323 7th Ave SE · Rochester, MN 55904

$149,999

2 bd · 1.5 ba · 576 sqft · SingleFamily public records · 55 Days on market

Built 1887 2,439 sqft lot $260/sqft · 7% below area Est $270k · 44% under

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Why this score? — see what drove the C- 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).

• Cash flow +16.3/30.0
• ARV discount +15.0/15.0
• DSCR +5.0/10.0
• Livability +4.6/5.0
• Schools +4.1/10.0
• 1% rule +4.0/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

Key facts

• 2,439 sq ft lot
• Built 1887
• Listed 55 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.5-bath single-family listed at $150k.

Deal economics

• At list price, monthly cash flow is $82 ($986/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $135k (10.0% below list).
• Recommended offer: $135k (10.0% below list) — sets the bar for 1% rule.
• Cap rate 7.0% vs local median 3.5% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+2.1%/yr); 149 active listings in the ZIP; 29 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 55 days — a 3% lower offer ($145k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 11y ago; this cycle's ask has dropped $15k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $65k; list at $150k implies a 131% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1887 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $134,928 (10.0% below list)

Questions for the listing agent

1. It's been on market 55 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
2. Built in 1887 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are A-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?
5. 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.
6. 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.
7. 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: 0.90% ✗
• Cap rate: 6.95%
• Cash-on-cash: 2.35%
• DSCR: 1.10
• GRM: 9.3

CMA / ARV

• ARV (median comp): $270,099
• List price: $149,999
• Delta: -44.47%
• Verdict: UNDERPRICED
• Comps: 3 within 2.0 mi

Projected returns pro-forma

-3.0% appreciation · 2.1% rent growth · sell at horizon

5-year hold

• IRR: -13.6%
• Equity multiple: 0.52×
• Total profit: $-20,297
• Equity at exit: $22,365

10-year hold

• IRR: -6.1%
• Equity multiple: 0.62×
• Total profit: $-15,866
• Equity at exit: $12,969

Cash invested: $42,000 (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 55904

• Rents YoY: 2.1%
• Active inventory: 149
• Price-to-rent: 9.3×

Monthly cashflow live

• Estimated rent: $1,349 high
• Mortgage (P&I): −$787
• Tax from tax record: −$135 /mo · $1,616/yr
• Insurance: −$62
• HOA: −$0
• Vacancy / Maint / Mgmt: −$283
• Net cashflow: $82

Break-even live

Break-even rent $1,245

Max offer price $149,999

Occupancy floor 89%

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: $37,500
• Closing costs: $4,500
• Reserves months: —
• Total cash needed: —

Rent comps 29 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
223 8th Ave SE Unit 2 Rochester, MN	1.0	1.0	600	$975	$1.62	43d	1	0.09mi
28 6th Ave SE Unit 3 Rochester, MN	1.0	1.0	650	$1,050	$1.62	21d	1	0.18mi
504 E Center St Unit 2 Rochester, MN	1.0	1.0	675	$800	$1.19	43d	1	0.26mi
449 E Center St Rochester, MN	1.0–3.0	1.0–2.0	1165	$2,670	$2.29	13d	40	0.29mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,148	$2.77	13d	91	0.63mi
401 Broadway Ave N Rochester, MN	2.0	1.0–2.0	799	$1,977	$2.47	13d	22	0.69mi
1513 2nd St NE Rochester, MN	1.0	1.0	496	$1,150	$2.32	13d	1	0.70mi
511 3rd Ave SW Rochester, MN	2.0	1.0	647	$1,795	$2.77	13d	26	0.70mi
400 1st Ave NW Rochester, MN	1.0–2.0	1.0–2.0	819	$1,510	$1.84	13d	7	0.73mi
418 6th St SW Unit A418-924 Rochester, MN	1.0	1.0	500	$1,200	$2.40	21d	1	0.78mi
418 6th St SW Unit A418-936 Rochester, MN	1.0	1.0	500	$1,150	$2.30	43d	1	0.78mi
418 6th St SW Unit A418-929 Rochester, MN	1.0	1.0	400	$1,100	$2.75	21d	1	0.78mi
28 7th St NE Rochester, MN	2.0	1.0–2.0	789	$2,750	$3.49	21d	18	0.79mi
603 1st St SW Rochester, MN	2.0	1.0	512	$1,295	$2.53	13d	3	0.88mi
621 1st St SW Rochester, MN	1.0	1.0	525	$1,170	$2.23	13d	3	0.91mi
620 2nd St SW Rochester, MN	1.0	1.0	406	$995	$2.45	13d	11	0.92mi
625 3rd St SW Rochester, MN	1.0–2.0	1.0	612	$1,395	$2.28	13d	3	0.94mi
212 7th St NW Unit 3 Rochester, MN	1.0	1.0	350	$950	$2.71	43d	1	0.95mi
718 5th St SW Rochester, MN	2.0	1.0	722	$1,400	$1.94	13d	4	1.01mi
504 14th St SE #6 Rochester, MN	2.0	1.0	725	$995	$1.37	43d	1	1.16mi
1427 6th Ave SE Unit 4 Rochester, MN	1.0	1.0	650	$825	$1.27	43d	1	1.18mi
204 13th St NW Rochester, MN	2.0	1.0	705	$1,208	$1.71	13d	4	1.24mi
210 13th St NW Unit 9 Rochester, MN	1.0	1.0	512	$1,045	$2.04	43d	1	1.25mi
226 13th St NW Unit 27 Rochester, MN	2.0	1.0	705	$1,120	$1.59	21d	1	1.27mi
1119 2nd St SW Unit 31 Rochester, MN	1.0	1.0	523	$1,395	$2.67	43d	1	1.28mi
1119 2nd St SW Unit 33 Rochester, MN	1.0	1.0	668	$1,600	$2.40	43d	1	1.28mi
109 16th St NE Unit A109-7 Rochester, MN	2.0	1.0	516	$975	$1.89	43d	1	1.35mi
109 16th St NE Unit A109-6 Rochester, MN	2.0	1.0	516	$1,095	$2.12	43d	1	1.35mi
970 11th Ave NW Rochester, MN	1.0–3.0	1.0–2.0	952	$1,430	$1.50	13d	6	1.48mi

