7381 Kaeding Ave NE · Otsego, MN 55301

$419,715

5 bd · 3.0 ba · 2,505 sqft · Other · 33 Days on market

Built 2026 Good condition 10,018 sqft lot $168/sqft · 24% below area Est $552k · 24% 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 +8.3/30.0
• Schools +5.2/10.0
• Condition / age +4.0/5.0
• Livability +3.5/5.0
• 1% rule +2.6/10.0
• Rent growth +2.5/5.0
• DSCR +2.3/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

Key facts

• Versatile loft
• Sleek kitchen
• Walk-in pantry

Tags

• OPEN-CONCEPT LIVING AREA
• SLEEK KITCHEN
• WALK-IN PANTRY
• COZY ELECTRIC FIREPLACE
• VERSATILE LOFT
• SECLUDED OWNER'S SUITE

Property features AI

Finance

• Other: Green certification pending
• HOA & community: Builders Association of the Twin Cities

Exterior

• Parking: Attached garage with garage door opener; Asphalt driveway; 2-car garage
• Utilities: City water connected; City sewer connected; 200+ amp electric service; Natural gas
• Home design: Residential property; Two levels; New construction; Slab foundation
• Construction: Concrete and frame construction; Asphalt roof (age 8 years or less); Built by Lennar
• Exterior features: Stone and vinyl exterior; Sod included in price; Underground utilities; City street with curbs and paved streets

Interior

• Kitchen: Kitchen with center island and window; Range; Microwave; Dishwasher; Refrigerator; Stainless steel appliances
• Bedrooms: 5 bedrooms total (includes a main-floor bedroom and additional bedrooms on the upper level); Loft on upper level
• Bathrooms: Two full bathrooms; One three-quarter (3/4) primary bathroom; Main-floor full bath
• Heating & cooling: Forced air heating; Fireplace(s) contribute to heating; Central air conditioning
• Interior features: Informal dining area; Paneled doors; Primary bedroom with walk-in closet; Walk-in closets; No basement; Has electric fireplace in family room/living room
• Laundry & utility: Laundry room located on the upper level; Washer; Dryer; Tankless water heater; Air-to-air exchanger; Humidifier

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath other listed at $420k. Condition is rated good.

Deal economics

• At list price, monthly cash flow is $-383 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $364k (13.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $319k (24.1% below list).
• Recommended offer: $319k (24.1% below list) — sets the bar for 1% rule.
• Cap rate 5.2% vs local median 4.0% in Otsego — 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 69/100 on livability (#367 in MN) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime A-; Watch: cost of living C-, amenities F, commute F.
• Independent School District 728 (suburban): math 56% / reading 60% proficiency, ranked #37 of 301 in MN (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Otsego Elementary (math 64% / reading 64%, grade B, #157 of 857 statewide, top 19%, 563 students, 21% FRL); Rogers Middle School (math 61% / reading 63%, grade B+, #19 of 258 statewide, top 8%, 979 students, 16% FRL); Rogers Senior High (math 66% / reading 64%, grade B, #28 of 471 statewide, top 6%, 1,740 students, 18% FRL) — zoned schools at 18% FRL track the district average.
• Market conditions: 143 active listings in the ZIP; high-income renter base; 1,260 units permitted in Wright County in 2024 (180 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $13k of value loss. Plan a longer hold.
• Wright County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.

