722 E 3rd St · Fairmont, MN 56031

$120,000

3 bd · 2.0 ba · 1,330 sqft · SingleFamily public records · 15 Days on market

Built 1927 6,577 sqft lot

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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 +21.7/30.0
• ARV discount +7.5/15.0
• DSCR +6.9/10.0
• 1% rule +4.7/10.0
• Schools +4.1/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Amazing find! 3BR/2BA with main floor living! This cheery yellow house has some great updates including, some newer windows, roof, plumbing, vinyl flooring, fresh paint and more! The layout of the main floor includes the living room with built-ins, a large informal dining room that could be split to add an office area or another seating area, the large kitchen with stainless steel appliances that stay, main floor bedroom, one full bath without shower, and 3/4 bath-shower only-with laundry. You will be surprised at all the storage on the main floor! Upstairs are two bedrooms, one is really large with a big walk-in closet, a little room that might be a good spot for a 1/2 bath, and a good sized landing area. The upstairs needs a bit more love but the wallpaper was all taken down and has been freshly painted on the walls and ceiling. The basement is unfinished with a small cellar area. Outside is a one car detached garage with covered patio for grilling. Shared driveway. Steel siding.

Key facts

• 6,577 sq ft lot
• Garage
• Built 1927

Property features AI

Exterior

• Parking: Gravel parking; Shared driveway; 1-car garage; 1-car carport
• Utilities: City water (connected); City sewer (connected); Natural gas
• Home design: Residential property; Two levels; Above-grade finished area approximately 1,330; Main level finished area approximately 1,064; Other structures: garage(s)
• Construction: Block foundation; Roof age 8 years or less
• Exterior features: Light tree coverage; No pool; No fencing

Interior

• Kitchen: Range; Refrigerator; Stainless steel appliances; Kitchen window
• Bedrooms: 3 bedrooms (one on main level, two on upper level); Bedroom sizes include: 14x10 (main), 12x15 (upper), 12x10 (upper)
• Flooring: Hardwood floors
• Bathrooms: Main floor full bath; Main floor 3/4 bath; Upper level half bath; Bathroom sizes include: 8x9 (main), 8x6 (main), 6x5 (upper)
• Heating & cooling: Forced air heating; Window unit(s) for cooling
• Interior features: Main floor bedroom; Main floor laundry; Hardwood floors; Kitchen window; Walk-in closet; Unfinished storage area (27x37); Block basement with sump pump (unfinished)
• Laundry & utility: Washer; Dryer; Main level laundry

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $120k.

Deal economics

• At list price, monthly cash flow is $184 ($2k/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 $116k (3.0% below list).
• Recommended offer: $116k (3.0% below list) — sets the bar for 1% rule.
• Cap rate 8.1% vs local median 3.4% in Fairmont — 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 68/100 on livability (#407 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, amenities F.
• Fairmont Area School District (town): math 45% / reading 51% proficiency, ranked #148 of 301 in MN (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 94 active listings in the ZIP; 19 units permitted in Martin County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Martin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 15 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 11y 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.
• Current owner paid $72k; list at $120k implies a 66% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1927 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $116,389 (3.0% below list)

Questions for the listing agent

1. Built in 1927 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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: 0.97% ✗
• Cap rate: 8.13%
• Cash-on-cash: 6.55%
• DSCR: 1.29
• GRM: 8.6

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: -6.3%
• Equity multiple: 0.77×
• Total profit: $-7,797
• Equity at exit: $17,892

10-year hold

• IRR: 3.3%
• Equity multiple: 1.24×
• Total profit: $8,099
• Equity at exit: $10,375

Cash invested: $33,600 (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 56031

• Active inventory: 94
• Price-to-rent: 8.6×

Monthly cashflow live

• Estimated rent: $1,164 medium
• Mortgage (P&I): −$629
• Tax from tax record: −$57 /mo · $680/yr
• Insurance: −$50
• HOA: −$0
• Vacancy / Maint / Mgmt: −$244
• Net cashflow: $184

Break-even live

Break-even rent $932

Max offer price $120,000

Occupancy floor 79%

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: $30,000
• Closing costs: $3,600
• Reserves months: —
• Total cash needed: —

Listing history 10 events

1. 2026-04-30
   status Pending
2. 2026-04-21
   historical Contingent - Inspection
3. 2026-04-15
   listed $120,000 Active
4. 2024-01-19
   soldstatus $72,500
5. 2024-01-17
   soldstatus $72,500 Sold 996-char remark

   Show marketing remark (996 chars)

   Amazing find! 3BR/2BA with main floor living! This cheery yellow house has some great updates including, some newer windows, roof, plumbing, vinyl flooring, fresh paint and more! The layout of the main floor includes the living room with built-ins, a large informal dining room that could be split to add an office area or another seating area, the large kitchen with stainless steel appliances that stay, main floor bedroom, one full bath without shower, and 3/4 bath-shower only-with laundry. You will be surprised at all the storage on the main floor! Upstairs are two bedrooms, one is really large with a big walk-in closet, a little room that might be a good spot for a 1/2 bath, and a good sized landing area. The upstairs needs a bit more love but the wallpaper was all taken down and has been freshly painted on the walls and ceiling. The basement is unfinished with a small cellar area. Outside is a one car detached garage with covered patio for grilling. Shared driveway. Steel siding.

