1706 1st Ave SE · Rochester, MN 55904

$90,000

2 bd · 1.0 ba · 703 sqft · SingleFamily public records · 48 Days on market

Built 1935 8,537 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
• Livability +4.6/5.0
• Schools +4.1/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Looking for a home that won't make your wallet cry? This cozy two-bedroom, one-bathroom gem is ready to welcome you without the financial headache that usually comes with homeownership. At 703 square feet, this charming house is proof that great things really do come in small packages. It's the kind of home that keeps things simple, functional, and refreshingly easy to maintain. Less square footage means less cleaning, and honestly, who doesn't love that? The layout flows nicely between the living areas and bedrooms, offering a smart use of space that feels open and inviting. Whether you're a first-time buyer ready to ditch the rental life, an investor looking for a solid opportunity, or someone ready to enjoy an efficiently-sized home without sacrificing comfort, this home checks all the right boxes at a price point that actually makes sense. The location is a bonus worth mentioning. Friendship Park is just a short distance away, perfect for morning outings or evening wind-downs. Graham Arena Complex is practically in your backyard, giving you easy access to events and recreation whenever the mood strikes. Homes at this price point move fast, so don't sleep on this one. Schedule your showing today and see the possibilities for yourself!

Key facts

• 8,537 sq ft lot
• 2 garage spots
• Built 1935

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 $429 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $90k).
• Recommended offer: $87k (3.0% below list) — sets the bar for market timing.
• Cap rate 12.0% vs local median 3.5% 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.
• Market conditions: Rents rising (+2.1%/yr); 149 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $622 of loan paydown is wiped out by about $3k 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.
• At projected returns (-3.0% appreciation + 2.1% rent growth), your $25k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• It's been on market 48 days — a 3% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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.

Risks & watch-outs

• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $87,300 (3.0% below list)

Questions for the listing agent

1. It's been on market 48 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1935 — 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. 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: 1.54% ✓
• Cap rate: 12.02%
• Cash-on-cash: 20.45%
• DSCR: 1.91
• GRM: 5.4

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: 11.7%
• Equity multiple: 1.46×
• Total profit: $11,568
• Equity at exit: $13,419

10-year hold

• IRR: 19.9%
• Equity multiple: 2.61×
• Total profit: $40,472
• Equity at exit: $7,782

Cash invested: $25,200 (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: 149
• Price-to-rent: 5.4×

Monthly cashflow live

• Estimated rent: $1,383 high
• Mortgage (P&I): −$472
• Tax from tax record: −$154 /mo · $1,842/yr
• Insurance: −$38
• HOA: −$0
• Vacancy / Maint / Mgmt: −$290
• Net cashflow: $429

Break-even live

Break-even rent $839

Max offer price $90,000

Occupancy floor 64%

Sensitivity live

Price	-10% $480	-5% $455	+0% $429	+5% $404	+10% $378
Rent	-10% $320	-5% $375	+0% $429	+5% $484	+10% $539
Rate	-1.0pp $475	-0.5pp $452	base $429	+0.5pp $406	+1.0pp $382

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: $22,500
• Closing costs: $2,700
• Reserves months: —
• Total cash needed: —

Rent comps 9 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
504 14th St SE #6 Rochester, MN	2.0	1.0	725	$995	$1.37	44d	1	0.47mi
1427 6th Ave SE Unit 4 Rochester, MN	1.0	1.0	650	$825	$1.27	44d	1	0.48mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,148	$2.77	14d	91	1.22mi
1505 Marion Rd SE Rochester, MN	1.0–3.0	1.0–2.0	864	$1,428	$1.65	14d	1	1.26mi
418 6th St SW Unit A418-936 Rochester, MN	1.0	1.0	500	$1,150	$2.30	44d	1	1.34mi
418 6th St SW Unit A418-924 Rochester, MN	1.0	1.0	500	$1,200	$2.40	21d	1	1.34mi
418 6th St SW Unit A418-929 Rochester, MN	1.0	1.0	400	$1,100	$2.75	21d	1	1.34mi
511 3rd Ave SW Rochester, MN	2.0	1.0	647	$1,795	$2.77	14d	26	1.38mi
718 5th St SW Rochester, MN	2.0	1.0	722	$1,400	$1.94	14d	4	1.50mi

Listing history 7 events

1. 2026-06-01
   statusdays on market $90,000 Pending 48 DOM
2. 2026-05-31
   days on market $90,000 Contingent - Other 47 DOM
3. 2026-05-30
   days on market $90,000 Contingent - Other 46 DOM
4. 2026-05-10
   historical Contingent - Other 1261-char remark

   Show marketing remark (1261 chars)

