10035 Pokegama Lake Road Dr · Rock Creek, MN 55063

$225,000

12 bd · 7.2 ba · 12,702 sqft · MultiFamily · 61 Days on market

Built 1920 Poor condition 0.72 ac lot

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Why this score? — see what drove the B+ 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Schools +3.5/10.0
• Livability +3.1/5.0
• Rent growth +2.5/5.0
• Condition / age +1.0/5.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 4 units. confirmed

Listing remarks MLS

This property lies amongst mature trees with beautiful views of the popular Pokegama Lake/.72 acre site with historic brick building. Eagles soaring, tranquil beauty all around! It's a total rehab project. The property offers access to community well, city sewer, views of Lake Pokegama and across the street is the back waters of the Snake River which connects to the Lake. Great location, centrally located between the metro area and Duluth just off of Interstate 35 just west of Pine City, and near many recreational lakes for fishing and water sports. Boat landing 2 blks away! Come with your ideas for renovation of this unique building. Senior Rental or a Multifamily Rental? Sold AS IS. It was built as a Sanatorium in 1920.Current zoning is High Density Residential and commercia.Full disclosure, there are no actual Bed RM's, and plumbing is in however no bathrooms. Entire bldg is a clean slate to create your dream. Agent to Verify all measurements. Enter the building at your own risk.

Key facts

• Boat landing
• City sewer
• 0.72 acre lot

Tags

• VIEWS OF POKEGAMA LAKE
• HISTORIC BRICK BUILDING
• ACCESS TO COMMUNITY WELL
• CITY SEWER
• NEAR RECREATIONAL LAKES
• BOAT LANDING

What this means for you Summary

Snapshot

• This is a 4 × 3-bed/?-bath units multifamily listed at $225k. Condition is rated poor.

Deal economics

• At list price, monthly cash flow is $2k ($27k/yr) — positive. Per door: $570/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $225k).
• Recommended offer: $212k (6.0% below list) — sets the bar for market timing.
• Cap rate 18.4% vs local median 1.4% in Rock Creek — 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 61/100 on livability (#721 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living B+; Watch: schools D-, amenities F, commute F.
• Pine City Public School District (town): math 34% / reading 47% proficiency, ranked #222 of 301 in MN (top 74%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 98 active listings in the ZIP; 116 units permitted in Pine County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (10.0% local appreciation)).
• Pine County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $63k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$39k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 61 days — a 6% lower offer ($212k) is reasonable based on typical stale-listing flexibility.
• 6 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $211,500 (6.0% below list)

Questions for the listing agent

1. It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
9. 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.
10. 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.
11. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 2.16% ✓
• Cap rate: 18.45%
• Cash-on-cash: 43.41%
• DSCR: 2.93
• GRM: 3.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 58.1%
• Equity multiple: 5.25×
• Total profit: $267,761
• Equity at exit: $202,698

10-year hold

• IRR: 51.6%
• Equity multiple: 11.71×
• Total profit: $674,516
• Equity at exit: $437,126

Cash invested: $63,000 (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 55063

• Home prices YoY: 7.3%
• Active inventory: 98
• Price-to-rent: 15.5×

Monthly cashflow live

• Estimated rent: $4,853 medium
• Mortgage (P&I): −$1,180
• Tax est. 1.5%: −$281 /mo · $3,375/yr
• Insurance: −$94
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,019
• Net cashflow: $2,279

Break-even live

Break-even rent $1,968

Max offer price $225,000

Occupancy floor 48%

Sensitivity live

Price	-10% $2,434	-5% $2,357	+0% $2,279	+5% $2,201	+10% $2,123
Rent	-10% $1,896	-5% $2,087	+0% $2,279	+5% $2,471	+10% $2,662
Rate	-1.0pp $2,392	-0.5pp $2,336	base $2,279	+0.5pp $2,221	+1.0pp $2,161

4-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 4× units	3	—	$4,852
Total (4 units)			$4,853

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: $56,250
• Closing costs: $6,750
• Reserves months: —
• Total cash needed: —

Listing history 27 events

1. 2026-06-21
   days on market $225,000 Active 61 DOM
2. 2026-06-18
   days on market $225,000 Active 59 DOM
3. 2026-06-17
   days on market $225,000 Active 58 DOM
4. 2026-06-16
   days on market $225,000 Active 57 DOM
5. 2026-06-15
   days on market $225,000 Active 56 DOM
6. 2026-06-13
   days on market $225,000 Active 54 DOM
7. 2026-06-12
   days on market $225,000 Active 53 DOM
8. 2026-06-09
   days on market $225,000 Active 50 DOM
9. 2026-06-08
   days on market $225,000 Active 49 DOM
10. 2026-06-07
    days on market $225,000 Active 48 DOM
11. 2026-06-07
    days on market $225,000 Active 47 DOM
12. 2026-06-04
    days on market $225,000 Active 44 DOM
13. 2026-06-02
    days on market $225,000 Active 43 DOM
14. 2026-06-01
    days on market $225,000 Active 42 DOM
15. 2026-05-31
    days on market $225,000 Active 41 DOM
16. 2026-05-31
    days on market $225,000 Active 40 DOM
17. 2026-05-01
    status Active 997-char remark

    Show marketing remark (997 chars)

    This property lies amongst mature trees with beautiful views of the popular Pokegama Lake/.72 acre site with historic brick building. Eagles soaring, tranquil beauty all around! It's a total rehab project. The property offers access to community well, city sewer, views of Lake Pokegama and across the street is the back waters of the Snake River which connects to the Lake. Great location, centrally located between the metro area and Duluth just off of Interstate 35 just west of Pine City, and near many recreational lakes for fishing and water sports. Boat landing 2 blks away! Come with your ideas for renovation of this unique building. Senior Rental or a Multifamily Rental? Sold AS IS. It was built as a Sanatorium in 1920.Current zoning is High Density Residential and commercia.Full disclosure, there are no actual Bed RM's, and plumbing is in however no bathrooms. Entire bldg is a clean slate to create your dream. Agent to Verify all measurements. Enter the building at your own risk.

