540 5th Ave S · Isle, MN 56342

$115,000

5 bd · 2.0 ba · 880 sqft · SingleFamily public records · 12 Days on market

Built 1905 9,104 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 +19.8/30.0
• ARV discount +7.5/15.0
• DSCR +6.3/10.0
• 1% rule +4.9/10.0
• Schools +3.9/10.0
• Livability +2.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Step back in time and discover the charm of this spacious 5-bedroom, 2-bath home, rich with character and beautiful original woodwork, hardwood-paneled doors, and timeless architectural details. This classic home offers generous living space and endless potential. Enjoy peaceful mornings and relaxing evenings on the private back deck, surrounded by mature trees and situated on a large city lot. The property offers plenty of outdoor space while maintaining the convenience of in-town living. Within walking distance to shops, restaurants, Father Hennepin State Park and Mille Lacs Lake, this home combines small-town convenience with easy access to one of Minnesota's premier recreational destina

Key facts

• Private back deck
• Large city lot
• Outdoor space

Tags

• PRIVATE BACK DECK
• LARGE CITY LOT
• OUTDOOR SPACE
• WALKING DISTANCE TO SHOPS
• CLOSE TO MILLE LACS LAKE
• CLOSE TO SOO LINE TRAIL

Property features AI

Finance

• Other: Above-grade finished area approximately 2,100; Below-grade area approximately 100; Total building area approximately 2,200; Other structures include garage(s); Lot approximately 0.209 acres (dimensions ~85x108) with paved, public-maintained streets

Exterior

• Parking: 2-car garage (24x30); Asphalt parking; Guest parking available
• Utilities: City water (connected); City sewer (connected); Electric service with circuit breakers (East Central Energy); Fuel: electric and natural gas
• Home design: Residential property; One-and-a-half story; Primary entry on main level
• Construction: Frame construction; Foundation includes block and stone; Roof age over 8 years
• Exterior features: Deck and front porch; Tree coverage: light to medium; No fencing indicated; Garage(s) on property

Interior

• Kitchen: Range; Microwave; Refrigerator; Eat-in kitchen
• Bedrooms: Five bedrooms total; Main-level primary bedroom; Three bedrooms on one level; Bedroom sizes include 15x11 (main), 10x17 (main), 10x16 (upper), 10x13 (upper), 8x13 (upper); Bonus room on main level (8x6)
• Bathrooms: One full bathroom on the main floor; One half bathroom on the upper level
• Heating & cooling: Boiler heating; Window air conditioning units
• Interior features: Water filtration system; Cable ready; Ceiling fans; Kitchen window; Natural woodwork; Paneled doors; Walk-up attic; Grab bars in bathroom
• Laundry & utility: Main-level laundry with electric dryer hookup; Washer and dryer included; Gas water heater

What this means for you Summary

Snapshot

• This is a 5-bed/2.0-bath single-family listed at $115k.

Deal economics

• At list price, monthly cash flow is $136 ($2k/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 (1.0% below list).
• Recommended offer: $114k (1.0% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 56/100 on livability (#847 in MN) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing B; Watch: health & safety C-, schools D, crime F.
• Isle Public School District (rural): math 34% / reading 54% proficiency, ranked #341 of 467 in MN (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 77 active listings in the ZIP; 163 units permitted in Mille Lacs County in 2024 (66 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $795 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Mille Lacs County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $28k; list at $115k implies a 318% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1905 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $113,793 (1.0% below list)

Questions for the listing agent

1. Built in 1905 — 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 D-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 F 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: 0.99% ✗
• Cap rate: 7.71%
• Cash-on-cash: 5.06%
• DSCR: 1.23
• GRM: 8.4

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: -8.4%
• Equity multiple: 0.69×
• Total profit: $-9,987
• Equity at exit: $17,147

10-year hold

• IRR: 1.1%
• Equity multiple: 1.08×
• Total profit: $2,432
• Equity at exit: $9,943

Cash invested: $32,200 (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 56342

• Home prices YoY: -7.9%
• Active inventory: 77
• Price-to-rent: 8.4×

Monthly cashflow live

• Estimated rent: $1,138 medium
• Mortgage (P&I): −$603
• Tax from tax record: −$112 /mo · $1,346/yr
• Insurance: −$48
• HOA: −$0
• Vacancy / Maint / Mgmt: −$239
• Net cashflow: $136

Break-even live

Break-even rent $966

Max offer price $115,000

Occupancy floor 83%

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: $28,750
• Closing costs: $3,450
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2026-06-18
   days on market $115,000 Active 12 DOM
2. 2026-06-17
   days on market $115,000 Active 11 DOM
3. 2026-06-16
   days on market $115,000 Active 10 DOM
4. 2026-06-15
   days on market $115,000 Active 9 DOM
5. 2026-06-13
   days on market $115,000 Active 7 DOM
6. 2026-06-12
   days on market $115,000 Active 6 DOM
7. 2026-06-09
   days on market $115,000 Active 3 DOM
8. 2026-06-08
   days on market $115,000 Active 2 DOM
9. 2026-06-07
   remarks 699-char remark
10. 2026-06-07
    listed $115,000 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: $1,346 · $112/mo
• Projected year-2 tax: $1,346 · $112/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 13 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: $13,655
• − Mortgage interest: −$6,442
• − Property taxes: −$1,346
• − Insurance: −$575
• − Repairs & maintenance: −$1,092
• − Management: −$1,092
• − Depreciation: −$3,345
• Taxable loss: −$238
• Est. tax savings @ 24.0%: +$57
• After-tax cash flow: $1,687/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: Isle Public School District
• NCES district ID: 2715510
• Math proficiency: 34% ▼ -2.00%
• Reading proficiency: 54% ▲ 5.00%
• Median HH income: $41,943
• Composite: 39.26/100
• National rank: #8190
• State rank: #341 of 467 in MN

Livability — Isle

• Score: 56/100
• State rank: #847
• US rank: #22959

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Isle, MN
• Population (ZIP): 2,805

Population outlook (Mille Lacs County) Hauer SSP2

• Today (2025): 24,811 people
• By 2030: 23,960 · -3.4%
• By 2040: 21,835 · -12.0%
• By 2050: 19,376 · -21.9%
• By 2075: 14,838 · -40.2%
• By 2100: 11,957 · -51.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (89%)
• Race & ethnicity: White 89% Native American 5% Two or more races 4% Hispanic / Latino 1%
• Common ancestry: Portuguese 17% Romanian 4% Lithuanian 4%
• Foreign-born: 1%
• Languages at home: 97% English-only · Spanish 1%

Political lean MEDSL · Mille Lacs

• 2024 margin: Solid R (+40.9) · D 28.9% · R 69.7% · Other 1.4%
• 2008→2024 swing: -33.6pp toward R · 2008: -7.2pp · 2024: -40.9pp
• All cycles: 2024: R+40.9 2020: R+37.8 2016: R+35.8 2012: R+8.6 2008: R+7.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -22.34%
• Current HPI: 261.9385
• 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

+318.2% since first listed

2 events — show timeline

• 2026-06-06 Listed $115,000 NORTHSTARMLS as Distributed by MLS Grid
• 2010-04-05 Sold (Public Records) $27,500 Public Records

Property tax history

+4.6%/yr

Latest (2026): $1,346 · -2.9% YoY. Source: county tax records.