506 Lynn Rd SW · Hutchinson, MN 55350

$230,000

3 bd · 3.0 ba · 1,342 sqft · SingleFamily public records · 2 Days on market

Built 1940 9,504 sqft lot

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Why this score? — see what drove the F 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 +8.2/30.0
• ARV discount +7.5/15.0
• Schools +4.8/10.0
• Livability +4.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• DSCR +2.2/10.0
• 1% rule +2.1/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

SW Hutchinson 2 story home features granite counters, front porch, hardwood floors and 3 bedrooms on one level. Deck overlooks back yard. Oversized one stall garage.

Key facts

• 9,504 sq ft lot
• Garage
• Built 1940

Property features AI

Exterior

• Parking: Asphalt driveway; 1-car garage (17x20)
• Utilities: City water (in street); City sewer (in street); 200+ amp electrical service with circuit breakers; Natural gas
• Home design: Residential property; Two levels
• Construction: Concrete construction; Block foundation
• Exterior features: Deck; Wood exterior; Vinyl and wood fencing; Light tree coverage; City street frontage, public maintained road

Interior

• Kitchen: Kitchen with window; Range; Microwave; Dishwasher; Refrigerator
• Bedrooms: Three bedrooms (upper level); Office on lower level
• Flooring: Hardwood floors
• Bathrooms: One full bath (upper level); One half bath
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished basement with daylight/lookout windows and sump pump; Informal dining area; Sun room; Hardwood floors; Two decorative wood-burning fireplaces; 3 bedrooms on one level
• Laundry & utility: Laundry room in basement; Washer and dryer included; Electric dryer hookup; Gas water heater

What this means for you Summary

Snapshot

• This is a 3-bed/3.0-bath single-family listed at $230k.

Deal economics

• At list price, monthly cash flow is $-219 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $191k (16.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $163k (29.2% below list).
• Recommended offer: $163k (29.2% below list) — sets the bar for 1% rule.
• Cap rate 5.1% vs local median 3.1% in Hutchinson — 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 80/100 on livability (#72 in MN, #1,744 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: commute F.
• Hutchinson Public School District (town): math 56% / reading 56% proficiency, ranked #62 of 301 in MN (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Hutchinson West Elementary (426 students, 42% FRL); Hutchinson Middle (math 53% / reading 59%, grade B-, #41 of 258 statewide, top 16%, 565 students, 37% FRL); Hutchinson Senior High (math 52% / reading 62%, grade C, #64 of 471 statewide, top 16%, 908 students, 31% FRL).
• Market conditions: 115 active listings in the ZIP; 4 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 57 units permitted in McLeod County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• McLeod County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• 4 sale attempts since 29y ago; this cycle's ask is 21% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $190k; 21% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $162,900 (29.2% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. Built in 1940 — 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 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?
5. 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?
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 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: 0.71% ✗
• Cap rate: 5.15%
• Cash-on-cash: -4.09%
• DSCR: 0.82
• GRM: 11.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: -23.2%
• Equity multiple: 0.20×
• Total profit: $-51,260
• Equity at exit: $34,294

10-year hold

• IRR: -17.9%
• Equity multiple: 0.03×
• Total profit: $-62,724
• Equity at exit: $19,886

Cash invested: $64,400 (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 55350

• Home prices YoY: -30.6%
• Active inventory: 115
• Price-to-rent: 11.8×

Monthly cashflow live

• Estimated rent: $1,629 medium
• Mortgage (P&I): −$1,206
• Tax from tax record: −$204 /mo · $2,450/yr
• Insurance: −$96
• HOA: −$0
• Vacancy / Maint / Mgmt: −$342
• Net cashflow: $-219

Break-even live

Break-even rent $1,907

Max offer price $191,271

Occupancy floor —

Sensitivity live

Price	-10% $-89	-5% $-154	+0% $-219	+5% $-284	+10% $-349
Rent	-10% $-348	-5% $-284	+0% $-219	+5% $-155	+10% $-91
Rate	-1.0pp $-103	-0.5pp $-161	base $-219	+0.5pp $-279	+1.0pp $-339

