2120 Valleyhigh Dr NW Unit C206 · Rochester, MN 55901

$118,000

2 bd · 1.5 ba · 875 sqft · Condo public records · 6 Days on market

Built 1979 $270/mo HOA · 19% of rent

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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 +17.0/30.0
• ARV discount +7.5/15.0
• 1% rule +7.0/10.0
• DSCR +5.3/10.0
• 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

Affordable 2-bedroom, 2-bath condo featuring a private deck and an unbeatable location close to the douglas trail out your backyard, bus line, and downtown amenities. New toilets, faucets, garbage disposal, 2026. Enjoy comfortable living with easy access to recreation, commuting, shopping, and dining. A great opportunity for convenience and value! The association is professionally managed, with HOA fees covering heat, lawn care, snow removal, trash, and maintenance of the grounds making it a practical option for low-maintenance living.

Key facts

• Private deck
• Downtown amenities
• Unbeatable location

Tags

• PRIVATE DECK
• UNBEATABLE LOCATION
• BIKE PATH
• BUS LINE
• DOWNTOWN AMENITIES
• EASY ACCESS TO RECREATION

What this means for you Summary

Snapshot

• This is a 2-bed/1.5-bath condo listed at $118k.

Deal economics

• At list price, monthly cash flow is $81 ($971/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $118k).
• Cap rate 7.1% 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: Sunset Terrace Elementary (math 38% / reading 41%, grade F, #604 of 857 statewide, top 74%, 467 students, 56% FRL); John Marshall Senior High (math 37% / reading 58%, grade D, #162 of 471 statewide, top 35%, 1,573 students, 43% FRL) — zoned schools average 50% FRL vs 31% district-wide (19 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+2.2%/yr); 509 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals at typical pace (median 21d 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).
• This rent is only 18% of the median local income ($95k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $816 of loan paydown is wiped out by about $4k 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

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $67k; list at $118k implies a 76% gain — meaningful room to come down on a strong offer.

Recommended offer $118,000

Questions for the listing agent

1. Built in 1979 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.20% ✓
• Cap rate: 7.12%
• Cash-on-cash: 2.94%
• DSCR: 1.13
• GRM: 7.0

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: -12.7%
• Equity multiple: 0.55×
• Total profit: $-14,967
• Equity at exit: $17,594

10-year hold

• IRR: -5.0%
• Equity multiple: 0.68×
• Total profit: $-10,429
• Equity at exit: $10,202

Cash invested: $33,040 (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: 7.0×

Monthly cashflow live

• Estimated rent: $1,413 high
• Mortgage (P&I): −$619
• Tax from tax record: −$97 /mo · $1,168/yr
• Insurance: −$49
• HOA: −$270
• Vacancy / Maint / Mgmt: −$297
• Net cashflow: $81

Break-even live

Break-even rent $1,311

Max offer price $118,000

Occupancy floor 89%

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: $29,500
• Closing costs: $3,540
• Reserves months: —
• Total cash needed: —

Rent comps 16 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1860 20th St NW Unit 1860-6 Rochester, MN	2.0	1.0	800	$925	$1.16	21d	1	0.47mi
1258 17th Ave NW Rochester, MN	1.0–2.0	1.0	712	$1,395	$1.96	21d	5	0.55mi
1260 17th Ave NW Unit 12043 Rochester, MN	2.0	1.0	800	$1,325	$1.66	13d	1	0.56mi
1260 17th Ave NW Unit 12283 Rochester, MN	2.0	1.0	800	$1,325	$1.66	43d	1	0.56mi
1260 17th Ave NW Unit 12525 Rochester, MN	2.0	1.0	800	$1,395	$1.74	21d	1	0.56mi
2426 30th Ave NW Unit C Rochester, MN	2.0	1.0	900	$1,350	$1.50	43d	1	0.78mi
2409 Highway 52 N Rochester, MN	2.0	1.0	650	$1,165	$1.79	13d	10	0.83mi
1617 4th St NW Rochester, MN	3.0	1.0	790	$1,048	$1.33	13d	1	0.91mi
1460 26th St NW Rochester, MN	3.0	2.0	1100	$1,895	$1.72	21d	1	1.00mi
950 11th Ave NW Rochester, MN	2.0–3.0	2.0	1225	$1,245	$1.02	13d	8	1.02mi
970 11th Ave NW Rochester, MN	1.0–3.0	1.0–2.0	952	$1,430	$1.50	13d	6	1.05mi
1309 1st St SW Unit 2 Rochester, MN	2.0	1.0	625	$1,800	$2.88	43d	1	1.29mi
1418 1/2 1st St SW Apt 1 Rochester, MN	2.0	1.0	1000	$1,200	$1.20	13d	1	1.30mi
217 14th Ave SW Rochester, MN	3.0	1.0–2.0	1389	$3,215	$2.31	13d	35	1.38mi
1931 Viking Dr NW #24 Rochester, MN	1.0	1.0	700	$1,200	$1.71	43d	1	1.40mi
1119 2nd St SW Unit 33 Rochester, MN	1.0	1.0	668	$1,600	$2.40	43d	1	1.46mi

HOA detail condo

• Monthly dues: $270 · $3,240/yr
• Likely covers: trashlandscapingsnow removal
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 5 events

1. 2026-04-27
   status Pending
2. 2026-04-21
   listed $118,000 Active
3. 2004-09-03
   soldstatus $67,000
4. 2004-08-26
   soldstatus $67,000
5. 1992-07-01
   soldstatus $34,000

ⓘ 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: $1,168 · $97/mo
• Projected year-2 tax: $1,245 · $104/mo
• Expected delta: +$77/yr (+$6/mo · 6.6%)

ⓘ 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: $16,955
• − Mortgage interest: −$6,610
• − Property taxes: −$1,168
• − Insurance: −$590
• − Repairs & maintenance: −$1,356
• − Management: −$1,356
• − HOA: −$3,240
• − Depreciation: −$3,433
• Taxable loss: −$798
• Est. tax savings @ 24.0%: +$192
• After-tax cash flow: $1,163/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

+247.1% since first listed

5 events — show timeline

• 2026-04-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-21 Listed $118,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-09-03 Sold (Public Records) $67,000 Public Records
• 2004-08-26 Sold (Public Records) $67,000 Public Records
• 1992-07-01 Sold (Public Records) $34,000 Public Records

Property tax history

+7.7%/yr

Latest (2025): $1,168 · +20.7% YoY. Source: county tax records.