1240 Jackson Ave #401 · Detroit Lakes, MN 56501

$119,000

2 bd · 1.0 ba · 792 sqft · Condo public records · 37 Days on market

Built 1976 $150/mo HOA · 6% of rent

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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
• ARV discount +7.5/15.0
• Schools +4.0/10.0
• Livability +4.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

LOW Maintenance Living! 792 sq ft, 2 bedroom, 1 bathroom, lower level condo with a single stall detached garage. Condo fees are just $150/month and include basic building maintenance, snow removal, and lawn care — making for easy, low-maintenance living. Call your agent now to schedule a showing!

Key facts

• $150 HOA
• Garage
• Built 1976

Property features AI

Finance

• Other: Lot size approximately 0.06 acres
• HOA & community: HOA present; monthly fee of $150 covering air conditioning, heating, lawn care, grounds maintenance, shared amenities, and snow removal

Exterior

• Parking: Attached garage with 1 parking space
• Utilities: City water (connected); City sewer (connected); Electric and natural gas available
• Home design: Residential attached property; One story; Entry/main living all on one level
• Construction: Asphalt roof; Poured concrete foundation; Built with typical residential construction (vinyl exterior)
• Exterior features: Vinyl exterior; City street frontage; Publicly maintained road

Interior

• Kitchen: Includes microwave, range, refrigerator
• Bedrooms: 2 bedrooms (both on the main level)
• Bathrooms: 1 full bathroom (on the main level)
• Heating & cooling: Baseboard heating; Wall-mounted cooling unit(s)
• Interior features: Microwave, Range, Refrigerator; Basement present (no finished basement features listed)
• Laundry & utility: Utility room on the main level

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath condo listed at $119k.

Deal economics

• At list price, monthly cash flow is $1k ($14k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $119k).
• Recommended offer: $115k (3.0% below list) — sets the bar for market timing.
• Cap rate 18.2% vs local median 5.2% in Detroit Lakes — 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 80/100 on livability (#78 in MN, #1,847 nationally) — a professional / high-income tenant draw. Strengths: housing A+, health & safety A+, cost of living A; Watch: amenities F, commute F.
• Detroit Lakes Public School District (town): math 44% / reading 50% proficiency, ranked #155 of 301 in MN (top 52%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 301 active listings in the ZIP; 156 units permitted in Becker County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $823 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Becker County population projected at +4% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $33k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 37 days — a 3% lower offer ($115k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $49k; list at $119k implies a 143% gain — meaningful room to come down on a strong offer.

Recommended offer $115,430 (3.0% below list)

Questions for the listing agent

1. It's been on market 37 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
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. 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.
8. 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.
9. 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: 2.23% ✓
• Cap rate: 18.19%
• Cash-on-cash: 42.49%
• DSCR: 2.89
• GRM: 3.7

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 39.3%
• Equity multiple: 2.68×
• Total profit: $55,951
• Equity at exit: $17,743

10-year hold

• IRR: 45.7%
• Equity multiple: 5.38×
• Total profit: $145,862
• Equity at exit: $10,289

Cash invested: $33,320 (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 56501

• Active inventory: 301
• Price-to-rent: 3.7×

Monthly cashflow live

• Estimated rent: $2,649 medium
• Mortgage (P&I): −$624
• Tax from tax record: −$90 /mo · $1,074/yr
• Insurance: −$50
• HOA: −$150
• Vacancy / Maint / Mgmt: −$556
• Net cashflow: $1,180

Break-even live

Break-even rent $1,156

Max offer price $119,000

Occupancy floor 50%

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: $29,750
• Closing costs: $3,570
• Reserves months: —
• Total cash needed: —

HOA detail condo

• Monthly dues: $150 · $1,800/yr
• Likely covers: landscapingsnow removal
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 18 events

1. 2026-06-18
   days on market $119,000 Active 37 DOM
2. 2026-06-17
   days on market $119,000 Active 36 DOM
3. 2026-06-16
   days on market $119,000 Active 35 DOM
4. 2026-06-15
   days on market $119,000 Active 34 DOM
5. 2026-06-13
   days on market $119,000 Active 32 DOM
6. 2026-06-12
   days on market $119,000 Active 31 DOM
7. 2026-06-09
   days on market $119,000 Active 28 DOM
8. 2026-06-08
   days on market $119,000 Active 27 DOM
9. 2026-06-07
   days on market $119,000 Active 26 DOM
10. 2026-06-07
    days on market $119,000 Active 25 DOM
11. 2026-06-04
    days on market $119,000 Active 22 DOM
12. 2026-06-02
    days on market $119,000 Active 21 DOM
13. 2026-06-01
    days on market $119,000 Active 20 DOM
14. 2026-05-31
    days on market $119,000 Active 19 DOM
15. 2026-05-31
    days on market $119,000 Active 18 DOM
16. 2026-05-12
    listed $119,000 Active 303-char remark
17. 2003-04-09
    soldstatus $49,000
18. 2001-03-05
    soldstatus $48,000

ⓘ 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: $1,074 · $90/mo
• Projected year-2 tax: $1,203 · $100/mo
• Expected delta: +$129/yr (+$11/mo · 12.0%)

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

Taxation est. · year 1

• Rental income: $31,790
• − Mortgage interest: −$6,666
• − Property taxes: −$1,074
• − Insurance: −$595
• − Repairs & maintenance: −$2,543
• − Management: −$2,543
• − HOA: −$1,800
• − Depreciation: −$3,462
• Taxable income: $13,107
• Est. tax owed @ 24.0%: −$3,146
• After-tax cash flow: $11,011/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: Detroit Lakes Public School District
• NCES district ID: 2710230
• Math proficiency: 44% ▼ -11.00%
• Reading proficiency: 50% ▼ -11.00%
• Median HH income: $50,571
• Composite: 40.33/100
• National rank: #3746
• State rank: #155 of 301 in MN

Livability — Detroit Lakes

• Score: 80/100
• State rank: #78
• US rank: #1847

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Detroit Lakes, MN
• City population: 18,239
• Population (ZIP): 18,239

Population outlook (Becker County) Hauer SSP2

• Today (2025): 34,604 people
• By 2030: 35,095 · +1.4%
• By 2040: 35,691 · +3.1%
• By 2050: 35,869 · +3.7%
• By 2075: 36,103 · +4.3%
• By 2100: 32,798 · -5.2%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 5% Native American 2%
• Common ancestry: Portuguese 25% Scottish 4% Lithuanian 3%
• Foreign-born: 1% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Becker

• 2024 margin: Solid R (+33.1) · D 32.7% · R 65.8% · Other 1.5%
• 2008→2024 swing: -26.3pp toward R · 2008: -6.9pp · 2024: -33.1pp
• All cycles: 2024: R+33.1 2020: R+30.1 2016: R+33.2 2012: R+14.6 2008: R+6.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -222.40%
• Current HPI: 217.4973
• 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

+147.9% since first listed

3 events — show timeline

• 2026-05-12 Listed $119,000 NORTHSTARMLS as Distributed by MLS Grid
• 2003-04-09 Sold (Public Records) $49,000 Public Records
• 2001-03-05 Sold (Public Records) $48,000 Public Records

Property tax history

+5.4%/yr

Latest (2025): $1,074 · +11.9% YoY. Source: county tax records.