513 N Main St

Sanborn, MN 56083

$67,000B+

3 bd · 2.0 ba · 1,540 sqft · Built 1992 · SingleFamily · Pending · 8 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,266/mo
• Mortgage (P&I): −$351
• Tax + insurance: −$77
• HOA: −$0
• Vac / Maint / Mgmt: −$266
• Net cashflow: $572/mo
• Annual: $6,864/yr
• Cap rate: 16.54%
• Cash-on-cash: 36.59%
• DSCR: 2.63
• 1% rule: 1.89%
• Cash to close: $18,760

Investor read

• This is a 3-bed/2.0-bath single-family listed at $67k.
• At list price, monthly cash flow is $572 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $67k).
• Only 8 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($463 loan paydown + $3k appreciation (3.9% local appreciation)).
• Location reads 60/100 on livability (#779 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: employment D+, health & safety D+, crime D.
• Red Rock Central School District (rural): math 63% / reading 69% proficiency, ranked #86 of 467 in MN (top 18%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 6 active listings in the ZIP; 25 units permitted in Redwood County in 2024 (0 in 5+ unit buildings).
• Redwood County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 2y 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 $50k; 34% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• 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.