   Looking for a home that won't make your wallet cry? This cozy two-bedroom, one-bathroom gem is ready to welcome you without the financial headache that usually comes with homeownership. At 703 square feet, this charming house is proof that great things really do come in small packages. It's the kind of home that keeps things simple, functional, and refreshingly easy to maintain. Less square footage means less cleaning, and honestly, who doesn't love that? The layout flows nicely between the living areas and bedrooms, offering a smart use of space that feels open and inviting. Whether you're a first-time buyer ready to ditch the rental life, an investor looking for a solid opportunity, or someone ready to enjoy an efficiently-sized home without sacrificing comfort, this home checks all the right boxes at a price point that actually makes sense. The location is a bonus worth mentioning. Friendship Park is just a short distance away, perfect for morning outings or evening wind-downs. Graham Arena Complex is practically in your backyard, giving you easy access to events and recreation whenever the mood strikes. Homes at this price point move fast, so don't sleep on this one. Schedule your showing today and see the possibilities for yourself!

5. 2026-05-04
   status Active 1261-char remark

   Show marketing remark (1261 chars)

   Looking for a home that won't make your wallet cry? This cozy two-bedroom, one-bathroom gem is ready to welcome you without the financial headache that usually comes with homeownership. At 703 square feet, this charming house is proof that great things really do come in small packages. It's the kind of home that keeps things simple, functional, and refreshingly easy to maintain. Less square footage means less cleaning, and honestly, who doesn't love that? The layout flows nicely between the living areas and bedrooms, offering a smart use of space that feels open and inviting. Whether you're a first-time buyer ready to ditch the rental life, an investor looking for a solid opportunity, or someone ready to enjoy an efficiently-sized home without sacrificing comfort, this home checks all the right boxes at a price point that actually makes sense. The location is a bonus worth mentioning. Friendship Park is just a short distance away, perfect for morning outings or evening wind-downs. Graham Arena Complex is practically in your backyard, giving you easy access to events and recreation whenever the mood strikes. Homes at this price point move fast, so don't sleep on this one. Schedule your showing today and see the possibilities for yourself!

6. 2026-04-24
   historical Contingent - Other 1261-char remark

   Show marketing remark (1261 chars)

   Looking for a home that won't make your wallet cry? This cozy two-bedroom, one-bathroom gem is ready to welcome you without the financial headache that usually comes with homeownership. At 703 square feet, this charming house is proof that great things really do come in small packages. It's the kind of home that keeps things simple, functional, and refreshingly easy to maintain. Less square footage means less cleaning, and honestly, who doesn't love that? The layout flows nicely between the living areas and bedrooms, offering a smart use of space that feels open and inviting. Whether you're a first-time buyer ready to ditch the rental life, an investor looking for a solid opportunity, or someone ready to enjoy an efficiently-sized home without sacrificing comfort, this home checks all the right boxes at a price point that actually makes sense. The location is a bonus worth mentioning. Friendship Park is just a short distance away, perfect for morning outings or evening wind-downs. Graham Arena Complex is practically in your backyard, giving you easy access to events and recreation whenever the mood strikes. Homes at this price point move fast, so don't sleep on this one. Schedule your showing today and see the possibilities for yourself!

7. 2026-04-14
   listed $90,000 Active 1261-char remark

   Show marketing remark (1261 chars)

   Looking for a home that won't make your wallet cry? This cozy two-bedroom, one-bathroom gem is ready to welcome you without the financial headache that usually comes with homeownership. At 703 square feet, this charming house is proof that great things really do come in small packages. It's the kind of home that keeps things simple, functional, and refreshingly easy to maintain. Less square footage means less cleaning, and honestly, who doesn't love that? The layout flows nicely between the living areas and bedrooms, offering a smart use of space that feels open and inviting. Whether you're a first-time buyer ready to ditch the rental life, an investor looking for a solid opportunity, or someone ready to enjoy an efficiently-sized home without sacrificing comfort, this home checks all the right boxes at a price point that actually makes sense. The location is a bonus worth mentioning. Friendship Park is just a short distance away, perfect for morning outings or evening wind-downs. Graham Arena Complex is practically in your backyard, giving you easy access to events and recreation whenever the mood strikes. Homes at this price point move fast, so don't sleep on this one. Schedule your showing today and see the possibilities for yourself!

ⓘ 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: $1,842 · $154/mo
• Projected year-2 tax: $1,842 · $154/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 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°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: $16,592
• − Mortgage interest: −$5,041
• − Property taxes: −$1,842
• − Insurance: −$450
• − Repairs & maintenance: −$1,327
• − Management: −$1,327
• − Depreciation: −$2,618
• Taxable income: $3,986
• Est. tax owed @ 24.0%: −$957
• After-tax cash flow: $4,196/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

4 events — show timeline

• 2026-05-10 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-04 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-24 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Listed $90,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+9.1%/yr

Latest (2025): $1,842 · +4.2% YoY. Source: county tax records.