3640 8 1/2 St NW · Rochester, MN 55901

$290,000

4 bd · 2.0 ba · 1,797 sqft · SingleFamily public records · 15 Days on market

Built 1989 7,492 sqft 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 +18.1/30.0
• ARV discount +7.5/15.0
• DSCR +5.7/10.0
• Livability +4.6/5.0
• 1% rule +4.5/10.0
• 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

Here is a great home that sits on a corner lot with a fenced in yard and large two car garage. The home is move in ready and features laminate wood flooring throughout the main floor, spacious rooms and a corner fireplace in the lower level.

Key facts

• 7,492 sq ft lot
• 2 garage spots
• Built 1989

Tags

• LARGE FENCED BACKYARD
• SEPARATE FENCED GARDEN AREA
• WIRED SECURITY SYSTEM
• RADON MITIGATION SYSTEM

Property features AI

Exterior

• Parking: Attached or detached 2-car garage (24 x 24)
• Utilities: City water connected; City sewer connected; Electric service with circuit breakers (100 amp); Fuel: Electric and Natural Gas
• Home design: Residential split-entry (bi-level) home; Entry level: Main and lower levels
• Construction: Block foundation; Foundation area approximately 912; Foundation dimensions 38 x 24; Built with vinyl siding
• Exterior features: Vinyl exterior; Chain link full fencing; Corner lot; Irregular lot dimensions

Interior

• Kitchen: Dishwasher; Microwave; Range; Refrigerator; Kitchen window
• Bedrooms: 4 bedrooms
• Bathrooms: Main floor full bath; Basement 3/4 bath
• Heating & cooling: Forced air heat; Central air conditioning
• Interior features: Finished basement with egress window(s); Informal and combined kitchen/dining and living/dining spaces; Gas fireplace in family room (1 fireplace)
• Laundry & utility: Laundry on lower level; Washer; Dryer; Gas water heater

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 $253 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $276k (4.8% below list).
• Recommended offer: $276k (4.8% below list) — sets the bar for 1% rule.
• Cap rate 7.3% 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.
• Zoned schools: John Marshall Senior High (math 37% / reading 58%, grade D, #162 of 471 statewide, top 35%, 1,573 students, 43% FRL).
• Market conditions: Rents rising (+2.2%/yr); 509 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• This rent runs 35% of the median local income ($95k/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

• It's been on market 15 days — a 2% lower offer ($286k) is reasonable based on typical stale-listing flexibility.
• 9 sale attempts since 22y 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.

Recommended offer $276,135 (4.8% below list)

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. 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?
3. 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?
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: 0.95% ✗
• Cap rate: 7.34%
• Cash-on-cash: 3.74%
• DSCR: 1.17
• GRM: 8.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.18% rent growth · sell at horizon

5-year hold

• IRR: -11.3%
• Equity multiple: 0.59×
• Total profit: $-33,132
• Equity at exit: $43,240

10-year hold

• IRR: -3.3%
• Equity multiple: 0.79×
• Total profit: $-17,229
• 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 55901

• Home prices YoY: -33.2%
• Rents YoY: 2.2%
• Active inventory: 509
• Price-to-rent: 8.8×

Monthly cashflow live

• Estimated rent: $2,761 high
• Mortgage (P&I): −$1,521
• Tax from tax record: −$287 /mo · $3,440/yr
• Insurance: −$121
• HOA: −$0
• Vacancy / Maint / Mgmt: −$580
• Net cashflow: $253

Break-even live

Break-even rent $2,441

Max offer price $290,000

Occupancy floor 86%

Sensitivity live

Price	-10% $417	-5% $335	+0% $253	+5% $171	+10% $89
Rent	-10% $35	-5% $144	+0% $253	+5% $362	+10% $471
Rate	-1.0pp $399	-0.5pp $327	base $253	+0.5pp $178	+1.0pp $102

