238 Locust Ave · Owatonna, MN 55060

$132,000

2 bd · 1.0 ba · 1,087 sqft · SingleFamily public records · 210 Days on market

Built 1910 5,662 sqft lot $121/sqft · 29% below area Est $211k · 37% under

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +10.2/30.0
• Livability +3.8/5.0
• Schools +3.7/10.0
• 1% rule +3.0/10.0
• DSCR +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

Key facts

• Single car garage
• Large kitchen
• Back deck

Tags

• LARGE KITCHEN
• BREAKFAST BAR
• BACK DECK
• SINGLE CAR GARAGE

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $132k.

Deal economics

• At list price, monthly cash flow is $-74 ($-891/yr) — negative.
• To cash-flow at today's rent, offer at most $119k (9.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $106k (20.1% below list).
• Recommended offer: $106k (20.1% below list) — sets the bar for 1% rule.
• Cap rate 5.6% vs local median 3.2% in Owatonna — 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.

Location & tenants

• Location reads 76/100 on livability (#155 in MN, #3,413 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: amenities D-, commute F, health & safety D-.
• Owatonna Public School District (town): math 38% / reading 47% proficiency, ranked #194 of 301 in MN (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Washington Elementary (math 56% / reading 53%, grade C, #320 of 857 statewide, top 41%, 487 students, 48% FRL); Owatonna Middle School (math 25% / reading 42%, grade F, #182 of 258 statewide, top 71%, 999 students, 49% FRL); Owatonna Senior High (math 49% / reading 65%, grade C, #64 of 471 statewide, top 16%, 1,475 students, 39% FRL).
• Market conditions: 222 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 28 units permitted in Steele County in 2024 (0 in 5+ unit buildings).
• This rent is only 15% of the median local income ($85k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $913 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Steele County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 210 days — a 12% lower offer ($116k) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 12y ago; this cycle's ask has dropped $43k (25%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $108k; 22% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $105,500 (20.1% below list)

Questions for the listing agent

1. 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?
2. It's been on market 210 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
3. Built in 1910 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 0.80% ✗
• Cap rate: 5.62%
• Cash-on-cash: -2.41%
• DSCR: 0.89
• GRM: 10.4

CMA / ARV

• ARV (median comp): $211,136
• List price: $132,000
• Delta: -37.48%
• Verdict: UNDERPRICED
• Comps: 2 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -20.3%
• Equity multiple: 0.29×
• Total profit: $-26,107
• Equity at exit: $19,682

10-year hold

• IRR: -13.4%
• Equity multiple: 0.22×
• Total profit: $-28,771
• Equity at exit: $11,413

Cash invested: $36,960 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 46 Balanced
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City: — inherits STATE

2024 reforms strengthened tenant protections; ramsey/hennepin courts paced moderate to slow.

Methodology + full state rankings →

ZIP-level market 55060

• Home prices YoY: -30.5%
• Active inventory: 222
• Price-to-rent: 10.4×

Monthly cashflow live

• Estimated rent: $1,055 high
• Mortgage (P&I): −$692
• Tax from tax record: −$160 /mo · $1,926/yr
• Insurance: −$55
• HOA: −$0
• Vacancy / Maint / Mgmt: −$222
• Net cashflow: $-74

Break-even live

Break-even rent $1,149

Max offer price $118,879

Occupancy floor —

Sensitivity live

Price	-10% $0	-5% $-37	+0% $-74	+5% $-112	+10% $-149
Rent	-10% $-158	-5% $-116	+0% $-74	+5% $-33	+10% $9
Rate	-1.0pp $-8	-0.5pp $-41	base $-74	+0.5pp $-108	+1.0pp $-143

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $33,000
• Closing costs: $3,960
• Reserves months: —
• Total cash needed: —

Rent comps 7 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
328 Pine Ave Unit 1 Owatonna, MN	1.0	1.0	700	$995	$1.42	45d	1	0.45mi
236 E Rose St Unit 236 1/2 Owatonna, MN	2.0	1.0	900	$1,100	$1.22	45d	1	0.70mi
230 E Rose St Unit 2 Owatonna, MN	2.0	1.0	850	$975	$1.15	45d	1	0.71mi
415 S Cedar Ave Unit 3 Owatonna, MN	1.0	1.0	750	$850	$1.13	45d	1	0.97mi
717 S Cedar Ave Apt 2 Owatonna, MN	1.0	1.0	700	$1,050	$1.50	45d	1	1.08mi
312 Riverside Ave Unit 1 Owatonna, MN	2.0	1.0	1000	$1,300	$1.30	45d	1	1.17mi
421 State Ave Unit 203 Owatonna, MN	1.0	1.0	700	$949	$1.36	45d	1	1.39mi

