310 10th Ave NW

Byron, MN 55920

$232,900D

3 bd · 1.5 ba · 1,488 sqft · Built 2002 · Townhouse · Active · 31 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,108/mo
• Mortgage (P&I): −$1,221
• Tax + insurance: −$354
• HOA: −$163
• Vac / Maint / Mgmt: −$443
• Net cashflow: $-73/mo
• Annual: $-874/yr
• Cap rate: 5.92%
• Cash-on-cash: -1.34%
• DSCR: 0.94
• 1% rule: 0.90%
• Cash to close: $65,212

Investor read

• This is a 3-bed/1.5-bath townhouse listed at $233k.
• At list price, monthly cash flow is $-73 ($-874/yr) — negative.
• To cash-flow at today's rent, offer at most $220k (5.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $211k (9.5% below list).
• It's been on market 31 days — a 3% lower offer ($226k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $211k (9.5% below list) — sets the bar for 1% rule.
• 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 83/100 on livability (#30 in MN, #956 nationally) — a professional / high-income tenant draw. Strengths: commute A+, employment A+, housing A+; Watch: amenities F, health & safety D-.
• Byron Public School District (town): math 60% / reading 63% proficiency, ranked #24 of 301 in MN (top 8%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Byron Intermediate School (math 76% / reading 66%, grade A-, #62 of 857 statewide, top 8%, 553 students, 14% FRL); Byron Middle School (math 53% / reading 58%, grade B-, #43 of 258 statewide, top 17%, 543 students, 15% FRL); Byron Senior High School (math 32% / reading 72%, grade D+, #111 of 471 statewide, top 26%, 664 students, 14% FRL) — zoned schools at 15% FRL track the district average.
• Market conditions: 161 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 9 sale attempts since 21y 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.
• Cap rate 5.9% vs local median 2.5% in Byron — 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.

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 31 days. Have you received any prior offers? Is the seller open to a 10% 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 A-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.