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: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3680 9th St NW Rochester, MN	2.0–3.0	2.5	1600	$2,695	$1.68	14d	17	0.05mi
4275 Heritage Pl NW Rochester, MN	2.0–5.0	2.0–3.5	2067	$3,946	$1.91	14d	9	0.85mi
2127 Preserve Dr NW Rochester, MN	3.0	2.5	2136	$3,675	$1.72	44d	1	0.89mi
2257 Jordyn Rd NW Rochester, MN	3.0	2.0	1715	$3,440	$2.01	44d	1	1.00mi
2328 Hampton Rhodes Ct NW Rochester, MN	4.0	2.0	2000	$2,150	$1.07	14d	1	1.30mi

Listing history 39 events

1. 2026-06-13
   statusdays on market $290,000 Pending 15 DOM
2. 2026-06-10
   days on market $290,000 Active 13 DOM
3. 2026-06-09
   days on market $290,000 Active 12 DOM
4. 2026-06-08
   pricedays on market $290,000 Active 11 DOM
5. 2026-06-07
   days on market $300,000 Active 10 DOM
6. 2026-06-05
   days on market $300,000 Active 7 DOM
7. 2026-06-03
   days on market $300,000 Active 6 DOM
8. 2026-06-02
   days on market $300,000 Active 5 DOM
9. 2026-06-01
   days on market $300,000 Active 4 DOM
10. 2026-05-31
    days on market $300,000 Active 3 DOM
11. 2026-05-30
    days on market $300,000 Active 2 DOM
12. 2026-05-28
    listed $300,000 Active
13. 2024-01-25
    soldstatus $267,500
14. 2023-01-17
    soldstatus $267,500
15. 2022-08-08
    soldstatus $267,500
16. 2022-07-28
    soldstatus $267,500 Sold 241-char remark

    Show marketing remark (241 chars)

    Here is a great home that sits on a corner lot with a fenced in yard and large two car garage. The home is move in ready and features laminate wood flooring throughout the main floor, spacious rooms and a corner fireplace in the lower level.

17. 2022-06-29
    status Pending 241-char remark

    Show marketing remark (241 chars)

    Here is a great home that sits on a corner lot with a fenced in yard and large two car garage. The home is move in ready and features laminate wood flooring throughout the main floor, spacious rooms and a corner fireplace in the lower level.

18. 2022-06-24
    historical Contingent - Inspection 241-char remark

    Show marketing remark (241 chars)

    Here is a great home that sits on a corner lot with a fenced in yard and large two car garage. The home is move in ready and features laminate wood flooring throughout the main floor, spacious rooms and a corner fireplace in the lower level.

19. 2022-06-17
    listed $264,900 Active 241-char remark

    Show marketing remark (241 chars)

    Here is a great home that sits on a corner lot with a fenced in yard and large two car garage. The home is move in ready and features laminate wood flooring throughout the main floor, spacious rooms and a corner fireplace in the lower level.

20. 2018-12-11
    historical 407-char remark

    Show marketing remark (407 chars)

    This home has been meticulously maintained, truly loved. The large lot & oversized garage add to the attraction of the beautiful interior of this home. Move-in ready (see photos). The basement rooms are very spacious (F/P). The bedroom could be used as the master or bed combo exercise/office room. The open upstairs floor plan includes laminate kitchen (snack bar) & dining flooring. New roof 2009.

21. 2018-12-10
    historical
22. 2018-12-10
    historical
23. 2015-07-15
    soldstatus $158,500
24. 2015-07-15
    soldstatus $158,500
25. 2015-05-23
    listed $158,000
26. 2013-11-12
    soldstatus $148,000 407-char remark

    Show marketing remark (407 chars)

    This home has been meticulously maintained, truly loved. The large lot & oversized garage add to the attraction of the beautiful interior of this home. Move-in ready (see photos). The basement rooms are very spacious (F/P). The bedroom could be used as the master or bed combo exercise/office room. The open upstairs floor plan includes laminate kitchen (snack bar) & dining flooring. New roof 2009.

27. 2013-11-12
    soldstatus $148,000

    Show marketing remark (407 chars)

    This home has been meticulously maintained, truly loved. The large lot & oversized garage add to the attraction of the beautiful interior of this home. Move-in ready (see photos). The basement rooms are very spacious (F/P). The bedroom could be used as the master or bed combo exercise/office room. The open upstairs floor plan includes laminate kitchen (snack bar) & dining flooring. New roof 2009.

