225 Herbert St · Hendrum, MN 56550

$50,000

3 bd · 2.0 ba · 998 sqft · Other · 147 Days on market

Built 1975 0.32 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Appreciation +5.0/10.0
• Schools +5.0/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

This 1½-story home features 3 bedrooms, 2 bathrooms, a large 3-season porch, and a roomy 2-stall garage. It needs a little TLC, but it has lots of potential!

Key facts

• Large 3-season porch
• 0.32 acre lot
• 2 garage spots

Tags

• LARGE 3-SEASON PORCH

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath other listed at $50k.

Deal economics

• At list price, monthly cash flow is $353 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($962 rent vs $50k).
• Recommended offer: $44k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 65/100 on livability (#528 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, schools B+; Watch: crime D+, health & safety D+, amenities F.
• Market conditions: 5 active listings in the ZIP; 8 units permitted in Norman County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $2k of equity ($346 loan paydown + $2k appreciation (3.0% local appreciation)).
• At projected returns (3.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 147 days — a 12% lower offer ($44k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask has dropped $10k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: property tax is 3.0% of price.

Recommended offer $44,000 (12.0% below list)

Questions for the listing agent

1. It's been on market 147 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
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. 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?
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: 1.92% ✓
• Cap rate: 14.76%
• Cash-on-cash: 30.25%
• DSCR: 2.35
• GRM: 4.3

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: 36.1%
• Equity multiple: 3.04×
• Total profit: $28,555
• Equity at exit: $22,482

10-year hold

• IRR: 36.3%
• Equity multiple: 6.02×
• Total profit: $70,228
• Equity at exit: $34,648

Cash invested: $14,000 (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 56550

• Active inventory: 5
• Price-to-rent: 4.3×

Monthly cashflow live

• Estimated rent: $962 medium
• Mortgage (P&I): −$262
• Tax from tax record: −$124 /mo · $1,492/yr
• Insurance: −$21
• HOA: −$0
• Vacancy / Maint / Mgmt: −$202
• Net cashflow: $353

Break-even live

Break-even rent $516

Max offer price $50,000

Occupancy floor 58%

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: $12,500
• Closing costs: $1,500
• Reserves months: —
• Total cash needed: —

Listing history 18 events

1. 2026-06-16
   status $50,000 Pending 147 DOM
2. 2026-06-15
   days on market $50,000 Active 147 DOM
3. 2026-06-13
   days on market $50,000 Active 145 DOM
4. 2026-06-12
   days on market $50,000 Active 144 DOM
5. 2026-06-09
   days on market $50,000 Active 141 DOM
6. 2026-06-08
   days on market $50,000 Active 140 DOM
7. 2026-06-07
   days on market $50,000 Active 139 DOM
8. 2026-06-05
   days on market $50,000 Active 137 DOM
9. 2026-06-04
   days on market $50,000 Active 135 DOM
10. 2026-06-02
    pricedays on market $50,000 Active 134 DOM
11. 2026-06-01
    days on market $60,000 Active 133 DOM
12. 2026-05-31
    days on market $60,000 Active 132 DOM
13. 2026-05-31
    days on market $60,000 Active 131 DOM
14. 2026-01-12
    listed $60,000 Active 165-char remark

    Show marketing remark (165 chars)

    This 1½-story home features 3 bedrooms, 2 bathrooms, a large 3-season porch, and a roomy 2-stall garage. It needs a little TLC, but it has lots of potential!

15. 2026-01-01
    historical
16. 2025-09-29
    price $74,000
17. 2025-06-30
    listed $82,500 Active
18. 2014-02-03
    soldstatus $47,000

ⓘ 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: $1,492 · $124/mo
• Projected year-2 tax: $1,492 · $124/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 · 20% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,549
• − Mortgage interest: −$2,801
• − Property taxes: −$1,492
• − Insurance: −$250
• − Repairs & maintenance: −$924
• − Management: −$924
• − Depreciation: −$1,455
• Taxable income: $3,704
• Est. tax owed @ 24.0%: −$889
• After-tax cash flow: $3,346/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)

No district data.

Livability — Hendrum

• Score: 65/100
• State rank: #528
• US rank: #12695

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hendrum, MN
• Population (ZIP): 291

Population outlook (Norman County) Hauer SSP2

• Today (2025): 6,540 people
• By 2030: 6,489 · -0.8%
• By 2040: 6,436 · -1.6%
• By 2050: 6,348 · -2.9%
• By 2075: 6,263 · -4.2%
• By 2100: 5,731 · -12.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (92%)
• Race & ethnicity: White 92% Two or more races 6% Hispanic / Latino 1%
• Common ancestry: Portuguese 39% Arab 5% Lithuanian 2%
• Foreign-born: 3%
• Languages at home: 96% English-only · Arabic 4%

Political lean MEDSL · Norman

• 2024 margin: Strong R (+22.2) · D 37.5% · R 59.8% · Other 2.7%
• 2008→2024 swing: -49.2pp toward R · 2008: 26.9pp · 2024: -22.2pp
• All cycles: 2024: R+22.2 2020: R+16.0 2016: R+13.5 2012: D+10.8 2008: D+26.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: —
• Current HPI: —
• 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

+27.7% since first listed

5 events — show timeline

• 2026-01-12 Listed $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-29 Price Changed $74,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-30 Listed $82,500 NORTHSTARMLS as Distributed by MLS Grid
• 2014-02-03 Sold (Public Records) $47,000 Public Records

Property tax history

+6.0%/yr

Latest (2025): $1,492 · -45.1% YoY. Source: county tax records.