Negotiation context

• It's been on market 33 days — a 3% lower offer ($407k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts; this cycle's ask has dropped $49k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $303k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Recommended offer $318,657 (24.1% 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 33 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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?
6. 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.
7. 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.
8. 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: 0.76% ✗
• Cap rate: 5.20%
• Cash-on-cash: -3.91%
• DSCR: 0.83
• GRM: 11.0

CMA / ARV

• ARV (median comp): $551,875
• List price: $419,715
• Delta: -17.61%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -22.9%
• Equity multiple: 0.21×
• Total profit: $-92,368
• Equity at exit: $62,581

10-year hold

• IRR: -17.3%
• Equity multiple: 0.05×
• Total profit: $-111,661
• Equity at exit: $36,289

Cash invested: $117,520 (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 55301

• Home prices YoY: -14.2%
• Active inventory: 143
• Price-to-rent: 11.0×

Monthly cashflow live

• Estimated rent: $3,187 medium
• Mortgage (P&I): −$2,201
• Tax est. 1.5%: −$525 /mo · $6,296/yr
• Insurance: −$175
• HOA: −$0
• Vacancy / Maint / Mgmt: −$669
• Net cashflow: $-383

Break-even live

Break-even rent $3,672

Max offer price $364,270

Occupancy floor —

Sensitivity live

Price	-10% $-93	-5% $-238	+0% $-383	+5% $-528	+10% $-673
Rent	-10% $-635	-5% $-509	+0% $-383	+5% $-257	+10% $-131
Rate	-1.0pp $-172	-0.5pp $-276	base $-383	+0.5pp $-492	+1.0pp $-603

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: $104,929
• Closing costs: $12,591
• Reserves months: —
• Total cash needed: —

Listing history 28 events

1. 2026-06-21
   days on market $419,715 Active 33 DOM
2. 2026-06-18
   days on market $419,715 Active 30 DOM
3. 2026-06-17
   days on market $419,715 Active 29 DOM
4. 2026-06-16
   pricedays on market $419,715 Active 28 DOM
5. 2026-06-15
   days on market $424,715 Active 27 DOM
6. 2026-06-13
   days on market $424,715 Active 25 DOM

   Show marketing remark (416 chars)

   This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

7. 2026-06-13
   pricedays on market $424,715 Active 24 DOM

   Show marketing remark (416 chars)

   This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

8. 2026-06-09
   days on market $434,715 Active 21 DOM

   Show marketing remark (416 chars)

   This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

9. 2026-06-08
   days on market $434,715 Active 20 DOM
10. 2026-06-07
    days on market $434,715 Active 19 DOM
11. 2026-06-04
    days on market $434,715 Active 16 DOM
12. 2026-06-03
    days on market $434,715 Active 15 DOM
13. 2026-06-02
    pricedays on market $434,715 Active 14 DOM

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

14. 2026-06-01
    days on market $449,715 Active 13 DOM
15. 2026-05-31
    days on market $449,715 Active 12 DOM
16. 2026-05-19
    price $449,715 935-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

17. 2026-05-19
    price $449,715 416-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

18. 2026-05-19
    listed $468,715 Active 935-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

19. 2026-05-13
    historical
20. 2026-05-12
    price $468,715
21. 2026-05-05
    price $454,715
22. 2026-04-14
    price $468,715
23. 2026-04-12
    price $468,715 416-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

24. 2026-04-10
    price $466,715 416-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

25. 2026-03-26
    listed $466,915 Active
26. 2026-03-08
    price $466,915 416-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

27. 2026-03-03
    listed $464,915 Active 416-char remark

    Show marketing remark (416 chars)

    This new two-story home showcases an appealing contemporary design. At the heart of the first floor is the Great Room, which connects in an open-plan layout with the dining room and modern kitchen. A secluded office provides privacy, and a mudroom offers convenience. The second floor hosts a centrally situated loft and four bedrooms including a spacious owner's suite with a luxe bathroom and large walk-in closet.

28. 2026-02-18
    soldstatus $303,245

ⓘ 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: $38,239
• − Mortgage interest: −$23,511
• − Property taxes: −$6,296
• − Insurance: −$2,099
• − Repairs & maintenance: −$3,059
• − Management: −$3,059
• − Depreciation: −$12,210
• Taxable loss: −$11,994
• Est. tax savings @ 24.0%: +$2,879
• After-tax cash flow: $-1,719/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 · 13 photos

Good 80/100 Cosmetic rehab

This home is in good condition with a modern kitchen and bathrooms, hardwood flooring, and a well-maintained exterior. It offers a good investment opportunity with potential for minor updates to enhance its curb appeal and functionality.

