2606 Pearl Ct SE · Rochester, MN 55904

$289,999

4 bd · 2.0 ba · 1,671 sqft · SingleFamily public records · 4 Days on market

Built 1958 0.29 ac lot

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Why this score? — see what drove the D 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 +13.2/30.0
• ARV discount +7.5/15.0
• Livability +4.6/5.0
• Schools +4.1/10.0
• DSCR +4.0/10.0
• 1% rule +3.2/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Key facts

• 0.29 acre lot
• 4 garage spots
• Built 1958

Property features AI

Exterior

• Parking: Attached garage with 4 spaces
• Utilities: City water; City sewer; Natural gas; Electric with circuit breakers
• Home design: Residential property; One-level design; Entry level: Main (living area split between above and below grade)
• Construction: Block foundation; Roof age 8 years or less
• Exterior features: Deck; Irregular lot

Interior

• Kitchen: Range; Microwave; Dishwasher; Refrigerator
• Bedrooms: 4 bedrooms
• Bathrooms: 1 full bathroom located on the main floor; 1 half bathroom located in the basement
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Dishwasher; Dryer; Gas water heater; Microwave; Range; Refrigerator; Washer; Owned water softener; Fireplace (1)
• Laundry & utility: Washer and Dryer; Gas water heater; Owned water softener

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $290k.

Deal economics

• At list price, monthly cash flow is $-4 ($-44/yr) — negative.
• To cash-flow at today's rent, offer at most $289k (0.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $239k (17.5% below list).
• Recommended offer: $239k (17.5% below list) — sets the bar for 1% rule.
• Cap rate 6.3% vs local median 3.6% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pinewood Elementary (math 47% / reading 57%, grade C-, #368 of 857 statewide, top 47%, 308 students, 29% FRL); Willow Creek Middle (math 19% / reading 36%, grade F, #213 of 258 statewide, top 82%, 890 students, 45% FRL); Mayo Senior High (math 42% / reading 65%, grade C-, #104 of 471 statewide, top 22%, 1,862 students, 31% FRL) — zoned schools at 35% FRL track the district average.
• Market conditions: Rents rising (+2.1%/yr); 151 active listings in the ZIP; solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• This rent runs 37% of the median local income ($77k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $127k; list at $290k implies a 128% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $239,150 (17.5% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. Built in 1958 — 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. Schools are A-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. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
6. 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.
7. 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.
8. 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: 0.82% ✗
• Cap rate: 6.28%
• Cash-on-cash: -0.05%
• DSCR: 1.00
• GRM: 10.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.1% rent growth · sell at horizon

5-year hold

• IRR: -17.4%
• Equity multiple: 0.39×
• Total profit: $-49,405
• Equity at exit: $43,240

10-year hold

• IRR: -11.1%
• Equity multiple: 0.36×
• Total profit: $-52,102
• Equity at exit: $25,074

Cash invested: $81,200 (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 55904

• Rents YoY: 2.1%
• Active inventory: 151
• Price-to-rent: 10.1×

Monthly cashflow live

• Estimated rent: $2,392 medium
• Mortgage (P&I): −$1,521
• Tax from tax record: −$251 /mo · $3,016/yr
• Insurance: −$121
• HOA: −$0
• Vacancy / Maint / Mgmt: −$502
• Net cashflow: $-4

Break-even live

Break-even rent $2,396

Max offer price $289,351

Occupancy floor 95%

Sensitivity live

Price	-10% $160	-5% $78	+0% $-4	+5% $-86	+10% $-168
Rent	-10% $-193	-5% $-98	+0% $-4	+5% $91	+10% $185
Rate	-1.0pp $142	-0.5pp $70	base $-4	+0.5pp $-79	+1.0pp $-155

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: $72,500
• Closing costs: $8,700
• Reserves months: —
• Total cash needed: —

Listing history 3 events

1. 2026-06-21
   days on market $289,999 Coming Soon 4 DOM
2. 2026-06-19
   days on market $289,999 Coming Soon 2 DOM
3. 2026-06-17
   listed $289,999 Coming Soon 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: $3,016 · $251/mo
• Projected year-2 tax: $3,132 · $261/mo
• Expected delta: +$116/yr (+$10/mo · 3.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 22% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 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: $28,698
• − Mortgage interest: −$16,244
• − Property taxes: −$3,016
• − Insurance: −$1,450
• − Repairs & maintenance: −$2,296
• − Management: −$2,296
• − Depreciation: −$8,436
• Taxable loss: −$5,040
• Est. tax savings @ 24.0%: +$1,210
• After-tax cash flow: $1,166/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 29,639
• Household income: $77,016
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 864.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 10% Hispanic / Latino 8% Two or more races 5% Asian 3%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Portuguese 11% Lithuanian 2% Italian 2%
• Foreign-born: 11% · Canada, China, Vietnam
• Languages at home: 84% English-only · Spanish 5% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -161.04%
• Current HPI: 267.168
• Rent YoY: ▲ 2.10%
• Metro: Rochester, 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

+448.2% since first listed

4 events — show timeline

• 2026-06-17 Coming Soon $289,999 NORTHSTARMLS as Distributed by MLS Grid
• 2003-03-31 Sold (Public Records) $127,450 Public Records
• 1991-12-01 Sold (Public Records) $79,900 Public Records
• 1981-08-01 Sold (Public Records) $52,900 Public Records

Property tax history

+6.4%/yr

Latest (2025): $3,016 · +13.5% YoY. Source: county tax records.