155 5th Ave NW

Elgin, MN 55932

$117,000D

2 bd · 1.0 ba · 992 sqft · Built 1970 · Manufactured · Active · 30 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $989/mo
• Mortgage (P&I): −$614
• Tax + insurance: −$263
• HOA: −$0
• Vac / Maint / Mgmt: −$208
• Net cashflow: $-95/mo
• Annual: $-1,145/yr
• Cap rate: 5.31%
• Cash-on-cash: -3.50%
• DSCR: 0.84
• 1% rule: 0.85%
• Cash to close: $32,760

Investor read

• This is a 2-bed/1.0-bath manufactured listed at $117k.
• At list price, monthly cash flow is $-95 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $100k (14.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $99k (15.5% below list).
• It's been on market 30 days — a 2% lower offer ($115k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $99k (15.5% below list) — sets the bar for 1% rule.
• In year one you build about $6k of equity ($809 loan paydown + $5k appreciation (4.6% local appreciation)).
• Location reads 71/100 on livability (#317 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Plainview-Elgin-Millville (town): math 59% / reading 58% proficiency, ranked #48 of 301 in MN (top 16%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 14 active listings in the ZIP; 81 units permitted in Wabasha County in 2024 (0 in 5+ unit buildings).
• Wabasha County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 3 sale attempts since 14y ago; this cycle's ask has dropped $18k (13%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $36k; list at $117k implies a 230% gain — meaningful room to come down on a strong offer.
• By year 6, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• 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?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?
• 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.