214 Garfield St S

Beardsley, MN 56211

$85,000B

2 bd · 1.0 ba · 1,196 sqft · Built 1917 · SingleFamily · Pending · 64 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,031/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$154
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $214/mo
• Annual: $2,572/yr
• Cap rate: 9.32%
• Cash-on-cash: 10.81%
• DSCR: 1.48
• 1% rule: 1.21%
• Cash to close: $23,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $85k.
• At list price, monthly cash flow is $214 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $85k).
• It's been on market 64 days — a 6% lower offer ($80k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $80k (6.0% below list) — sets the bar for market timing.
• In year one you build about $6k of equity ($588 loan paydown + $6k appreciation (6.6% local appreciation)).
• Location reads 64/100 on livability (#573 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety C-, crime D.
• Clinton-Graceville-Beardsley (rural): math 50% / reading 75% proficiency, ranked #116 of 467 in MN (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Pre-K - 5Th Grade Building (math 54% / reading 54%, grade C, #320 of 857 statewide, top 41%, 131 students, 39% FRL); 6-12Th Grade Building (math 27% / reading 57%, grade F, #222 of 471 statewide, top 50%, 127 students, 30% FRL) — zoned schools at 34% FRL track the district average.
• Zoned-school proficiency averages 48% at this address vs 62% district-wide (-14 pts) — the specific schools serving this property underperform the Clinton-Graceville-Beardsley average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1917 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 3 units permitted in Big Stone County in 2024 (0 in 5+ unit buildings).
• Big Stone County population projected at -23% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Current owner paid $55k; list at $85k implies a 55% gain — meaningful room to come down on a strong offer.
• At projected returns (6.6% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 64 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1917 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.