603 2nd St SE · Baudette, MN 56623

$89,500

2 bd · 1.0 ba · 1,008 sqft · SingleFamily · 143 Days on market

Built 1994 0.32 ac 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 +22.6/30.0
• ARV discount +7.5/15.0
• DSCR +7.2/10.0
• 1% rule +5.4/10.0
• Livability +3.7/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Affordable 2 bedroom 1 bath home resting on a 100'x140' corner lot in East Baudette. Property also offers 2 stall detached garage and large yard.

Key facts

• 0.32 acre lot
• 2 garage spots
• Built 1994

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $90k.

Deal economics

• At list price, monthly cash flow is $152 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($934 rent vs $90k).
• Recommended offer: $79k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 73/100 on livability (#243 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime D+, amenities F, commute F.
• Lake Of The Woods School District (rural): math 30% / reading 39% proficiency, ranked #259 of 301 in MN (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lake of The Woods Elementary (math 37% / reading 42%, grade F, #604 of 857 statewide, top 74%, 255 students, 45% FRL); Lake of The Woods Secondary (math 22% / reading 32%, grade F, #369 of 471 statewide, top 79%, 191 students, 40% FRL).
• Market conditions: 99 active listings in the ZIP; 13 units permitted in Lake of the Woods County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $619 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Lake of the Woods County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 143 days — a 12% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 15y ago; this cycle's ask has dropped $10k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $56k; list at $90k implies a 61% gain — meaningful room to come down on a strong offer.

Recommended offer $78,760 (12.0% below list)

Questions for the listing agent

1. It's been on market 143 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. 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: 1.04% ✓
• Cap rate: 8.33%
• Cash-on-cash: 7.29%
• DSCR: 1.32
• GRM: 8.0

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: -5.1%
• Equity multiple: 0.81×
• Total profit: $-4,810
• Equity at exit: $13,345

10-year hold

• IRR: 4.5%
• Equity multiple: 1.33×
• Total profit: $8,276
• Equity at exit: $7,738

Cash invested: $25,060 (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 56623

• Home prices YoY: -15.0%
• Active inventory: 99
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $934 medium
• Mortgage (P&I): −$469
• Tax from tax record: −$79 /mo · $948/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$196
• Net cashflow: $152

Break-even live

Break-even rent $741

Max offer price $89,500

Occupancy floor 79%

Sensitivity live

Price	-10% $203	-5% $178	+0% $152	+5% $127	+10% $102
Rent	-10% $78	-5% $115	+0% $152	+5% $189	+10% $226
Rate	-1.0pp $197	-0.5pp $175	base $152	+0.5pp $129	+1.0pp $105

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: $22,375
• Closing costs: $2,685
• Reserves months: —
• Total cash needed: —

Listing history 7 events

1. 2026-02-16
   status Pending
2. 2025-11-12
   price $89,500
3. 2025-09-26
   listed $99,500 Active
4. 2015-09-29
   soldstatus $55,624
5. 2011-08-28
   historical
6. 2011-02-27
   listed $59,900
7. 2011-02-27
   listed $59,900

ⓘ 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: $948 · $79/mo
• Projected year-2 tax: $975 · $81/mo
• Expected delta: +$27/yr (+$2/mo · 2.9%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥93°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,209
• − Mortgage interest: −$5,013
• − Property taxes: −$948
• − Insurance: −$448
• − Repairs & maintenance: −$897
• − Management: −$897
• − Depreciation: −$2,604
• Taxable income: $403
• Est. tax owed @ 24.0%: −$97
• After-tax cash flow: $1,731/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: Lake Of The Woods School District
• NCES district ID: 2717570
• Math proficiency: 30% ▼ -9.00%
• Reading proficiency: 39% ▼ -9.00%
• Median HH income: $45,937
• Composite: 29.52/100
• National rank: #6498
• State rank: #259 of 301 in MN

Livability — Baudette

• Score: 73/100
• State rank: #243
• US rank: #5219

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Baudette, MN
• Population (ZIP): 2,684

Population outlook (Lake of the Woods County) Hauer SSP2

• Today (2025): 3,706 people
• By 2030: 3,565 · -3.8%
• By 2040: 3,224 · -13.0%
• By 2050: 2,957 · -20.2%
• By 2075: 2,685 · -27.5%
• By 2100: 2,544 · -31.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 7%
• Common ancestry: Portuguese 22% Scottish 6% Romanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 99% English-only · Spanish 1%

Political lean MEDSL · Lake of the Woods

• 2024 margin: Solid R (+47.1) · D 25.8% · R 72.9% · Other 1.4%
• 2008→2024 swing: -33.9pp toward R · 2008: -13.3pp · 2024: -47.1pp
• All cycles: 2024: R+47.1 2020: R+42.9 2016: R+44.3 2012: R+20.1 2008: R+13.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -32.47%
• Current HPI: 184.2846
• 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

+49.4% since first listed

7 events — show timeline

• 2026-02-16 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-12 Price Changed $89,500 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-26 Listed $99,500 NORTHSTARMLS as Distributed by MLS Grid
• 2015-09-29 Sold (Public Records) $55,624 Public Records
• 2011-08-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2011-02-27 Listed $59,900 NORTHSTARMLS as Distributed by MLS Grid
• 2011-02-27 Listed $59,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.2%/yr

Latest (2025): $948 · +3.9% YoY. Source: county tax records.