218 1st St NE · Clara City, MN 56222

$199,000

3 bd · 2.0 ba · 1,716 sqft · SingleFamily · 1 Days on market

Built 1935 6,969 sqft lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.7/10.0
• ARV discount +7.5/15.0
• Schools +3.8/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +1.2/10.0

Listing remarks MLS

This is a nice, well taken care of home with main floor bedroom, bathroom and attached garage. The house was remodeled in the 1980's with new windows, kitchen cabinets and completely sheet rocked. The water softner was new in 2011 with central air and furnace being replaced in 2012. The home has maintenance free steel siding. The new shingles were put on approximately in 2008. 1/2 of the North adjoining empty lot is included with this property. This house is move in ready and is very close to being maintenance free.

Key facts

• Unfinished basement
• Dining area
• Mudroom

Tags

• MUDROOM
• KITCHEN WITH LOADS OF CABINETS
• DINING AREA
• SPACIOUS LIVING ROOM
• PRIVATE ACCESS TO FULL BATH
• UNFINISHED BASEMENT

Property features AI

Exterior

• Parking: Attached garage, 2-car (garage dimensions approximately 24 x 30)
• Utilities: City water connected; City sewer connected; Natural gas fuel; Electric service with circuit breakers
• Home design: Residential property; One and one-half levels; Main floor primary bedroom; Has additional parcels
• Construction: Block construction; Block and poured concrete foundation (foundation dimensions approx. 50 x 24); Asphalt roof (older than 8 years)
• Exterior features: Front porch; Medium tree coverage; City street frontage with curbs and sidewalks; Publicly maintained road

Interior

• Kitchen: Dishwasher; Range; Refrigerator; Stainless steel appliances; Eat-in kitchen with breakfast bar / kitchen-dining area
• Bedrooms: 3 bedrooms (primary on main floor; two upstairs bedrooms)
• Bathrooms: 1 full bathroom on the main floor; 1 half bathroom in the basement
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Ceiling fans; Kitchen window; Main floor primary bedroom; Front porch
• Laundry & utility: Washer and dryer; Laundry room in the basement; Utility room

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $199k.

Deal economics

• At list price, monthly cash flow is $837 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $199k).

Location & tenants

• Location reads 73/100 on livability (#244 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Maccray School District (rural): math 41% / reading 46% proficiency, ranked #188 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 8 active listings in the ZIP; 13 units permitted in Chippewa County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Chippewa County population projected at -12% 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 $56k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 3 sale attempts since 13y 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 $110k; list at $199k implies a 81% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $199,000

Questions for the listing agent

1. Built in 1935 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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.
4. 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.
5. 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.

Investment metrics

• 1% rule: 1.37% ✓
• Cap rate: 11.34%
• Cash-on-cash: 18.02%
• DSCR: 1.80
• GRM: 6.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 9.6%
• Equity multiple: 1.38×
• Total profit: $21,046
• Equity at exit: $29,672

10-year hold

• IRR: 18.7%
• Equity multiple: 2.56×
• Total profit: $86,951
• Equity at exit: $17,206

Cash invested: $55,720 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 46 Balanced
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City: — inherits STATE

2024 reforms strengthened tenant protections; ramsey/hennepin courts paced moderate to slow.

Methodology + full state rankings →

ZIP-level market 56222

• Home prices YoY: -3.3%
• Active inventory: 8
• Price-to-rent: 6.1×

Monthly cashflow live

• Estimated rent: $2,717 medium
• Mortgage (P&I): −$1,044
• Tax from tax record: −$183 /mo · $2,194/yr
• Insurance: −$83
• HOA: −$0
• Vacancy / Maint / Mgmt: −$570
• Net cashflow: $837

Break-even live

Break-even rent $1,657

Max offer price $199,000

Occupancy floor 64%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $49,750
• Closing costs: $5,970
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-06-18
   remarks 699-char remark
2. 2026-06-18
   listed $199,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MN · Partial reset (capped growth)

• Current annual tax: $2,194 · $183/mo
• Projected year-2 tax: $2,211 · $184/mo
• Expected delta: +$17/yr (+$1/mo · 0.8%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 13 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $32,598
• − Mortgage interest: −$11,147
• − Property taxes: −$2,194
• − Insurance: −$995
• − Repairs & maintenance: −$2,608
• − Management: −$2,608
• − Depreciation: −$5,789
• Taxable income: $7,258
• Est. tax owed @ 24.0%: −$1,742
• After-tax cash flow: $8,299/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Maccray School District
• NCES district ID: 2700091
• Math proficiency: 41% ▼ -10.00%
• Reading proficiency: 46% ▼ -7.00%
• Median HH income: $52,637
• Composite: 37.64/100
• National rank: #4374
• State rank: #188 of 301 in MN

Livability — Clara City

• Score: 73/100
• State rank: #244
• US rank: #5251

Category grades

Amenities F Commute F Cost of living A+ Crime A+ Employment D- Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Clara City, MN
• Population (ZIP): 2,012

Population outlook (Chippewa County) Hauer SSP2

• Today (2025): 11,593 people
• By 2030: 11,294 · -2.6%
• By 2040: 10,715 · -7.6%
• By 2050: 10,229 · -11.8%
• By 2075: 9,600 · -17.2%
• By 2100: 8,500 · -26.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 9% Two or more races 4% Native American 2%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Portuguese 25% Iranian 12% Lithuanian 2%
• Foreign-born: 4% · Canada
• Languages at home: 94% English-only · Spanish 5%

Political lean MEDSL · Chippewa

• 2024 margin: Solid R (+34.1) · D 32.2% · R 66.3% · Other 1.6%
• 2008→2024 swing: -40.0pp toward R · 2008: 5.9pp · 2024: -34.1pp
• All cycles: 2024: R+34.1 2020: R+30.6 2016: R+28.9 2012: D+1.9 2008: D+5.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -7.61%
• Current HPI: 220.8934
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.41%
• F500 in state: 34

Industry mix (Fortune 500 HQ in MN)

Industry	F500 HQs	Revenue
▸Healthcare	2	$407B
▸Retail	2	$150B
▸Consumer Goods	2	$32B
▸Industrial Machinery	2	$6B
▸Agriculture	1	$40B
▸Healthcare / Medical Devices	1	$32B

Price history

+188.4% since first listed

9 events — show timeline

• 2026-06-18 Listed $199,000 NORTHSTARMLS as Distributed by MLS Grid
• 2021-08-04 Sold (Public Records) $110,000 Public Records
• 2020-09-22 Sold (Public Records) $85,000 Public Records
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2013-11-15 Sold (MLS) $64,650 NORTHSTARMLS as Distributed by MLS Grid
• 2013-11-15 Sold (MLS) $64,650 NORTHSTARMLS as Distributed by MLS Grid
• 2013-11-13 Sold (Public Records) $64,648 Public Records
• 2013-02-23 Listed $69,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-02-23 Listed $69,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.8%/yr

Latest (2026): $2,194 · +6.0% YoY. Source: county tax records.