6. 2023-12-20
   status Pending 996-char remark

   Show marketing remark (996 chars)

   Amazing find! 3BR/2BA with main floor living! This cheery yellow house has some great updates including, some newer windows, roof, plumbing, vinyl flooring, fresh paint and more! The layout of the main floor includes the living room with built-ins, a large informal dining room that could be split to add an office area or another seating area, the large kitchen with stainless steel appliances that stay, main floor bedroom, one full bath without shower, and 3/4 bath-shower only-with laundry. You will be surprised at all the storage on the main floor! Upstairs are two bedrooms, one is really large with a big walk-in closet, a little room that might be a good spot for a 1/2 bath, and a good sized landing area. The upstairs needs a bit more love but the wallpaper was all taken down and has been freshly painted on the walls and ceiling. The basement is unfinished with a small cellar area. Outside is a one car detached garage with covered patio for grilling. Shared driveway. Steel siding.

7. 2023-12-14
   listed $74,900 Active 996-char remark

   Show marketing remark (996 chars)

   Amazing find! 3BR/2BA with main floor living! This cheery yellow house has some great updates including, some newer windows, roof, plumbing, vinyl flooring, fresh paint and more! The layout of the main floor includes the living room with built-ins, a large informal dining room that could be split to add an office area or another seating area, the large kitchen with stainless steel appliances that stay, main floor bedroom, one full bath without shower, and 3/4 bath-shower only-with laundry. You will be surprised at all the storage on the main floor! Upstairs are two bedrooms, one is really large with a big walk-in closet, a little room that might be a good spot for a 1/2 bath, and a good sized landing area. The upstairs needs a bit more love but the wallpaper was all taken down and has been freshly painted on the walls and ceiling. The basement is unfinished with a small cellar area. Outside is a one car detached garage with covered patio for grilling. Shared driveway. Steel siding.

8. 2019-02-02
   historical 423-char remark

   Show marketing remark (423 chars)

   Great potential for this 2600 square foot home. The spacious main floor includes a large living room-dining room area, one bedroom and both bathrooms plus the laundry. The upper level has two bedrooms. One of bedrooms has a walk-in closet. Both the water heater and furnace were new in 2005. There are newer windows throughout. The exterior has steel siding. There is a shared driveway. Call for your showing today.

9. 2016-06-13
   soldstatus $25,000 423-char remark

   Show marketing remark (423 chars)

   Great potential for this 2600 square foot home. The spacious main floor includes a large living room-dining room area, one bedroom and both bathrooms plus the laundry. The upper level has two bedrooms. One of bedrooms has a walk-in closet. Both the water heater and furnace were new in 2005. There are newer windows throughout. The exterior has steel siding. There is a shared driveway. Call for your showing today.

10. 2015-11-11
    listed $28,900 423-char remark

    Show marketing remark (423 chars)

    Great potential for this 2600 square foot home. The spacious main floor includes a large living room-dining room area, one bedroom and both bathrooms plus the laundry. The upper level has two bedrooms. One of bedrooms has a walk-in closet. Both the water heater and furnace were new in 2005. There are newer windows throughout. The exterior has steel siding. There is a shared driveway. Call for your showing today.

ⓘ 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: $680 · $57/mo
• Projected year-2 tax: $1,012 · $84/mo
• Expected delta: +$332/yr (+$28/mo · 48.8%)

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

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X · 73% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,967
• − Mortgage interest: −$6,722
• − Property taxes: −$680
• − Insurance: −$600
• − Repairs & maintenance: −$1,117
• − Management: −$1,117
• − Depreciation: −$3,491
• Taxable income: $239
• Est. tax owed @ 24.0%: −$57
• After-tax cash flow: $2,145/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: Fairmont Area School District
• NCES district ID: 2700124
• Math proficiency: 45% ▼ -13.00%
• Reading proficiency: 51% ▼ -7.00%
• Median HH income: $46,280
• Composite: 40.76/100
• National rank: #3648
• State rank: #148 of 301 in MN

Livability — Fairmont

• Score: 68/100
• State rank: #407
• US rank: #9480

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Fairmont, MN
• City population: 11,800
• Population (ZIP): 11,800

Population outlook (Martin County) Hauer SSP2

• Today (2025): 18,583 people
• By 2030: 17,814 · -4.1%
• By 2040: 16,312 · -12.2%
• By 2050: 15,021 · -19.2%
• By 2075: 13,025 · -29.9%
• By 2100: 11,311 · -39.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (87%)
• Race & ethnicity: White 87% Hispanic / Latino 8% Two or more races 3%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 11% Romanian 6% Italian 2%
• Foreign-born: 3% · Canada, China
• Languages at home: 93% English-only · Spanish 5%

Political lean MEDSL · Martin

• 2024 margin: Solid R (+39.7) · D 29.5% · R 69.1% · Other 1.4%
• 2008→2024 swing: -24.4pp toward R · 2008: -15.2pp · 2024: -39.7pp
• All cycles: 2024: R+39.7 2020: R+37.9 2016: R+41.4 2012: R+23.8 2008: R+15.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -143.34%
• Current HPI: 191.514
• 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

+315.2% since first listed

10 events — show timeline

• 2026-04-30 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-21 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-15 Listed $120,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-01-19 Sold (Public Records) $72,500 Public Records
• 2024-01-17 Sold (MLS) $72,500 NORTHSTARMLS as Distributed by MLS Grid
• 2023-12-20 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2023-12-14 Listed $74,900 NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-06-13 Sold (MLS) $25,000 NORTHSTARMLS as Distributed by MLS Grid
• 2015-11-11 Listed $28,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-0.5%/yr

Latest (2025): $680 · -4.2% YoY. Source: county tax records.