431 S Milky Way St

Cosmos, MN 56228

$99,000B-

4 bd · 2.0 ba · 962 sqft · Built 1926 · SingleFamily · Active · 167 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,000/mo
• Mortgage (P&I): −$519
• Tax + insurance: −$63
• HOA: −$0
• Vac / Maint / Mgmt: −$210
• Net cashflow: $208/mo
• Annual: $2,498/yr
• Cap rate: 8.82%
• Cash-on-cash: 9.01%
• DSCR: 1.40
• 1% rule: 1.01%
• Cash to close: $27,720

Investor read

• This is a 4-bed/2.0-bath single-family listed at $99k.
• At list price, monthly cash flow is $208 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $99k).
• It's been on market 167 days — a 12% lower offer ($87k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $87k (12.0% below list) — sets the bar for market timing.
• In year one you build about $9k of equity ($684 loan paydown + $8k appreciation (8.2% local appreciation)).
• Location reads 69/100 on livability (#363 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime D, amenities F.
• A.C.G.C. Public School District (rural): math 36% / reading 47% proficiency, ranked #209 of 301 in MN (top 69%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: A.C.G.C. Elementary (math 57% / reading 42%, grade D, #423 of 857 statewide, top 55%, 344 students, 54% FRL); Acgc Elementary Grades 5 And 6 (math 22% / reading 52%, grade F, #163 of 258 statewide, top 65%, 128 students, 63% FRL); A.C.G.C. Secondary (math 32% / reading 47%, grade F, #246 of 471 statewide, top 59%, 379 students, 51% FRL) — zoned schools average 56% FRL vs 32% district-wide (24 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: built in 1926 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 73 units permitted in Meeker County in 2024 (5 in 5+ unit buildings).
• Meeker County population projected at -17% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 6 sale attempts since 14y 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.
• Current owner paid $14k; list at $99k implies a 583% gain — meaningful room to come down on a strong offer.
• At projected returns (8.2% appreciation + 3.0% rent growth), your $28k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 4, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 167 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1926 — 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 F-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.