932 Ledgestone Dr

Mahtomedi, MN 55115

$269,000D+

2 bd · 2.5 ba · 1,924 sqft · Built 2007 · Townhouse · Active · 44 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,746/mo
• Mortgage (P&I): −$1,411
• Tax + insurance: −$370
• HOA: −$385
• Vac / Maint / Mgmt: −$577
• Net cashflow: $4/mo
• Annual: $42/yr
• Cap rate: 6.31%
• Cash-on-cash: 0.06%
• DSCR: 1.00
• 1% rule: 1.02%
• Cash to close: $75,320

Investor read

• This is a 2-bed/2.5-bath townhouse listed at $269k.
• At list price, monthly cash flow is $4 ($42/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $269k).
• It's been on market 44 days — a 3% lower offer ($261k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $261k (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 78/100 on livability (#116 in MN, #2,658 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: commute D+, amenities F, cost of living F.
• Mahtomedi Public School District (suburban): math 67% / reading 68% proficiency, ranked #12 of 301 in MN (top 4%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 7% free/reduced lunch — higher-income household profile.
• Zoned schools: O.H. Anderson Elementary (math 75% / reading 69%, grade A-, #50 of 857 statewide, top 7%, 651 students, 16% FRL); Mahtomedi Middle (math 60% / reading 63%, grade B+, #23 of 258 statewide, top 9%, 765 students, 14% FRL); Mahtomedi Senior High (math 67% / reading 81%, grade B+, #10 of 471 statewide, top 2%, 1,142 students, 14% FRL).
• Market conditions: 58 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 1,405 units permitted in Washington County in 2024 (121 in 5+ unit buildings).
• Washington County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.3% vs local median 1.9% in Mahtomedi — 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 44 days. Have you received any prior offers? Is the seller open to a 3% 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.
• 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.