Listing history 46 events

1. 2026-06-22
   days on market $132,000 Active 210 DOM
2. 2026-06-21
   days on market $132,000 Active 209 DOM
3. 2026-06-19
   days on market $132,000 Active 207 DOM
4. 2026-06-18
   days on market $132,000 Active 206 DOM
5. 2026-06-17
   days on market $132,000 Active 205 DOM
6. 2026-06-16
   days on market $132,000 Active 204 DOM
7. 2026-06-15
   days on market $132,000 Active 203 DOM
8. 2026-06-14
   days on market $132,000 Active 201 DOM
9. 2026-06-12
   days on market $132,000 Active 200 DOM
10. 2026-06-09
    days on market $132,000 Active 197 DOM
11. 2026-06-08
    days on market $132,000 Active 196 DOM
12. 2026-06-07
    days on market $132,000 Active 195 DOM
13. 2026-06-05
    days on market $132,000 Active 192 DOM
14. 2026-06-03
    pricedays on market $132,000 Active 191 DOM
15. 2026-06-02
    days on market $142,000 Active 190 DOM
16. 2026-06-01
    days on market $142,000 Active 189 DOM
17. 2026-05-31
    days on market $142,000 Active 188 DOM
18. 2026-05-30
    days on market $142,000 Active 187 DOM
19. 2026-05-05
    price $142,000 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

20. 2026-03-31
    price $149,900 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

21. 2026-02-26
    price $159,900 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

22. 2026-01-27
    price $162,000 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

23. 2025-12-26
    price $169,900 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

24. 2025-11-24
    listed $174,900 Active 433-char remark

    Show marketing remark (433 chars)

    This inviting residence features 2 bedrooms. The main floor offers a warm and functional layout, including a large kitchen with a breakfast bar, and a convenient half bath. A single car garage provides excellent storage and parking. Step outside to enjoy the backyard, ideal for relaxing or entertaining. While the home may benefit from updates, it remains in great overall condition and is filled with potential for its next owner.

25. 2016-07-25
    soldstatus $107,900
26. 2016-07-21
    soldstatus $107,900 Sold 154-char remark

    Show marketing remark (154 chars)

    Great starter home in the heart of Owatonna. Comfortable 2 bedroom on large city lot. Single car garage with work space. Outside storage unit, must see.

27. 2016-06-25
    status Pending 154-char remark

    Show marketing remark (154 chars)

    Great starter home in the heart of Owatonna. Comfortable 2 bedroom on large city lot. Single car garage with work space. Outside storage unit, must see.

28. 2016-05-24
    listed $104,900 Active 154-char remark

    Show marketing remark (154 chars)

    Great starter home in the heart of Owatonna. Comfortable 2 bedroom on large city lot. Single car garage with work space. Outside storage unit, must see.

29. 2014-09-19
    soldstatus $82,000 Sold
30. 2014-09-19
    soldstatus $82,000
31. 2014-09-19
    soldstatus $82,000
32. 2014-09-19
    soldstatus $82,000
33. 2014-09-19
    soldstatus $82,000
34. 2014-09-19
    soldstatus $82,000 Sold
35. 2014-08-08
    status Pending
36. 2014-08-08
    status Pending
37. 2014-07-25
    historical Contingent - Inspection
38. 2014-07-25
    historical Contingent - Inspection
39. 2014-06-05
    listed $79,900 Active
40. 2014-06-05
    listed $79,900
41. 2014-06-05
    listed $79,900
42. 2014-06-04
    listed $79,900 Active
43. 2014-06-04
    listed $79,900
44. 2014-06-04
    listed $79,900
45. 2008-10-27
    soldstatus $119,900
46. 2007-11-01
    soldstatus $119,900

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MN · Partial reset (capped growth)