18. 2026-04-25
    historical 997-char remark

    Show marketing remark (997 chars)

    This property lies amongst mature trees with beautiful views of the popular Pokegama Lake/.72 acre site with historic brick building. Eagles soaring, tranquil beauty all around! It's a total rehab project. The property offers access to community well, city sewer, views of Lake Pokegama and across the street is the back waters of the Snake River which connects to the Lake. Great location, centrally located between the metro area and Duluth just off of Interstate 35 just west of Pine City, and near many recreational lakes for fishing and water sports. Boat landing 2 blks away! Come with your ideas for renovation of this unique building. Senior Rental or a Multifamily Rental? Sold AS IS. It was built as a Sanatorium in 1920.Current zoning is High Density Residential and commercia.Full disclosure, there are no actual Bed RM's, and plumbing is in however no bathrooms. Entire bldg is a clean slate to create your dream. Agent to Verify all measurements. Enter the building at your own risk.

19. 2026-04-13
    listed $225,000 Active 997-char remark

    Show marketing remark (997 chars)

    This property lies amongst mature trees with beautiful views of the popular Pokegama Lake/.72 acre site with historic brick building. Eagles soaring, tranquil beauty all around! It's a total rehab project. The property offers access to community well, city sewer, views of Lake Pokegama and across the street is the back waters of the Snake River which connects to the Lake. Great location, centrally located between the metro area and Duluth just off of Interstate 35 just west of Pine City, and near many recreational lakes for fishing and water sports. Boat landing 2 blks away! Come with your ideas for renovation of this unique building. Senior Rental or a Multifamily Rental? Sold AS IS. It was built as a Sanatorium in 1920.Current zoning is High Density Residential and commercia.Full disclosure, there are no actual Bed RM's, and plumbing is in however no bathrooms. Entire bldg is a clean slate to create your dream. Agent to Verify all measurements. Enter the building at your own risk.

20. 2026-01-29
    historical
21. 2025-07-22
    status Active
22. 2024-02-15
    status Pending
23. 2024-02-15
    price $225,000
24. 2023-12-06
    status Active
25. 2023-10-10
    status Active
26. 2023-09-15
    listed $120,000 Active
27. 2023-09-14
    historical

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

Taxation est. · year 1

• Rental income: $58,236
• − Mortgage interest: −$12,603
• − Property taxes: −$3,375
• − Insurance: −$1,125
• − Repairs & maintenance: −$4,659
• − Management: −$4,659
• − Depreciation: −$6,545
• Taxable income: $25,269
• Est. tax owed @ 24.0%: −$6,065
• After-tax cash flow: $21,283/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.

Condition & rehab AI · 12 photos

Poor 20/100 Gut rehab

This abandoned property requires extensive gut renovation and maintenance to be suitable for resale or rental.

Repairs flagged

• Major windows — Broken windows with no glass
• Major exteriors — Overgrown vegetation and graffiti
• Major interiors — Graffiti and debris

Value-add opportunities

• Both Clear overgrown vegetation and remove graffiti — Improves curb appeal and safety
• Both Replace broken windows — Enhances safety and property value
• Both Deep clean and paint interior — Restores interior and enhances rental potential

Renovation cost estimate screening

Repair item	Severity	Est. cost
windows · Broken windows with no glass	Major	$15,000–50,000
exteriors · Overgrown vegetation and graffiti	Major	$15,000–50,000
interiors · Graffiti and debris	Major	$15,000–50,000
Total estimated repair cost · 3 items		$45,000–150,000

Value-add ROI direction

• Both Clear overgrown vegetation and remove graffiti — Improves curb appeal and safety ↑
• Both Replace broken windows — Enhances safety and property value ↑
• Both Deep clean and paint interior — Restores interior and enhances rental potential ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Pine City Public School District
• NCES district ID: 2728380
• Math proficiency: 34% ▼ -15.00%
• Reading proficiency: 47% ▼ -9.00%
• Median HH income: $47,606
• Composite: 34.63/100
• National rank: #5148
• State rank: #222 of 301 in MN

Livability — Rock Creek

• Score: 61/100
• State rank: #721
• US rank: #17423

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 9,270

Population outlook (Pine County) Hauer SSP2

• Today (2025): 27,565 people
• By 2030: 26,567 · -3.6%
• By 2040: 23,878 · -13.4%
• By 2050: 20,931 · -24.1%
• By 2075: 15,372 · -44.2%
• By 2100: 11,032 · -60.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 3% Hispanic / Latino 2% Black 1%
• Common ancestry: Portuguese 11% Romanian 3% Lithuanian 3%
• Foreign-born: 1%
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Pine

• 2024 margin: Solid R (+35.2) · D 31.6% · R 66.8% · Other 1.6%
• 2008→2024 swing: -36.7pp toward R · 2008: 1.5pp · 2024: -35.2pp
• All cycles: 2024: R+35.2 2020: R+30.2 2016: R+26.3 2012: R+0.7 2008: D+1.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 17.98%
• Current HPI: 262.63
• Rent YoY: —
• Metro: —
• 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

+87.5% since first listed

11 events — show timeline

• 2026-05-01 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-25 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-13 Listed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-29 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-22 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2024-02-15 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2024-02-15 Price Changed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2023-12-06 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2023-10-10 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2023-09-15 Listed $120,000 NORTHSTARMLS as Distributed by MLS Grid
• 2023-09-14 Coming Soon — NORTHSTARMLS as Distributed by MLS Grid