117 N Cottage Grove Ave Ave · Luverne, MN 56156

$159,900

4 bd · 2.0 ba · 1,088 sqft · SingleFamily public records · 78 Days on market

Built 1908 8,520 sqft lot $147/sqft · 52% above area Est $198k · 19% under ↓ 3% since listing

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Why this score? — see what drove the D 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).

• ARV discount +15.0/15.0
• Cash flow +10.0/30.0
• Schools +4.8/10.0
• Livability +4.3/5.0
• DSCR +2.8/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• 1% rule +2.0/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to this charming two-story home nestled in a well established neighborhood full of character and mature landscaping. This inviting property features 4 spacious bedrooms and 2 full bathrooms, offering plenty of room for comfortable living. The main floor boasts a formal dining room perfect for hosting gatherings as well as the convenience of main floor laundry. Step outside to enjoy a covered front deck, ideal for relaxing with your morning coffee, along with a patio space perfect for outdoor entertaining. With its classic layout and warm charm, this home is ideal for anyone seeking both functionality and timeless appeal in a desirable community.

Key facts

• Formal dining room
• Main floor laundry
• Covered front deck

Tags

• TWO STORY HOME
• FORMAL DINING ROOM
• MAIN FLOOR LAUNDRY
• COVERED FRONT DECK
• PATIO SPACE

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $160k.

Deal economics

• At list price, monthly cash flow is $-97 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $143k (10.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $112k (29.6% below list).
• Recommended offer: $112k (29.6% below list) — sets the bar for 1% rule.
• Cap rate 5.6% vs local median 3.6% in Luverne — 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.

Location & tenants

• Location reads 86/100 on livability (#14 in MN, #455 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, cost of living A+, housing A+; Watch: commute F.
• Luverne Public School District (rural): math 55% / reading 58% proficiency, ranked #64 of 301 in MN (top 21%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 64 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 66 units permitted in Rock County in 2024 (50 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 $5k of value loss. Plan a longer hold.
• Rock County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 78 days — a 6% lower offer ($150k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1908 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $112,500 (29.6% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. It's been on market 78 days. Have you received any prior offers? Is the seller open to a 30% concession, seller financing, or rate buy-down credit?
3. Built in 1908 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. 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?
8. 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.
9. 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.
10. 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: 0.70% ✗
• Cap rate: 5.57%
• Cash-on-cash: -2.60%
• DSCR: 0.88
• GRM: 11.8

CMA / ARV

• ARV (median comp): $198,174
• List price: $159,900
• Delta: -19.31%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
617 W Lincoln St St	0.04mi	3/1.5 (-1)	1,250 (+15%)	4mo	$220,000	$176	63
501 Central Ln Ln	0.68mi	3/1.5 (-1)	1,040 (-4%)	8mo	$223,000	$214	48
414 N Freeman Ave Ave	0.53mi	3/1.5 (-1)	1,232 (+13%)	4mo	$188,000	$153	43

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: -20.7%
• Equity multiple: 0.28×
• Total profit: $-32,139
• Equity at exit: $23,842

10-year hold

• IRR: -14.0%
• Equity multiple: 0.19×
• Total profit: $-36,163
• Equity at exit: $13,825

Cash invested: $44,772 (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 56156

• Active inventory: 64
• Price-to-rent: 11.8×

Monthly cashflow live

• Estimated rent: $1,125 medium
• Mortgage (P&I): −$839
• Tax from tax record: −$80 /mo · $966/yr
• Insurance: −$67
• HOA: −$0
• Vacancy / Maint / Mgmt: −$236
• Net cashflow: $-97

Break-even live

Break-even rent $1,248

Max offer price $142,781

Occupancy floor —

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: $39,975
• Closing costs: $4,797
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
109 E Luverne St #327 Luverne, MN	3.0	1.0	1019	$1,125	$1.10	43d	1	0.53mi
109 E Luverne St Luverne, MN	2.0–3.0	1.0	975	$1,125	$1.15	43d	3	0.53mi

