781 W Palomino Ave

Pillager, MN 56473

$849,900D

8 bd · 4.0 ba · 4,400 sqft · Built 2026 · MultiFamily · Active · 32 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,143/mo
• Mortgage (P&I): −$4,457
• Tax + insurance: −$1,416
• HOA: −$0
• Vac / Maint / Mgmt: −$1,500
• Net cashflow: $-230/mo
• Annual: $-2,766/yr
• Cap rate: 5.97%
• Cash-on-cash: -1.16%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $237,972

Investor read

• This is a 4 × 2-bed/1-bath units multifamily listed at $850k. Condition is rated excellent.
• At list price, monthly cash flow is $-230 ($-3k/yr) — negative. Per door: $-58/mo.
• To cash-flow at today's rent, offer at most $817k (3.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $714k (16.0% below list).
• It's been on market 32 days — a 3% lower offer ($824k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $714k (16.0% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $25k of value loss. Plan a longer hold.
• Location reads 61/100 on livability (#722 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Pillager Public School District (rural): math 43% / reading 51% proficiency, ranked #146 of 301 in MN (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Pillager Elementary (math 62% / reading 57%, grade B-, #216 of 857 statewide, top 29%, 478 students, 52% FRL); Pillager Middle School (math 31% / reading 46%, grade F, #156 of 258 statewide, top 62%, 407 students, 47% FRL); Pillager Senior High School (math 44% / reading 57%, grade D+, #129 of 471 statewide, top 27%, 360 students, 43% FRL).
• Market conditions: 30 active listings in the ZIP; 285 units permitted in Cass County in 2024 (0 in 5+ unit buildings).
• Cass County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• 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?
• It's been on market 32 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.