221 1st St · Stephen, MN 56757

$137,000

3 bd · 2.0 ba · 1,232 sqft · SingleFamily public records · 82 Days on market

Built 1965 591 sqft lot $111/sqft · 26% below area Est $184k · 26% 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 +16.8/30.0
• ARV discount +15.0/15.0
• DSCR +5.2/10.0
• Schools +5.1/10.0
• Appreciation +5.0/10.0
• 1% rule +3.7/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Welcome to this 3-bedroom, 2-bathroom home in Stephen, MN offering nearly 2,000 square feet of comfortable living space and endless potential for personalization. Built in 1965, this well-maintained home blends solid construction with functional living areas designed for everyday comfort. Step inside and you'll find a practical main-level layout featuring three bedrooms and a bright living space ready for your personal touch. The home maintains its original character, giving buyers the opportunity to update and customize while building equity over time. One of the standout features is the inviting sunroom overlooking the backyard. This space is perfect for morning coffee, relaxing with a book, or enjoying peaceful views year-round. It adds a unique charm that's hard to find at this price point. The lower level expands your living options with a spacious family room and dedicated laundry area, creating the ideal setup for movie nights, hobbies, or additional gathering space. Outside, you'll appreciate the large backyard, offering plenty of room for entertaining, gardening, or simply enjoying the outdoors. Whether you envision summer barbecues, a play area, or a future patio, this yard delivers the space to make it happen. Additional features include a 2-stall attached garage for convenience and storage. Located in the quiet community of Stephen, this home offers the best of small-town living while remaining within reach of Warren and Grand Forks.

Key facts

• Large backyard
• Spacious family room
• 2 garage spots

Tags

• SUNROOM OVERLOOKING BACKYARD
• SPACIOUS FAMILY ROOM
• DEDICATED LAUNDRY AREA
• LARGE BACKYARD

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $137k.

Deal economics

• At list price, monthly cash flow is $88 ($1k/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 $119k (12.9% below list).
• Recommended offer: $119k (12.9% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 74/100 on livability (#223 in MN, #4,796 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime C-, schools D+, amenities F.
• Stephen-Argyle Central Schools (rural): math 55% / reading 60% proficiency, ranked #170 of 467 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 2 active listings in the ZIP; 9 units permitted in Marshall County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $5k of equity ($947 loan paydown + $4k appreciation (3.0% local appreciation)).
• Marshall County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 82 days — a 6% lower offer ($129k) is reasonable based on typical stale-listing flexibility.

Recommended offer $119,383 (12.9% below list)

Questions for the listing agent

1. It's been on market 82 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
2. Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
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: 0.87% ✗
• Cap rate: 7.07%
• Cash-on-cash: 2.76%
• DSCR: 1.12
• GRM: 9.6

CMA / ARV

• ARV (median comp): $184,312
• List price: $137,000
• Delta: -25.67%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
836 5th ST St W	0.66mi	3/2.0	1,328 (+8%)	21mo	$180,000	$136	38

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: 10.1%
• Equity multiple: 1.58×
• Total profit: $22,087
• Equity at exit: $61,601

10-year hold

• IRR: 12.4%
• Equity multiple: 2.84×
• Total profit: $70,717
• Equity at exit: $94,935

Cash invested: $38,360 (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 56757

• Active inventory: 2
• Price-to-rent: 9.6×

Monthly cashflow live

• Estimated rent: $1,194 medium
• Mortgage (P&I): −$718
• Tax from tax record: −$79 /mo · $952/yr
• Insurance: −$57
• HOA: −$0
• Vacancy / Maint / Mgmt: −$251
• Net cashflow: $88

