7364 Lambert Ave NE

Otsego, MN 55301

$459,000D

5 bd · 2.0 ba · 3,410 sqft · Built 2004 · SingleFamily · Active · 34 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,204/mo
• Mortgage (P&I): −$2,407
• Tax + insurance: −$609
• HOA: −$0
• Vac / Maint / Mgmt: −$673
• Net cashflow: $-485/mo
• Annual: $-5,822/yr
• Cap rate: 5.02%
• Cash-on-cash: -4.53%
• DSCR: 0.80
• 1% rule: 0.70%
• Cash to close: $128,520

Investor read

• This is a 5-bed/2.0-bath single-family listed at $459k.
• At list price, monthly cash flow is $-485 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $373k (18.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $320k (30.2% below list).
• It's been on market 34 days — a 3% lower offer ($445k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $320k (30.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• 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.
• Market conditions: 141 active listings in the ZIP; high-income renter base; 1,260 units permitted in Wright County in 2024 (180 in 5+ unit buildings).
• Wright County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 22y ago; this cycle's ask has dropped $41k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $175k; list at $459k implies a 162% gain — meaningful room to come down on a strong offer.
• Cap rate 5.0% vs local median 4.0% in Otsego — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 34 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
• 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.
• 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.