909 W Lakewood Avenue Site #46

Lake City, MN 55041

$23,800B

3 bd · 1.0 ba · 1,064 sqft · Built 2026 · Manufactured · Active · 148 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $612/mo
• Mortgage (P&I): −$125
• Tax + insurance: −$40
• HOA: −$0
• Vac / Maint / Mgmt: −$129
• Net cashflow: $319/mo
• Annual: $3,829/yr
• Cap rate: 22.38%
• Cash-on-cash: 57.46%
• DSCR: 3.56
• 1% rule: 2.57%
• Cash to close: $6,664

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $24k. Condition is rated good.
• At list price, monthly cash flow is $319 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($612 rent vs $24k).
• It's been on market 148 days — a 12% lower offer ($21k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $21k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $165 of loan paydown is wiped out by about $714 of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#195 in MN, #4,149 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, cost of living A; Watch: amenities F, commute F.
• Lake City Public School District (town): math 50% / reading 50% proficiency, ranked #115 of 301 in MN (top 38%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 20% free/reduced lunch — higher-income household profile.
• Zoned schools: Bluff View Elementary (math 56% / reading 51%, grade C, #357 of 857 statewide, top 42%, 616 students, 41% FRL); Lincoln Secondary (math 42% / reading 48%, grade D-, #187 of 471 statewide, top 40%, 587 students, 34% FRL) — zoned schools average 37% FRL vs 20% district-wide (18 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 109 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 81 units permitted in Wabasha County in 2024 (0 in 5+ unit buildings).
• Wabasha County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 22.4% vs local median 0.4% in Lake City — 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

• It's been on market 148 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.