Break-even live

Break-even rent $1,082

Max offer price $137,000

Occupancy floor 88%

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: $34,250
• Closing costs: $4,110
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-18
   days on market $137,000 Active 82 DOM
2. 2026-06-17
   days on market $137,000 Active 81 DOM
3. 2026-06-16
   days on market $137,000 Active 80 DOM
4. 2026-06-15
   days on market $137,000 Active 79 DOM
5. 2026-06-13
   days on market $137,000 Active 77 DOM
6. 2026-06-12
   days on market $137,000 Active 76 DOM
7. 2026-06-09
   days on market $137,000 Active 73 DOM
8. 2026-06-08
   days on market $137,000 Active 72 DOM
9. 2026-06-07
   days on market $137,000 Active 71 DOM
10. 2026-06-05
    days on market $137,000 Active 69 DOM
11. 2026-06-04
    days on market $137,000 Active 67 DOM
12. 2026-06-02
    days on market $137,000 Active 66 DOM
13. 2026-06-01
    days on market $137,000 Active 65 DOM
14. 2026-05-31
    days on market $137,000 Active 64 DOM
15. 2026-05-31
    days on market $137,000 Active 63 DOM
16. 2026-03-28
    listed $137,000 Active 1470-char remark

    Show marketing remark (1470 chars)

    Welcome to this 3-bedroom, 2-bathroom home in Stephen, MN offering nearly 2,000 square feet of comfortable living space and endless potential for personalization. Built in 1965, this well-maintained home blends solid construction with functional living areas designed for everyday comfort. Step inside and you'll find a practical main-level layout featuring three bedrooms and a bright living space ready for your personal touch. The home maintains its original character, giving buyers the opportunity to update and customize while building equity over time. One of the standout features is the inviting sunroom overlooking the backyard. This space is perfect for morning coffee, relaxing with a book, or enjoying peaceful views year-round. It adds a unique charm that's hard to find at this price point. The lower level expands your living options with a spacious family room and dedicated laundry area, creating the ideal setup for movie nights, hobbies, or additional gathering space. Outside, you'll appreciate the large backyard, offering plenty of room for entertaining, gardening, or simply enjoying the outdoors. Whether you envision summer barbecues, a play area, or a future patio, this yard delivers the space to make it happen. Additional features include a 2-stall attached garage for convenience and storage. Located in the quiet community of Stephen, this home offers the best of small-town living while remaining within reach of Warren and Grand Forks.

ⓘ 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: $952 · $79/mo
• Projected year-2 tax: $1,243 · $104/mo
• Expected delta: +$291/yr (+$24/mo · 30.6%)

ⓘ 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 (shaded) · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥95°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 4 unhealthy d/yr today · 4 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,326
• − Mortgage interest: −$7,674
• − Property taxes: −$952
• − Insurance: −$685
• − Repairs & maintenance: −$1,146
• − Management: −$1,146
• − Depreciation: −$3,985
• Taxable loss: −$1,263
• Est. tax savings @ 24.0%: +$303
• After-tax cash flow: $1,362/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: Stephen-Argyle Central Schools
• NCES district ID: 2700127
• Math proficiency: 55% ▲ 5.00%
• Reading proficiency: 60% ▬ 0.00%
• Median HH income: $54,566
• Composite: 51.14/100
• National rank: #3775
• State rank: #170 of 467 in MN

Livability — Stephen

• Score: 74/100
• State rank: #223
• US rank: #4796

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Stephen, MN
• Population (ZIP): 845

Population outlook (Marshall County) Hauer SSP2

• Today (2025): 9,191 people
• By 2030: 9,078 · -1.2%
• By 2040: 8,815 · -4.1%
• By 2050: 8,464 · -7.9%
• By 2075: 8,156 · -11.3%
• By 2100: 7,171 · -22.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 9% Two or more races 8%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Portuguese 32% Romanian 16% Lithuanian 5%
• Foreign-born: 5% · Canada
• Languages at home: 87% English-only · Spanish 11% German/W. Germanic 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Marshall

• 2024 margin: Solid R (+51.7) · D 23.4% · R 75.1% · Other 1.4%
• 2008→2024 swing: -52.2pp toward R · 2008: 0.6pp · 2024: -51.7pp
• All cycles: 2024: R+51.7 2020: R+47.5 2016: R+41.4 2012: R+12.1 2008: D+0.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• 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

1 event — show timeline

• 2026-03-28 Listed $137,000 GFAAR

Property tax history

-0.1%/yr

Latest (2025): $952 · -4.4% YoY. Source: county tax records.