421 Buffalo Ave S · Montrose, MN 55363

$174,900

2 bd · 1.0 ba · 796 sqft · SingleFamily public records · 20 Days on market

Built 1900 5,837 sqft lot

---

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 +23.2/30.0
• DSCR +7.5/10.0
• ARV discount +7.5/15.0
• 1% rule +5.4/10.0
• Schools +4.8/10.0
• Appreciation +4.0/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Cheaper than rent! Nicely updated 2 bedroom, 1 bath rambler. All new kitchen cabinets & countertops, LVP flooring, carpet, appliances including washer & dryer and 92% high efficiency furnace. Fresh paint, remodeled bathroom. steel siding, 2 car detached garage & mature lot. Perfect for a first time home buyer or investor for rental. Quick close possible. Affordable!

Key facts

• Easy access to metro
• 5,837 sq ft lot
• 2 garage spots

Tags

• UPDATED KITCHEN COUNTERTOPS
• UPDATED KITCHEN CABINETS
• LOW MAINTENANCE STEEL SIDING
• EASY ACCESS TO METRO

Property features AI

Exterior

• Parking: Detached or attached 2-car garage (24 x 26)
• Utilities: City water (connected); City sewer (connected); Natural gas
• Home design: Residential property; One story
• Construction: Asphalt pitched roof (over 8 years old); Foundation area 796; Full unfinished basement
• Exterior features: Wood and metal exterior; Light tree coverage

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: Two bedrooms on the main level (13 x 8; 11 x 9)
• Bathrooms: One full bathroom on the main level
• Heating & cooling: Forced air heating; Window air conditioning unit(s)
• Interior features: Renovated; Water softener (owned)
• Laundry & utility: Washer and dryer; Laundry located in basement; Electric water heater

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $175k.

Deal economics

• At list price, monthly cash flow is $317 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $175k).
• Recommended offer: $172k (1.5% below list) — sets the bar for market timing.
• Cap rate 8.5% vs local median 3.9% in Montrose — 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 65/100 on livability (#522 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living A-; Watch: amenities F, commute F, health & safety F.
• Buffalo-Hanover-Montrose Public Schools (town): math 52% / reading 56% proficiency, ranked #63 of 301 in MN (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Market conditions: 48 active listings in the ZIP; 1,260 units permitted in Wright County in 2024 (180 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-2.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Wright County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 20 days — a 2% lower offer ($172k) is reasonable based on typical stale-listing flexibility.
• 10 sale attempts since 29y 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.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $172,276 (1.5% below list)

Questions for the listing agent

1. Built in 1900 — 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 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?
4. 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.
5. 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.
6. 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: 1.04% ✓
• Cap rate: 8.47%
• Cash-on-cash: 7.76%
• DSCR: 1.35
• GRM: 8.0

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-2.05% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -0.6%
• Equity multiple: 0.98×
• Total profit: $-1,118
• Equity at exit: $33,611

10-year hold

• IRR: 7.5%
• Equity multiple: 1.64×
• Total profit: $31,184
• Equity at exit: $28,385

Cash invested: $48,972 (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 55363

• Home prices YoY: -0.7%
• Active inventory: 48
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $1,816 medium
• Mortgage (P&I): −$917
• Tax from tax record: −$128 /mo · $1,534/yr
• Insurance: −$73
• HOA: −$0
• Vacancy / Maint / Mgmt: −$381
• Net cashflow: $317

Break-even live

Break-even rent $1,415

Max offer price $174,900

Occupancy floor 78%

Sensitivity live

Price	-10% $416	-5% $366	+0% $317	+5% $267	+10% $218
Rent	-10% $173	-5% $245	+0% $317	+5% $388	+10% $460
Rate	-1.0pp $405	-0.5pp $361	base $317	+0.5pp $271	+1.0pp $225

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: $43,725
• Closing costs: $5,247
• Reserves months: —
• Total cash needed: —

