resale and rental markets.

Value-add opportunities

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics.
• Both Upgrading the flooring in the bathrooms — Modern flooring can improve both resale and rental value.
• Both Adding smart home features — Smart home features can increase both resale and rental appeal by offering modern conveniences.

Renovation cost estimate screening

Value-add ROI direction

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics. ↑
• Both Upgrading the flooring in the bathrooms — Modern flooring can improve both resale and rental value. ↑
• Both Adding smart home features — Smart home features can increase both resale and rental appeal by offering modern conveniences. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Owatonna Public School District
• NCES district ID: 2728050
• Math proficiency: 38% ▼ -12.00%
• Reading proficiency: 47% ▼ -7.00%
• Median HH income: $56,373
• Composite: 37.14/100
• National rank: #4487
• State rank: #194 of 301 in MN

Livability — Owatonna

• Score: 76/100
• State rank: #155
• US rank: #3413

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Owatonna, MN
• County: Steele County · 29,599 people
• City population: 29,599
• Metro: Owatonna, MN
• Population (ZIP): 29,599
• Household income: $84,906
• Rent vs Own: 22.8% rent · 77.2% own
• Severe rent burden: 598.0

Population outlook (Steele County) Hauer SSP2

• Today (2025): 36,618 people
• By 2030: 36,195 · -1.2%
• By 2040: 34,882 · -4.7%
• By 2050: 33,052 · -9.7%
• By 2075: 29,692 · -18.9%
• By 2100: 25,581 · -30.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Hispanic / Latino 8% Two or more races 5% Black 4%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 16% Romanian 3% Italian 2%
• Foreign-born: 5% · Canada, South Korea
• Languages at home: 93% English-only · Spanish 4%

Political lean MEDSL · Steele

• 2024 margin: Strong R (+24.5) · D 36.8% · R 61.2% · Other 2.0%
• 2008→2024 swing: -19.1pp toward R · 2008: -5.3pp · 2024: -24.5pp
• All cycles: 2024: R+24.5 2020: R+22.4 2016: R+26.0 2012: R+6.3 2008: R+5.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -92.54%
• Current HPI: 211.0177
• Rent YoY: —
• Metro: Owatonna, 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

1 event — show timeline

• 2025-12-04 Listed $97,999 Zillow