• Current annual tax: $1,926 · $160/mo
• Projected year-2 tax: $1,926 · $160/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥101°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $12,660
• − Mortgage interest: −$7,394
• − Property taxes: −$1,926
• − Insurance: −$660
• − Repairs & maintenance: −$1,013
• − Management: −$1,013
• − Depreciation: −$3,840
• Taxable loss: −$3,186
• Est. tax savings @ 24.0%: +$765
• After-tax cash flow: $-127/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Owatonna Public School District
• NCES district ID: 2728050
• Math proficiency: 38% ▼ -12.00%
• Reading proficiency: 47% ▼ -7.00%
• Median HH income: $56,373
• Composite: 37.14/100
• National rank: #4487
• State rank: #194 of 301 in MN

Livability — Owatonna

• Score: 76/100
• State rank: #155
• US rank: #3413

Category grades

Amenities D- Commute F Cost of living A+ Crime A Employment B+ Housing A+ Health & safety D- User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Owatonna, MN
• County: Steele County · 29,599 people
• City population: 29,599
• Metro: Owatonna, MN
• Population (ZIP): 29,599
• Household income: $84,906
• Rent vs Own: 22.8% rent · 77.2% own
• Severe rent burden: 598.0

Population outlook (Steele County) Hauer SSP2

• Today (2025): 36,618 people
• By 2030: 36,195 · -1.2%
• By 2040: 34,882 · -4.7%
• By 2050: 33,052 · -9.7%
• By 2075: 29,692 · -18.9%
• By 2100: 25,581 · -30.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (84%)
• Race & ethnicity: White 84% Hispanic / Latino 8% Two or more races 5% Black 4%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 16% Romanian 3% Italian 2%
• Foreign-born: 5% · Canada, South Korea
• Languages at home: 93% English-only · Spanish 4%

Political lean MEDSL · Steele

• 2024 margin: Strong R (+24.5) · D 36.8% · R 61.2% · Other 2.0%
• 2008→2024 swing: -19.1pp toward R · 2008: -5.3pp · 2024: -24.5pp
• All cycles: 2024: R+24.5 2020: R+22.4 2016: R+26.0 2012: R+6.3 2008: R+5.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -92.54%
• Current HPI: 211.0177
• Rent YoY: —
• Metro: Owatonna, MN
• State GDP YoY: ▲ 2.41%
• F500 in state: 34

Industry mix (Fortune 500 HQ in MN)

Industry	F500 HQs	Revenue
▸Healthcare	2	$407B
▸Retail	2	$150B
▸Consumer Goods	2	$32B
▸Industrial Machinery	2	$6B
▸Agriculture	1	$40B
▸Healthcare / Medical Devices	1	$32B

Price history

+18.4% since first listed

28 events — show timeline

• 2026-05-05 Price Changed $142,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-31 Price Changed $149,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-26 Price Changed $159,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-27 Price Changed $162,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-12-26 Price Changed $169,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-24 Listed $174,900 NORTHSTARMLS as Distributed by MLS Grid
• 2016-07-25 Sold (Public Records) $107,900 Public Records
• 2016-07-21 Sold (MLS) $107,900 NORTHSTARMLS as Distributed by MLS Grid
• 2016-06-25 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2016-05-24 Listed $104,900 NORTHSTARMLS as Distributed by MLS Grid
• 2014-09-19 Sold (MLS) $82,000 LSAR
• 2014-09-19 Sold (MLS) $82,000 RASM
• 2014-09-19 Sold (MLS) $82,000 RASM
• 2014-09-19 Sold (MLS) $82,000 LSAR
• 2014-09-19 Sold (MLS) $82,000 NORTHSTARMLS as Distributed by MLS Grid
• 2014-09-19 Sold (MLS) $82,000 NORTHSTARMLS as Distributed by MLS Grid
• 2014-08-08 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2014-08-08 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2014-07-25 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2014-07-25 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2014-06-05 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2014-06-05 Listed $79,900 LSAR
• 2014-06-05 Listed $79,900 RASM
• 2014-06-04 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2014-06-04 Listed $79,900 RASM
• 2014-06-04 Listed $79,900 LSAR
• 2008-10-27 Sold (Public Records) $119,900 Public Records
• 2007-11-01 Sold (Public Records) $119,900 Public Records

Property tax history

+9.4%/yr

Latest (2025): $1,926 · +33.8% YoY. Source: county tax records.