1022 Sunrise Ln

Caledonia, MN 55921

$25,000B

2 bd · 1.0 ba · 952 sqft · Built 1980 · Manufactured · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $669/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$42
• HOA: −$0
• Vac / Maint / Mgmt: −$140
• Net cashflow: $356/mo
• Annual: $4,269/yr
• Cap rate: 23.37%
• Cash-on-cash: 60.98%
• DSCR: 3.71
• 1% rule: 2.68%
• Cash to close: $7,000

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $25k. Condition is rated fair.
• At list price, monthly cash flow is $356 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($669 rent vs $25k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $173 of loan paydown is wiped out by about $750 of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#45 in MN, #1,226 nationally) — a professional / high-income tenant draw. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F.
• Caledonia Public School District (rural): math 49% / reading 61% proficiency, ranked #69 of 301 in MN (top 23%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 23 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 48 units permitted in Houston County in 2024 (0 in 5+ unit buildings).
• Houston County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Major: siding — Significant wear and tear
• Major: roof — Siding condition suggests potential roof issues
• Major: flooring — Siding condition suggests potential subfloor issues
• Major: interior walls/paint — Siding condition suggests potential drywall issues
• Major: HVAC/mechanicals — Siding condition suggests potential HVAC issues
• Major: landscaping — No visible landscaping, but siding condition suggests potential curb appeal issues