305 Harding St S · Karlstad, MN 56732

$87,000

3 bd · 1.0 ba · 799 sqft · SingleFamily public records · 63 Days on market

Built 1930 0.29 ac 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 +23.3/30.0
• Appreciation +8.2/10.0
• DSCR +7.5/10.0
• ARV discount +7.5/15.0
• Schools +5.4/10.0
• 1% rule +5.3/10.0
• Livability +3.8/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Small town living in this cozy home offering 2-3 bedrooms. Located on a quiet street with larger yards and nice tree coverage! This would be a great starter house or a nice addition to your investment portfolio! Schedule a showing today!

Key facts

• 0.29 acre lot
• Built 1930
• Listed 62 days

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $87k.

Deal economics

• At list price, monthly cash flow is $160 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($896 rent vs $87k).
• Recommended offer: $82k (6.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 76/100 on livability (#154 in MN, #3,401 nationally) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime D+, amenities F, commute F.
• Tri-County School District (rural): math 60% / reading 65% proficiency, ranked #130 of 467 in MN (top 28%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 7 active listings in the ZIP; 4 units permitted in Kittson County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $6k of equity ($601 loan paydown + $6k appreciation (6.5% local appreciation)).
• Kittson County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (6.5% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 6, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 63 days — a 6% lower offer ($82k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $81,780 (6.0% below list)

Questions for the listing agent

1. It's been on market 63 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 1930 — 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 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?
6. 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?
7. 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.
8. 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.
9. 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: 1.03% ✓
• Cap rate: 8.50%
• Cash-on-cash: 7.87%
• DSCR: 1.35
• GRM: 8.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

6.5% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 22.9%
• Equity multiple: 2.55×
• Total profit: $37,848
• Equity at exit: $57,433

10-year hold

• IRR: 21.5%
• Equity multiple: 5.22×
• Total profit: $102,723
• Equity at exit: $106,605

Cash invested: $24,360 (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 56732

• Home prices YoY: 4.1%
• Active inventory: 7
• Price-to-rent: 8.1×

Monthly cashflow live

• Estimated rent: $896 medium
• Mortgage (P&I): −$456
• Tax from tax record: −$56 /mo · $670/yr
• Insurance: −$36
• HOA: −$0
• Vacancy / Maint / Mgmt: −$188
• Net cashflow: $160

Break-even live

Break-even rent $694

Max offer price $87,000

Occupancy floor 77%

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: $21,750
• Closing costs: $2,610
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-06-18
   days on market $87,000 Active 63 DOM
2. 2026-06-17
   days on market $87,000 Active 62 DOM
3. 2026-06-16
   days on market $87,000 Active 61 DOM
4. 2026-06-15
   days on market $87,000 Active 60 DOM
5. 2026-06-13
   days on market $87,000 Active 58 DOM
6. 2026-06-12
   days on market $87,000 Active 57 DOM
7. 2026-06-09
   days on market $87,000 Active 54 DOM
8. 2026-06-08
   days on market $87,000 Active 53 DOM
9. 2026-06-07
   days on market $87,000 Active 52 DOM
10. 2026-06-05
    days on market $87,000 Active 50 DOM
11. 2026-06-04
    days on market $87,000 Active 48 DOM
12. 2026-06-02
    days on market $87,000 Active 47 DOM
13. 2026-06-01
    days on market $87,000 Active 46 DOM
14. 2026-05-31
    days on market $87,000 Active 45 DOM
15. 2026-05-31
    days on market $87,000 Active 44 DOM
16. 2026-04-16
    listed $87,000 Active 237-char remark

    Show marketing remark (237 chars)

    Small town living in this cozy home offering 2-3 bedrooms. Located on a quiet street with larger yards and nice tree coverage! This would be a great starter house or a nice addition to your investment portfolio! Schedule a showing today!

ⓘ 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: $670 · $56/mo
• Projected year-2 tax: $822 · $69/mo
• Expected delta: +$152/yr (+$13/mo · 22.7%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 10/10 Extreme
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,755
• − Mortgage interest: −$4,873
• − Property taxes: −$670
• − Insurance: −$435
• − Repairs & maintenance: −$860
• − Management: −$860
• − Depreciation: −$2,531
• Taxable income: $525
• Est. tax owed @ 24.0%: −$126
• After-tax cash flow: $1,790/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: Tri-County School District
• NCES district ID: 2791446
• Math proficiency: 60% ▼ -10.00%
• Reading proficiency: 65% ▼ -10.00%
• Median HH income: $41,867
• Composite: 53.87/100
• National rank: #3041
• State rank: #130 of 467 in MN

Livability — Karlstad

• Score: 76/100
• State rank: #154
• US rank: #3401

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Karlstad, MN
• Population (ZIP): 978

Population outlook (Kittson County) Hauer SSP2

• Today (2025): 4,195 people
• By 2030: 4,100 · -2.3%
• By 2040: 3,952 · -5.8%
• By 2050: 3,869 · -7.8%
• By 2075: 3,832 · -8.7%
• By 2100: 3,529 · -15.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (97%)
• Race & ethnicity: White 97% Two or more races 1%
• Common ancestry: Portuguese 40% Scottish 7% Romanian 4%
• Foreign-born: 1% · Canada

Political lean MEDSL · Kittson

• 2024 margin: Strong R (+25.0) · D 36.5% · R 61.5% · Other 2.0%
• 2008→2024 swing: -43.5pp toward R · 2008: 18.5pp · 2024: -25.0pp
• All cycles: 2024: R+25.0 2020: R+20.5 2016: R+22.3 2012: D+6.1 2008: D+18.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 6.50%
• Current HPI: 166.5143
• 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

1 event — show timeline

• 2026-04-16 Listed $87,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+13.0%/yr

Latest (2025): $670 · +65.8% YoY. Source: county tax records.