516 W Minnesota Ave · Mahnomen, MN 56557

$45,000

1 bd · 1.0 ba · 780 sqft · Other · 74 Days on market

Built 1940 0.32 ac lot ↓ 9% since listing

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +8.1/10.0
• ARV discount +7.5/15.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.0/10.0

Listing remarks

This 1-bedroom, 1-bath rambler sits on a spacious lot and offers a great opportunity for buyers looking to add value through improvements. The property provides a simple layout and manageable size, making it a practical option for those interested in renovation projects. With its single-level design and larger lot, the property offers flexibility for a variety of potential updates and future improvements. The home also presents the potential to be converted into a 2-bedroom by adding a proper egress window to an additional room, creating added functionality and value. Whether you are looking for a project property, a potential rental, or a home where you can build equity through updates, th

Key facts

• Spacious lot
• Potential rental
• Local amenities

Tags

• SPACIOUS LOT
• SINGLE-LEVEL DESIGN
• LOCAL AMENITIES
• POTENTIAL RENTAL
• ROOM FOR IMPROVEMENTS

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath other listed at $45k.

Deal economics

• At list price, monthly cash flow is $340 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($829 rent vs $45k).
• Recommended offer: $42k (6.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 70/100 on livability (#348 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: schools D, amenities F, commute F.
• Mahnomen Public School District (rural): math 21% / reading 26% proficiency, ranked #286 of 301 in MN (top 95%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 68% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 13 active listings in the ZIP.

Forward outlook

• In year one you build about $3k of equity ($311 loan paydown + $3k appreciation (6.2% local appreciation)).
• Mahnomen County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (6.2% appreciation + 3.0% rent growth), your $13k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 10, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 74 days — a 6% lower offer ($42k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1940 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $42,300 (6.0% below list)

Questions for the listing agent

1. It's been on market 74 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1940 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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.
7. 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.
8. 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: 1.84% ✓
• Cap rate: 15.35%
• Cash-on-cash: 32.34%
• DSCR: 2.44
• GRM: 4.5

CMA / ARV

No comps found within radius.

Projected returns pro-forma

6.24% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 43.3%
• Equity multiple: 3.80×
• Total profit: $35,278
• Equity at exit: $28,970

10-year hold

• IRR: 40.2%
• Equity multiple: 7.88×
• Total profit: $86,700
• Equity at exit: $53,134

Cash invested: $12,600 (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 56557

• Home prices YoY: 4.3%
• Active inventory: 13
• Price-to-rent: 4.5×

Monthly cashflow live

• Estimated rent: $829 medium
• Mortgage (P&I): −$236
• Tax from tax record: −$60 /mo · $726/yr
• Insurance: −$19
• HOA: −$0
• Vacancy / Maint / Mgmt: −$174
• Net cashflow: $340

Break-even live

Break-even rent $399

Max offer price $45,000

Occupancy floor 54%

Sensitivity live

Price	-10% $365	-5% $352	+0% $340	+5% $327	+10% $314
Rent	-10% $274	-5% $307	+0% $340	+5% $372	+10% $405
Rate	-1.0pp $362	-0.5pp $351	base $340	+0.5pp $328	+1.0pp $316

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: $11,250
• Closing costs: $1,350
• Reserves months: —
• Total cash needed: —

Listing history 20 events

1. 2026-06-21
   days on market $45,000 Active 74 DOM
2. 2026-06-18
   days on market $45,000 Active 72 DOM
3. 2026-06-17
   days on market $45,000 Active 71 DOM
4. 2026-06-16
   days on market $45,000 Active 70 DOM
5. 2026-06-15
   days on market $45,000 Active 69 DOM
6. 2026-06-13
   days on market $45,000 Active 67 DOM
7. 2026-06-12
   days on market $45,000 Active 66 DOM
8. 2026-06-09
   days on market $45,000 Active 63 DOM
9. 2026-06-08
   days on market $45,000 Active 62 DOM
10. 2026-06-07
    days on market $45,000 Active 61 DOM
11. 2026-06-05
    days on market $45,000 Active 59 DOM
12. 2026-06-04
    days on market $45,000 Active 57 DOM
13. 2026-06-02
    days on market $45,000 Active 56 DOM
14. 2026-06-01
    days on market $45,000 Active 55 DOM
15. 2026-05-31
    days on market $45,000 Active 54 DOM
16. 2026-05-31
    days on market $45,000 Active 53 DOM
17. 2026-04-28
    status Pending
18. 2026-04-14
    historical Contingent - Inspection
19. 2026-03-26
    price $45,000
20. 2026-03-10
    listed $49,500 Active

ⓘ 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: $726 · $60/mo
• Projected year-2 tax: $726 · $60/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 3/10 Moderate FEMA zone X (unshaded) · 20% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥96°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $9,947
• − Mortgage interest: −$2,521
• − Property taxes: −$726
• − Insurance: −$225
• − Repairs & maintenance: −$796
• − Management: −$796
• − Depreciation: −$1,309
• Taxable income: $3,575
• Est. tax owed @ 24.0%: −$858
• After-tax cash flow: $3,217/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: Mahnomen Public School District
• NCES district ID: 2718660
• Math proficiency: 21% ▼ -11.00%
• Reading proficiency: 26% ▼ -7.00%
• Median HH income: $38,299
• Composite: 19.69/100
• National rank: #8730
• State rank: #286 of 301 in MN

Livability — Mahnomen

• Score: 70/100
• State rank: #348
• US rank: #8055

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Mahnomen, MN
• Population (ZIP): 2,797

Population outlook (Mahnomen County) Hauer SSP2

• Today (2025): 5,233 people
• By 2030: 5,133 · -1.9%
• By 2040: 4,967 · -5.1%
• By 2050: 4,822 · -7.9%
• By 2075: 4,539 · -13.3%
• By 2100: 4,317 · -17.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.80)
• Race & ethnicity: White 45% Native American 36% Two or more races 18% Hispanic / Latino 5%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 14% Lithuanian 7% Iranian 2%
• Foreign-born: 1% · Canada
• Languages at home: 91% English-only · Spanish 1% Other Asian/Pacific 1%

Political lean MEDSL · Mahnomen

• 2024 margin: Lean R (+8.7) · D 44.8% · R 53.5% · Other 1.6%
• 2008→2024 swing: -34.0pp toward R · 2008: 25.3pp · 2024: -8.7pp
• All cycles: 2024: R+8.7 2020: R+1.3 2016: R+2.9 2012: D+18.6 2008: D+25.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 6.24%
• Current HPI: 151.1959
• 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

-9.1% since first listed

4 events — show timeline

• 2026-04-28 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-14 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-26 Price Changed $45,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-10 Listed $49,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+6.0%/yr

Latest (2021): $726 · -22.9% YoY. Source: county tax records.