1054 County Road 6 NE

Cambridge, MN 55080

$539,900D

3 bd · 2.0 ba · 1,392 sqft · Built 1973 · SingleFamily · Active · 97 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,114/mo
• Mortgage (P&I): −$2,831
• Tax + insurance: −$420
• HOA: −$0
• Vac / Maint / Mgmt: −$864
• Net cashflow: $-1/mo
• Annual: $-13/yr
• Cap rate: 6.29%
• Cash-on-cash: -0.01%
• DSCR: 1.00
• 1% rule: 0.76%
• Cash to close: $151,172

Investor read

• This is a 3-bed/2.0-bath single-family listed at $540k.
• At list price, monthly cash flow is $-1 ($-13/yr) — negative.
• To cash-flow at today's rent, offer at most $540k (0.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $411k (23.8% below list).
• It's been on market 97 days — a 9% lower offer ($491k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $411k (23.8% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#180 in MN, #3,872 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, crime A; Watch: amenities F, commute F.
• Cambridge-Isanti Public School District (town): math 47% / reading 55% proficiency, ranked #96 of 301 in MN (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Cambridge Intermediate School (math 62% / reading 55%, grade B-, #251 of 857 statewide, top 30%, 503 students, 40% FRL); Cambridge Middle School (math 43% / reading 62%, grade C+, #59 of 258 statewide, top 24%, 605 students, 36% FRL); Cambridge-Isanti High School (math 37% / reading 60%, grade D, #156 of 471 statewide, top 33%, 1,605 students, 36% FRL).
• Market conditions: 31 active listings in the ZIP; 191 units permitted in Isanti County in 2024 (28 in 5+ unit buildings).
• Isanti County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 11 sale attempts since 28y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $320k; list at $540k implies a 69% gain — meaningful room to come down on a strong offer.
• Cap rate 6.3% vs local median 2.9% in Cambridge — 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.

Questions for listing agent

• 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?
• It's been on market 97 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.
• 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.