7216 155th St W

Apple Valley, MN 55124

$224,900D

2 bd · 2.0 ba · 1,254 sqft · Built 1995 · Townhouse · Active · 50 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,970/mo
• Mortgage (P&I): −$1,179
• Tax + insurance: −$375
• HOA: −$335
• Vac / Maint / Mgmt: −$414
• Net cashflow: $-333/mo
• Annual: $-3,991/yr
• Cap rate: 4.52%
• Cash-on-cash: -6.34%
• DSCR: 0.72
• 1% rule: 0.88%
• Cash to close: $62,972

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $225k. Condition is rated average.
• At list price, monthly cash flow is $-333 ($-4k/yr) — negative.
• To cash-flow at today's rent, offer at most $177k (21.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $197k (12.4% below list).
• It's been on market 50 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $177k (21.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 86/100 on livability (#10 in MN, #379 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: amenities F.
• Rosemount-Apple Valley-Eagan (suburban): math 50% / reading 58% proficiency, ranked #58 of 301 in MN (top 19%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Zoned schools: Cedar Park Elementary Stem School (math 58% / reading 56%, grade C+, #265 of 857 statewide, top 35%, 729 students, 48% FRL); Valley Middle School of Stem (math 30% / reading 47%, grade F, #156 of 258 statewide, top 62%, 1,076 students, 48% FRL); Apple Valley Senior High (math 42% / reading 67%, grade C-, #87 of 471 statewide, top 22%, 1,893 students, 54% FRL) — zoned schools average 50% FRL vs 18% district-wide (32 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+3.3%/yr); 519 active listings in the ZIP; 37 comparable units currently listed for rent nearby; rentals lingering (median 41d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 7 sale attempts since 29y 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 $159k; 41% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Questions for listing agent

• 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?
• It's been on market 50 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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?
• 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.
• 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.

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear and tear visible.
• Minor: Bathroom fixtures — Some signs of wear and tear.
• Minor: Exterior siding — Some discoloration and minor wear visible.
• Minor: Living room carpet — Signs of wear and tear visible.
• Minor: Interior wall paint — Fading and slight discoloration visible.