204 5th St E · Lancaster, MN 56735

$32,500

3 bd · 1.0 ba · 924 sqft · SingleFamily public records · 5 Days on market

Built 1916 9,583 sqft lot

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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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +5.3/10.0
• Appreciation +5.0/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks

A simple 3 bedroom 1 bath house in a quiet part of town located across from the high school. Check out this cute house sitting on nice large in town lot with a one stall garage.

Key facts

• One stall garage
• Large in town lot
• Quiet part of town

Tags

• QUIET PART OF TOWN
• ACROSS FROM HIGH SCHOOL
• LARGE IN TOWN LOT
• ONE STALL GARAGE

Property features AI

Exterior

• Parking: Detached or attached 1-car garage (12x12)
• Utilities: City water connected; City sewer connected; 200+ amp electrical service; Propane fuel
• Home design: Residential property; One and one-half levels; Above-grade finished living area of 928; Below-grade area and basement present
• Construction: Frame construction; Poured concrete foundation; Foundation dimensions approximately 20x14; Foundation area listed as 280
• Exterior features: Vinyl exterior; Chain link and wood fencing (partial)

Interior

• Kitchen: Range; Microwave; Refrigerator; Freezer
• Bedrooms: Three bedrooms (one on main level, two on upper level)
• Bathrooms: One three-quarter bathroom on the main level
• Heating & cooling: Forced air heating; Window air conditioning units
• Interior features: Informal dining room; Sump pump in basement
• Laundry & utility: Washer; Dryer; Gas water heater; Main-level laundry

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $32k.

Deal economics

• At list price, monthly cash flow is $434 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($907 rent vs $32k).

Location & tenants

• Location reads 67/100 on livability (#428 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools B+; Watch: crime C-, health & safety D+, employment D.
• Lancaster Public School District (rural): math 50% / reading 70% proficiency, ranked #147 of 467 in MN (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 3 active listings in the ZIP; 4 units permitted in Kittson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $1k of equity ($225 loan paydown + $975 appreciation (3.0% local appreciation)).
• Kittson County population projected to shrink 8% 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 $9k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: property tax is 3.7% of price; built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate flood risk; severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $32,500

Questions for the listing agent

1. Built in 1916 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
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: 2.79% ✓
• Cap rate: 22.31%
• Cash-on-cash: 57.20%
• DSCR: 3.55
• GRM: 3.0

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: 62.2%
• Equity multiple: 4.47×
• Total profit: $31,591
• Equity at exit: $14,613

10-year hold

• IRR: 61.8%
• Equity multiple: 9.11×
• Total profit: $73,817
• Equity at exit: $22,521

Cash invested: $9,100 (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 56735

• Active inventory: 3
• Price-to-rent: 3.0×

Monthly cashflow live

• Estimated rent: $907 medium
• Mortgage (P&I): −$170
• Tax from tax record: −$99 /mo · $1,188/yr
• Insurance: −$14
• HOA: −$0
• Vacancy / Maint / Mgmt: −$191
• Net cashflow: $434

Break-even live

Break-even rent $358

Max offer price $32,500

Occupancy floor 47%

Sensitivity live

Price	-10% $452	-5% $443	+0% $434	+5% $425	+10% $415
Rent	-10% $362	-5% $398	+0% $434	+5% $470	+10% $505
Rate	-1.0pp $450	-0.5pp $442	base $434	+0.5pp $425	+1.0pp $417

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: $8,125
• Closing costs: $975
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-05-10
   status Pending 177-char remark
2. 2026-05-06
   listed $32,500 Active 177-char remark

ⓘ 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: $1,188 · $99/mo
• Projected year-2 tax: $1,188 · $99/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 5/10 Major FEMA zone X (unshaded) · 66% chance over 30 yrs
• 🔥 Wildfire 9/10 Extreme
• 🌡 Heat 1/10 Low 7 d/yr ≥95°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,887
• − Mortgage interest: −$1,821
• − Property taxes: −$1,188
• − Insurance: −$162
• − Repairs & maintenance: −$871
• − Management: −$871
• − Depreciation: −$945
• Taxable income: $5,029
• Est. tax owed @ 24.0%: −$1,207
• After-tax cash flow: $3,998/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: Lancaster Public School District
• NCES district ID: 2717880
• Math proficiency: 50% ▲ 20.00%
• Reading proficiency: 70% ▲ 10.00%
• Median HH income: $48,531
• Composite: 52.51/100
• National rank: #3393
• State rank: #147 of 467 in MN

Livability — Lancaster

• Score: 67/100
• State rank: #428
• US rank: #10136

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lancaster, MN
• Population (ZIP): 658

Population outlook (Kittson County) Hauer SSP2

• Today (2025): 4,195 people
• By 2030: 4,100 · -2.3%
• By 2040: 3,952 · -5.8%
• By 2050: 3,869 · -7.8%
• By 2075: 3,832 · -8.7%
• By 2100: 3,529 · -15.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (89%)
• Race & ethnicity: White 89% Two or more races 10% Hispanic / Latino 2%
• Common ancestry: Portuguese 22% Romanian 15% Scottish 5%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 2% Other Asian/Pacific 1%

Political lean MEDSL · Kittson

• 2024 margin: Strong R (+25.0) · D 36.5% · R 61.5% · Other 2.0%
• 2008→2024 swing: -43.5pp toward R · 2008: 18.5pp · 2024: -25.0pp
• All cycles: 2024: R+25.0 2020: R+20.5 2016: R+22.3 2012: D+6.1 2008: D+18.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• 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

2 events — show timeline

• 2026-05-10 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-06 Listed $32,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+13.1%/yr

Latest (2025): $1,188 · +171.2% YoY. Source: county tax records.