Listing history 18 events

1. 2026-06-03
   statusdays on market $149,999 Pending 55 DOM
2. 2026-06-02
   days on market $149,999 Active 54 DOM
3. 2026-06-01
   days on market $149,999 Active 53 DOM
4. 2026-05-31
   days on market $149,999 Active 52 DOM
5. 2026-05-30
   days on market $149,999 Active 51 DOM
6. 2026-04-29
   price $155,000 375-char remark

   Show marketing remark (375 chars)

   Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

7. 2026-04-22
   price $159,000 375-char remark

   Show marketing remark (375 chars)

   Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

8. 2026-04-21
   status Active 375-char remark

   Show marketing remark (375 chars)

   Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

9. 2026-04-19
   historical Contingent - Inspection 375-char remark

   Show marketing remark (375 chars)

   Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

10. 2026-04-10
    listed $165,000 Active 375-char remark

    Show marketing remark (375 chars)

    Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

11. 2026-04-07
    historical $165,000 375-char remark

    Show marketing remark (375 chars)

    Nicely updated single family home just blocks away from Downtown. As you enter this home you will see brand new appliances, new flooring, new cabinets, new countertops, fresh paint, back splash in master bath, and more. The home is perfect for those looking for a home or investors looking for long term rental income. Schedule your showing today and come see this cute home.

12. 2018-12-10
    historical 252-char remark

    Show marketing remark (252 chars)

    Affordable housing in Rochester? You bet! Owner has updated many areas inside and out since purchasing. Walking distance to downtown and a block from the Mayo park, bike trail system, and the river. Why pay high rent when you can build your own equity?

13. 2017-04-17
    soldstatus $65,000
14. 2015-12-22
    soldstatus $45,000 252-char remark

    Show marketing remark (252 chars)

    Affordable housing in Rochester? You bet! Owner has updated many areas inside and out since purchasing. Walking distance to downtown and a block from the Mayo park, bike trail system, and the river. Why pay high rent when you can build your own equity?

15. 2015-12-22
    soldstatus $45,000

    Show marketing remark (252 chars)

    Affordable housing in Rochester? You bet! Owner has updated many areas inside and out since purchasing. Walking distance to downtown and a block from the Mayo park, bike trail system, and the river. Why pay high rent when you can build your own equity?

16. 2015-09-03
    listed $54,900 252-char remark

    Show marketing remark (252 chars)

    Affordable housing in Rochester? You bet! Owner has updated many areas inside and out since purchasing. Walking distance to downtown and a block from the Mayo park, bike trail system, and the river. Why pay high rent when you can build your own equity?

17. 2000-04-14
    soldstatus $42,400
18. 1995-08-01
    soldstatus $37,000

ⓘ 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: $1,616 · $135/mo
• Projected year-2 tax: $1,648 · $137/mo
• Expected delta: +$32/yr (+$3/mo · 2.0%)

ⓘ 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 ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,191
• − Mortgage interest: −$8,402
• − Property taxes: −$1,616
• − Insurance: −$750
• − Repairs & maintenance: −$1,295
• − Management: −$1,295
• − Depreciation: −$4,364
• Taxable loss: −$1,531
• Est. tax savings @ 24.0%: +$367
• After-tax cash flow: $1,353/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 29,639
• Household income: $77,016
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 864.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 10% Hispanic / Latino 8% Two or more races 5% Asian 3%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Portuguese 11% Lithuanian 2% Italian 2%
• Foreign-born: 11% · Canada, China, Vietnam
• Languages at home: 84% English-only · Spanish 5% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -161.04%
• Current HPI: 267.168
• Rent YoY: ▲ 2.10%
• Metro: Rochester, 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

+318.9% since first listed

13 events — show timeline

• 2026-04-29 Price Changed $155,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-22 Price Changed $159,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-21 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-19 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-10 Listed $165,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-07 Coming Soon $165,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2017-04-17 Sold (Public Records) $65,000 Public Records
• 2015-12-22 Sold (Public Records) $45,000 Public Records
• 2015-12-22 Sold (MLS) $45,000 NORTHSTARMLS as Distributed by MLS Grid
• 2015-09-03 Listed $54,900 NORTHSTARMLS as Distributed by MLS Grid
• 2000-04-14 Sold (Public Records) $42,400 Public Records
• 1995-08-01 Sold (Public Records) $37,000 Public Records

Property tax history

+9.7%/yr

Latest (2025): $1,616 · +7.3% YoY. Source: county tax records.