28. 2013-02-04
    listed $147,900 407-char remark

    Show marketing remark (407 chars)

    This home has been meticulously maintained, truly loved. The large lot & oversized garage add to the attraction of the beautiful interior of this home. Move-in ready (see photos). The basement rooms are very spacious (F/P). The bedroom could be used as the master or bed combo exercise/office room. The open upstairs floor plan includes laminate kitchen (snack bar) & dining flooring. New roof 2009.

29. 2013-02-04
    listed $147,900

    Show marketing remark (407 chars)

    This home has been meticulously maintained, truly loved. The large lot & oversized garage add to the attraction of the beautiful interior of this home. Move-in ready (see photos). The basement rooms are very spacious (F/P). The bedroom could be used as the master or bed combo exercise/office room. The open upstairs floor plan includes laminate kitchen (snack bar) & dining flooring. New roof 2009.

30. 2012-06-08
    listed $149,900
31. 2012-06-08
    listed $149,900
32. 2007-06-19
    soldstatus $159,000
33. 2007-06-07
    soldstatus $159,900
34. 2007-03-16
    historical
35. 2007-02-19
    listed $154,900
36. 2004-04-23
    soldstatus $138,900
37. 2004-04-16
    soldstatus $134,900
38. 2004-02-16
    listed $134,900
39. 1989-09-01
    soldstatus $66,500

ⓘ 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: $3,440 · $287/mo
• Projected year-2 tax: $3,440 · $287/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: $33,136
• − Mortgage interest: −$16,245
• − Property taxes: −$3,440
• − Insurance: −$1,450
• − Repairs & maintenance: −$2,651
• − Management: −$2,651
• − Depreciation: −$8,436
• Taxable loss: −$1,736
• Est. tax savings @ 24.0%: +$417
• After-tax cash flow: $3,455/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): 58,495
• Household income: $94,607
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 1651.0

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 (71%)
• Race & ethnicity: White 71% Black 12% Asian 8% Two or more races 6% Hispanic / Latino 5%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Portuguese 11% Romanian 3% Iranian 2%
• Foreign-born: 15% · Canada, Vietnam, China
• Languages at home: 81% English-only · Spanish 3% 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: ▼ -126.08%
• Current HPI: 253.7999
• Rent YoY: ▲ 2.18%
• 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

+351.1% since first listed

28 events — show timeline

• 2026-05-28 Listed $300,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-01-25 Sold (Public Records) $267,500 Public Records
• 2023-01-17 Sold (Public Records) $267,500 Public Records
• 2022-08-08 Sold (Public Records) $267,500 Public Records
• 2022-07-28 Sold (MLS) $267,500 NORTHSTARMLS as Distributed by MLS Grid
• 2022-06-29 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2022-06-24 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2022-06-17 Listed $264,900 NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-11 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2015-07-15 Sold (Public Records) $158,500 Public Records
• 2015-07-15 Sold (MLS) $158,500 NORTHSTARMLS as Distributed by MLS Grid
• 2015-05-23 Listed $158,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-11-12 Sold (MLS) $148,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-11-12 Sold (MLS) $148,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-02-04 Listed $147,900 NORTHSTARMLS as Distributed by MLS Grid
• 2013-02-04 Listed $147,900 NORTHSTARMLS as Distributed by MLS Grid
• 2012-06-08 Listed $149,900 NORTHSTARMLS as Distributed by MLS Grid
• 2012-06-08 Listed $149,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-06-19 Sold (Public Records) $159,000 Public Records
• 2007-06-07 Sold (MLS) $159,900 NORTHSTARMLS as Distributed by MLS Grid
• 2007-03-16 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-02-19 Listed $154,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-04-23 Sold (Public Records) $138,900 Public Records
• 2004-04-16 Sold (MLS) $134,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-02-16 Listed $134,900 NORTHSTARMLS as Distributed by MLS Grid
• 1989-09-01 Sold (Public Records) $66,500 Public Records

Property tax history

+6.8%/yr

Latest (2025): $3,440 · +9.1% YoY. Source: county tax records.