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: $57,500
• Closing costs: $6,900
• Reserves months: —
• Total cash needed: —

Rent comps 4 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
550 Lincoln Ave SW Hutchinson, MN	2.0	2.0	1800	$1,875	$1.04	45d	1	0.40mi
235 Echo Cir SE Unit 211 Hutchinson, MN	2.0	1.0	1000	$1,250	$1.25	45d	1	0.63mi
1220 Sunset St SW Hutchinson, MN	2.0	2.0	1230	$1,675	$1.36	45d	1	0.78mi
1035 Texas Ave NW Hutchinson, MN	1.0–3.0	1.0–1.5	1010	$1,545	$1.53	45d	1	1.00mi

Listing history 5 events

1. 2026-06-09
   statusdays on market $230,000 Pending 2 DOM
2. 2026-06-08
   statusdays on market $230,000 Active 1 DOM
3. 2026-06-07
   days on market $230,000 Coming Soon 2 DOM
4. 2026-06-07
   remarks 699-char remark
5. 2026-06-07
   listed $230,000 Coming Soon 1 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: $2,450 · $204/mo
• Projected year-2 tax: $2,513 · $209/mo
• Expected delta: +$63/yr (+$5/mo · 2.6%)

ⓘ 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 ≥99°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: $19,548
• − Mortgage interest: −$12,884
• − Property taxes: −$2,450
• − Insurance: −$1,150
• − Repairs & maintenance: −$1,564
• − Management: −$1,564
• − Depreciation: −$6,691
• Taxable loss: −$6,754
• Est. tax savings @ 24.0%: +$1,621
• After-tax cash flow: $-1,010/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: Hutchinson Public School District
• NCES district ID: 2714970
• Math proficiency: 56% ▼ -9.00%
• Reading proficiency: 56% ▼ -10.00%
• Median HH income: $56,261
• Composite: 48.36/100
• National rank: #2143
• State rank: #62 of 301 in MN

Livability — Hutchinson

• Score: 80/100
• State rank: #72
• US rank: #1744

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hutchinson, MN
• City population: 18,567
• Population (ZIP): 18,567

Population outlook (McLeod County) Hauer SSP2

• Today (2025): 34,517 people
• By 2030: 33,442 · -3.1%
• By 2040: 30,815 · -10.7%
• By 2050: 27,695 · -19.8%
• By 2075: 21,923 · -36.5%
• By 2100: 17,237 · -50.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Hispanic / Latino 4% Two or more races 3%
• Common ancestry: Portuguese 13% Romanian 4% Lithuanian 2%
• Foreign-born: 3% · Canada, China
• Languages at home: 96% English-only · Spanish 2% Chinese 1%

Political lean MEDSL · McLeod

• 2024 margin: Solid R (+38.0) · D 30.2% · R 68.1% · Other 1.7%
• 2008→2024 swing: -19.6pp toward R · 2008: -18.3pp · 2024: -38.0pp
• All cycles: 2024: R+38.0 2020: R+36.2 2016: R+38.4 2012: R+22.2 2008: R+18.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -89.48%
• Current HPI: 203.0298
• 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

+130.2% since first listed

15 events — show timeline

• 2026-06-05 Coming Soon $230,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-10-05 Sold (Public Records) $189,900 Public Records
• 2021-10-05 Sold (MLS) $189,900 NORTHSTARMLS as Distributed by MLS Grid
• 2021-09-03 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2021-08-26 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2021-08-23 Listed $189,900 NORTHSTARMLS as Distributed by MLS Grid
• 2012-04-10 Sold (MLS) $34,900 NORTHSTARMLS as Distributed by MLS Grid
• 2012-01-13 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2011-10-24 Listed $34,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-05-25 Sold (MLS) $112,000 NORTHSTARMLS as Distributed by MLS Grid
• 1999-04-20 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1999-02-02 Listed $112,500 NORTHSTARMLS as Distributed by MLS Grid
• 1997-12-02 Sold (MLS) $99,900 NORTHSTARMLS as Distributed by MLS Grid
• 1997-10-06 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1997-09-21 Listed $99,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+2.8%/yr

Latest (2026): $2,450 · -0.6% YoY. Source: county tax records.