233 Groveland Ave

Minneapolis, MN 55403

$379,900B-

3 bd · 2.0 ba · 2,856 sqft · Built 1928 · SingleFamily · Active · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,468/mo
• Mortgage (P&I): −$1,992
• Tax + insurance: −$633
• HOA: −$0
• Vac / Maint / Mgmt: −$938
• Net cashflow: $904/mo
• Annual: $10,850/yr
• Cap rate: 9.15%
• Cash-on-cash: 10.20%
• DSCR: 1.45
• 1% rule: 1.18%
• Cash to close: $106,372

Investor read

• This is a 3-bed/2.0-bath single-family listed at $380k. Condition is rated poor.
• At list price, monthly cash flow is $904 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $380k).
• It's been on market 121 days — a 12% lower offer ($334k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $334k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#110 in MN, #2,525 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living C-, crime F.
• Minneapolis Public School District (urban): math 35% / reading 46% proficiency, ranked #217 of 301 in MN (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ella Baker Elementary (math 2% / reading 17%, grade F, #829 of 857 statewide, top 98%, 602 students, 90% FRL); Anwatin Middle (math 12% / reading 27%, grade F, #234 of 258 statewide, top 92%, 320 students, 81% FRL); Southwest High (math 47% / reading 67%, grade C, #64 of 471 statewide, top 16%, 1,484 students, 29% FRL).
• Watch-outs: built in 1928 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.1%/yr); 154 active listings in the ZIP; 11 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 29y ago; this cycle's ask is 65% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $222k; list at $380k implies a 71% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $106k cash investment doubles in ~9 years — after that, you're playing with house money.
• Cap rate 9.1% vs local median 3.2% in Minneapolis — 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.
• At $4,468/mo this rent would consume 88% of the median local household income ($61k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 121 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1928 — 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.
• Crime grade is F 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.

Repairs flagged (vision-AI assessment)

• Major: Boarded-up windows — The windows are boarded up, indicating a significant issue that needs immediate attention.
• Major: Roof repair — The roof appears to be in a state of disrepair, with visible damage and potential leaks.
• Major: Exterior wall repair — The exterior walls are in poor condition, with visible cracks and wear.
• Major: Flooring replacement — The flooring is not visible in the provided images, but the exterior suggests a need for significant renovation.
• Major: Interior wall and paint repair — The interior walls and paint are not visible in the provided images, but the exterior suggests a need for significant renovation.
• Major: HVAC and mechanical system replacement — The HVAC and mechanical systems are not visible in the provided images, but the exterior suggests a need for significant renovation.