Listing history 17 events

1. 2026-06-18
   days on market $159,900 Active 78 DOM
2. 2026-06-17
   days on market $159,900 Active 77 DOM
3. 2026-06-16
   days on market $159,900 Active 76 DOM
4. 2026-06-15
   days on market $159,900 Active 75 DOM
5. 2026-06-13
   days on market $159,900 Active 73 DOM
6. 2026-06-12
   days on market $159,900 Active 72 DOM
7. 2026-06-09
   days on market $159,900 Active 69 DOM
8. 2026-06-08
   days on market $159,900 Active 68 DOM
9. 2026-06-07
   days on market $159,900 Active 67 DOM
10. 2026-06-07
    days on market $159,900 Active 66 DOM
11. 2026-06-04
    days on market $159,900 Active 63 DOM
12. 2026-06-02
    days on market $159,900 Active 62 DOM
13. 2026-06-01
    days on market $159,900 Active 61 DOM
14. 2026-05-31
    days on market $159,900 Active 60 DOM
15. 2026-05-31
    days on market $159,900 Active 59 DOM
16. 2026-05-04
    price $159,900 661-char remark

    Show marketing remark (661 chars)

    Welcome to this charming two-story home nestled in a well established neighborhood full of character and mature landscaping. This inviting property features 4 spacious bedrooms and 2 full bathrooms, offering plenty of room for comfortable living. The main floor boasts a formal dining room perfect for hosting gatherings as well as the convenience of main floor laundry. Step outside to enjoy a covered front deck, ideal for relaxing with your morning coffee, along with a patio space perfect for outdoor entertaining. With its classic layout and warm charm, this home is ideal for anyone seeking both functionality and timeless appeal in a desirable community.

17. 2026-04-01
    listed $165,000 Active 661-char remark

    Show marketing remark (661 chars)

    Welcome to this charming two-story home nestled in a well established neighborhood full of character and mature landscaping. This inviting property features 4 spacious bedrooms and 2 full bathrooms, offering plenty of room for comfortable living. The main floor boasts a formal dining room perfect for hosting gatherings as well as the convenience of main floor laundry. Step outside to enjoy a covered front deck, ideal for relaxing with your morning coffee, along with a patio space perfect for outdoor entertaining. With its classic layout and warm charm, this home is ideal for anyone seeking both functionality and timeless appeal in a desirable community.

ⓘ 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: $966 · $80/mo
• Projected year-2 tax: $1,378 · $115/mo
• Expected delta: +$412/yr (+$34/mo · 42.7%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,500
• − Mortgage interest: −$8,957
• − Property taxes: −$966
• − Insurance: −$800
• − Repairs & maintenance: −$1,080
• − Management: −$1,080
• − Depreciation: −$4,652
• Taxable loss: −$4,034
• Est. tax savings @ 24.0%: +$968
• After-tax cash flow: $-195/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: Luverne Public School District
• NCES district ID: 2718330
• Math proficiency: 55% ▼ -14.00%
• Reading proficiency: 58% ▼ -2.00%
• Median HH income: $48,225
• Composite: 48.0/100
• National rank: #2198
• State rank: #64 of 301 in MN

Livability — Luverne

• Score: 86/100
• State rank: #14
• US rank: #455

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Luverne, MN
• Population (ZIP): 6,398

Population outlook (Rock County) Hauer SSP2

• Today (2025): 9,476 people
• By 2030: 9,326 · -1.6%
• By 2040: 9,006 · -5.0%
• By 2050: 8,662 · -8.6%
• By 2075: 7,973 · -15.9%
• By 2100: 7,033 · -25.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Two or more races 4% Hispanic / Latino 3%
• Common ancestry: Portuguese 16% Iranian 14% Slovak 2%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 2% Other Asian/Pacific 1%

Political lean MEDSL · Rock

• 2024 margin: Solid R (+39.3) · D 29.6% · R 68.8% · Other 1.6%
• 2008→2024 swing: -25.3pp toward R · 2008: -14.0pp · 2024: -39.3pp
• All cycles: 2024: R+39.3 2020: R+38.7 2016: R+35.7 2012: R+17.9 2008: R+14.0

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -189.55%
• Current HPI: 211.0729
• 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

-3.1% since first listed

2 events — show timeline

• 2026-05-04 Price Changed $159,900 REALTOR® Association of the Sioux Empire
• 2026-04-01 Listed $165,000 REALTOR® Association of the Sioux Empire

Property tax history

+5.3%/yr

Latest (2025): $966 · +11.0% YoY. Source: county tax records.