Value-add opportunities

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics.
• Both Updating the flooring in the bathrooms — Modern flooring can improve the look and feel of the bathrooms.
• Both Upgrading the kitchen appliances — Newer appliances can increase the home's appeal and functionality.
• Both Adding smart home features — Smart home features can enhance convenience and attract tech-savvy buyers/tenants.
• Both Landscaping improvements — Enhanced landscaping can improve curb appeal and add value to the property.

Renovation cost estimate screening

Value-add ROI direction

• Both Painting the exterior and interior walls — Fresh paint can enhance curb appeal and interior aesthetics. ↑
• Both Updating the flooring in the bathrooms — Modern flooring can improve the look and feel of the bathrooms. ↑
• Both Upgrading the kitchen appliances — Newer appliances can increase the home's appeal and functionality. ↑
• Both Adding smart home features — Smart home features can enhance convenience and attract tech-savvy buyers/tenants. ↑
• Both Landscaping improvements — Enhanced landscaping can improve curb appeal and add value to the property. ↑

ⓘ 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: Independent School District 728
• NCES district ID: 2711370
• Math proficiency: 56% ▼ -15.00%
• Reading proficiency: 60% ▼ -10.00%
• Median HH income: $82,336
• Composite: 52.5/100
• National rank: #1567
• State rank: #37 of 301 in MN

Livability — Otsego

• Score: 69/100
• State rank: #367
• US rank: #8641

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Otsego, MN
• County: Wright County · 79,164 people
• Metro: Minneapolis-St. Paul-Bloomington, MN-WI
• Population (ZIP): 13,482
• Household income: $129,232
• Rent vs Own: 8.6% rent · 91.4% own
• Severe rent burden: 50.0

Population outlook (Wright County) Hauer SSP2

• Today (2025): 142,526 people
• By 2030: 146,915 · +3.1%
• By 2040: 153,625 · +7.8%
• By 2050: 155,416 · +9.0%
• By 2075: 150,352 · +5.5%
• By 2100: 130,631 · -8.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (85%)
• Race & ethnicity: White 85% Black 7% Two or more races 5% Asian 2%
• Common ancestry: Portuguese 10% Romanian 5% Lithuanian 4%
• Foreign-born: 7% · South Korea, China, Canada

Political lean MEDSL · Wright

• 2024 margin: Strong R (+29.4) · D 34.4% · R 63.8% · Other 1.8%
• 2008→2024 swing: -11.9pp toward R · 2008: -17.4pp · 2024: -29.4pp
• All cycles: 2024: R+29.4 2020: R+28.6 2016: R+33.2 2012: R+21.4 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -38.52%
• Current HPI: 233.6299
• Rent YoY: —
• Metro: Minneapolis-St. Paul-Bloomington, MN-WI
• 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

+38.4% since first listed

19 events — show timeline

• 2026-06-16 Price Changed $419,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-06-13 Price Changed $419,715 Zillow
• 2026-06-12 Price Changed $424,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-06-09 Price Changed $429,715 Zillow
• 2026-06-02 Price Changed $434,715 Zillow
• 2026-06-02 Price Changed $434,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-19 Price Changed $449,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-19 Price Changed $449,715 Zillow
• 2026-05-19 Listed $468,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-13 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-12 Price Changed $468,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-05 Price Changed $454,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Price Changed $468,715 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-12 Price Changed $468,715 Zillow
• 2026-04-10 Price Changed $466,715 Zillow
• 2026-03-26 Listed $466,915 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-08 Price Changed $466,915 Zillow
• 2026-03-03 Listed $464,915 Zillow
• 2026-02-18 Sold (Public Records) $303,245 Public Records