11521 Blackwood Rd

Floodwood, MN 55736

$76,000B+

2 bd · 1.0 ba · 1,180 sqft · Built 1965 · SingleFamily · Active · 22 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,024/mo
• Mortgage (P&I): −$399
• Tax + insurance: −$59
• HOA: −$0
• Vac / Maint / Mgmt: −$215
• Net cashflow: $351/mo
• Annual: $4,216/yr
• Cap rate: 11.84%
• Cash-on-cash: 19.81%
• DSCR: 1.88
• 1% rule: 1.35%
• Cash to close: $21,280

Investor read

• This is a 2-bed/1.0-bath single-family listed at $76k.
• At list price, monthly cash flow is $351 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $76k).
• It's been on market 22 days — a 2% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (1.5% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($525 loan paydown + $5k appreciation (6.5% local appreciation)).
• Location reads 66/100 on livability (#502 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D, amenities F, commute F.
• Floodwood Public School District (rural): math 40% / reading 50% proficiency, ranked #334 of 467 in MN (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 23 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).
• Current owner paid $30k; list at $76k implies a 153% gain — meaningful room to come down on a strong offer.
• At projected returns (6.5% appreciation + 3.0% rent growth), your $21k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$36k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1965 — 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.
• 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.