Listing history 13 events

1. 2026-06-18
   days on market $174,900 Active 20 DOM
2. 2026-06-17
   pricedays on market $174,900 Active 19 DOM
3. 2026-06-16
   days on market $179,900 Active 18 DOM
4. 2026-06-15
   days on market $179,900 Active 17 DOM
5. 2026-06-13
   days on market $179,900 Active 15 DOM
6. 2026-06-13
   days on market $179,900 Active 14 DOM
7. 2026-06-09
   days on market $179,900 Active 11 DOM
8. 2026-06-08
   statusdays on market $179,900 Active 10 DOM
9. 2026-06-07
   days on market $179,900 Contingent - Inspection 9 DOM
10. 2026-06-04
    days on market $179,900 Contingent - Inspection 6 DOM
11. 2026-06-03
    statusdays on market $179,900 Contingent - Inspection 5 DOM
12. 2026-06-01
    days on market $179,900 Active 3 DOM
13. 2026-05-31
    days on market $179,900 Active 2 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: $1,534 · $128/mo
• Projected year-2 tax: $1,746 · $146/mo
• Expected delta: +$212/yr (+$18/mo · 13.8%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,791
• − Mortgage interest: −$9,797
• − Property taxes: −$1,534
• − Insurance: −$874
• − Repairs & maintenance: −$1,743
• − Management: −$1,743
• − Depreciation: −$5,088
• Taxable income: $1,011
• Est. tax owed @ 24.0%: −$243
• After-tax cash flow: $3,558/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: Buffalo-Hanover-Montrose Public Schools
• NCES district ID: 2707200
• Math proficiency: 52% ▼ -13.00%
• Reading proficiency: 56% ▼ -9.00%
• Median HH income: $72,549
• Composite: 48.25/100
• National rank: #2159
• State rank: #63 of 301 in MN

Livability — Montrose

• Score: 65/100
• State rank: #522
• US rank: #12593

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montrose, MN
• Population (ZIP): 5,664

Population outlook (Wright County) Hauer SSP2

• Today (2025): 142,526 people
• By 2030: 146,915 · +3.1%
• By 2040: 153,625 · +7.8%
• By 2050: 155,416 · +9.0%
• By 2075: 150,352 · +5.5%
• By 2100: 130,631 · -8.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (81%)
• Race & ethnicity: White 81% Two or more races 16% Hispanic / Latino 11% Native American 2%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Portuguese 11% Romanian 6% Lithuanian 3%
• Foreign-born: 4% · Canada
• Languages at home: 89% English-only · Spanish 10% Russian/Polish/Slavic 1% German/W. Germanic 1%

Political lean MEDSL · Wright

• 2024 margin: Strong R (+29.4) · D 34.4% · R 63.8% · Other 1.8%
• 2008→2024 swing: -11.9pp toward R · 2008: -17.4pp · 2024: -29.4pp
• All cycles: 2024: R+29.4 2020: R+28.6 2016: R+33.2 2012: R+21.4 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -2.05%
• Current HPI: 280.9111
• 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

+170.5% since first listed

28 events — show timeline

• 2026-05-29 Listed $179,900 NORTHSTARMLS as Distributed by MLS Grid
• 2023-01-03 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2022-12-29 Sold (MLS) $162,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-11-28 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2022-11-14 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2022-11-02 Price Changed $162,800 NORTHSTARMLS as Distributed by MLS Grid
• 2022-10-06 Listed $174,900 NORTHSTARMLS as Distributed by MLS Grid
• 2022-09-27 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2022-08-22 Price Changed $184,900 NORTHSTARMLS as Distributed by MLS Grid
• 2022-07-26 Listed $195,000 NORTHSTARMLS as Distributed by MLS Grid
• 2005-01-31 Sold (Public Records) $115,000 Public Records
• 2004-09-17 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-07-06 Listed $124,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-07-05 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-05-18 Listed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2003-11-03 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2003-09-23 Listed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2003-08-11 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2003-07-15 Listed $132,900 NORTHSTARMLS as Distributed by MLS Grid
• 2003-06-27 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2003-06-05 Listed $132,900 NORTHSTARMLS as Distributed by MLS Grid
• 2002-07-18 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2002-06-18 Listed $117,900 NORTHSTARMLS as Distributed by MLS Grid
• 2000-06-06 Sold (Public Records) $73,500 Public Records
• 1997-09-19 Sold (Public Records) $53,000 Public Records
• 1997-09-19 Sold (MLS) $53,000 NORTHSTARMLS as Distributed by MLS Grid
• 1997-09-09 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1997-09-02 Listed $66,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+0.6%/yr

Latest (2025): $1,534 · -2.0% YoY. Source: county tax records.