225 Main St W · Melrose, MN 56352

$169,000

3 bd · 1.0 ba · 1,170 sqft · SingleFamily public records · 6 Days on market

Built 1908 10,454 sqft lot

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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 +22.1/30.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• DSCR +7.1/10.0
• 1% rule +5.2/10.0
• Schools +4.1/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

3 BEDROOM, 1 BATH HOME ON A BIG CITY LOT. NICE WOOD FLOORS AND WOODWORK, WILL NEED A LITTLE WORK.

Key facts

• Large family room
• Spacious fenced yard
• Heated garage

Tags

• OPEN DINING LIVING ROOMS
• LARGE FAMILY ROOM
• LAUNDRY ROOM
• SPACIOUS FENCED YARD
• HEATED GARAGE
• NEW ROOF

Property features AI

Exterior

• Parking: Attached garage, 2-car (garage dimensions about 26x26)
• Utilities: City water connected and well; City sewer connected; Natural gas
• Home design: Residential property; Two levels; Entry includes foyer
• Construction: Block construction; Asphalt roof (8 years old or newer); Block foundation
• Exterior features: Vinyl siding; Partial wood fencing; Corner lot; City street frontage, public maintained road; Lot dimensions approximately 75x140

Interior

• Kitchen: Range; Dishwasher; Refrigerator; Kitchen window
• Bedrooms: 3 bedrooms (two on the upper level, one on the lower level)
• Flooring: Hardwood floors
• Bathrooms: Two 3/4 bathrooms (one in basement, one on upper level)
• Heating & cooling: Forced air heating; Ductless mini-split cooling
• Interior features: Living/Dining room; Partially finished full basement; Hardwood floors; Kitchen window
• Laundry & utility: Laundry room on lower level; Washer; Dryer

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $169k.

Deal economics

• At list price, monthly cash flow is $271 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $169k).

Location & tenants

• Location reads 76/100 on livability (#164 in MN, #3,568 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F.
• Melrose Public School District (rural): math 45% / reading 50% proficiency, ranked #142 of 301 in MN (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 31 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 661 units permitted in Stearns County in 2024 (291 in 5+ unit buildings).

Forward outlook

• In year one you build about $18k of equity ($1k loan paydown + $17k appreciation (10.0% local appreciation)).
• Stearns County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $47k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$46k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 23y 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 $110k; list at $169k implies a 54% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $169,000

Questions for the listing agent

1. Built in 1908 — 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: 1.02% ✓
• Cap rate: 8.22%
• Cash-on-cash: 6.87%
• DSCR: 1.31
• GRM: 8.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 29.3%
• Equity multiple: 3.31×
• Total profit: $109,275
• Equity at exit: $152,249

10-year hold

• IRR: 25.4%
• Equity multiple: 7.51×
• Total profit: $308,194
• Equity at exit: $328,330

Cash invested: $47,320 (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 56352

• Home prices YoY: 6.1%
• Active inventory: 31
• Price-to-rent: 8.1×

Monthly cashflow live

• Estimated rent: $1,730 medium
• Mortgage (P&I): −$886
• Tax from tax record: −$139 /mo · $1,670/yr
• Insurance: −$70
• HOA: −$0
• Vacancy / Maint / Mgmt: −$363
• Net cashflow: $271

Break-even live

Break-even rent $1,387

Max offer price $169,000

Occupancy floor 79%

Sensitivity live

Price	-10% $367	-5% $319	+0% $271	+5% $223	+10% $175
Rent	-10% $134	-5% $203	+0% $271	+5% $339	+10% $408
Rate	-1.0pp $356	-0.5pp $314	base $271	+0.5pp $227	+1.0pp $183

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: $42,250
• Closing costs: $5,070
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1250 W Railroad Ave Melrose, MN	1.0–3.0	1.0–2.0	950	$1,730	$1.82	44d	17	0.94mi

Listing history 6 events

1. 2026-06-17
   status $169,000 Pending 6 DOM
2. 2026-06-16
   days on market $169,000 Active 6 DOM
3. 2026-06-15
   days on market $169,000 Active 5 DOM
4. 2026-06-13
   days on market $169,000 Active 3 DOM
5. 2026-06-12
   remarks 363-char remark
6. 2026-06-12
   listed $169,000 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: $1,670 · $139/mo
• Projected year-2 tax: $1,781 · $148/mo
• Expected delta: +$111/yr (+$9/mo · 6.7%)

ⓘ 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 · 13 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: $20,760
• − Mortgage interest: −$9,467
• − Property taxes: −$1,670
• − Insurance: −$845
• − Repairs & maintenance: −$1,661
• − Management: −$1,661
• − Depreciation: −$4,916
• Taxable income: $540
• Est. tax owed @ 24.0%: −$130
• After-tax cash flow: $3,121/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: Melrose Public School District
• NCES district ID: 2720550
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 50% ▼ -5.00%
• Median HH income: $55,833
• Composite: 41.26/100
• National rank: #3525
• State rank: #142 of 301 in MN

Livability — Melrose

• Score: 76/100
• State rank: #164
• US rank: #3568

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Melrose, MN
• Population (ZIP): 5,955

Population outlook (Stearns County) Hauer SSP2

• Today (2025): 162,629 people
• By 2030: 166,495 · +2.4%
• By 2040: 172,661 · +6.2%
• By 2050: 177,480 · +9.1%
• By 2075: 192,907 · +18.6%
• By 2100: 206,274 · +26.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 12% Two or more races 2%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Portuguese 4% Romanian 4% Lithuanian 2%
• Foreign-born: 5% · Canada
• Languages at home: 87% English-only · Spanish 11% German/W. Germanic 1%

Political lean MEDSL · Stearns

• 2024 margin: Strong R (+26.8) · D 35.7% · R 62.5% · Other 1.9%
• 2008→2024 swing: -19.8pp toward R · 2008: -7.0pp · 2024: -26.8pp
• All cycles: 2024: R+26.8 2020: R+22.5 2016: R+27.9 2012: R+12.1 2008: R+7.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 23.62%
• Current HPI: 410.59
• 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

+428.1% since first listed

6 events — show timeline

• 2026-06-10 Listed $169,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-09-22 Sold (Public Records) $110,000 Public Records
• 2003-04-28 Sold (MLS) $59,500 NORTHSTARMLS as Distributed by MLS Grid
• 2003-03-07 Listed $61,500 NORTHSTARMLS as Distributed by MLS Grid
• 1999-09-30 Sold (Public Records) $73,000 Public Records
• 1994-04-04 Sold (Public Records) $32,000 Public Records

Property tax history

+1.0%/yr

Latest (2025): $1,670 · -1.9% YoY. Source: county tax records.