122 1st Ave NE · Clara City, MN 56222

$169,000

3 bd · 2.0 ba · 1,887 sqft · SingleFamily · 93 Days on market

Built 1945 5,314 sqft 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
• Schools +3.8/10.0
• Livability +3.7/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +1.2/10.0

Listing remarks MLS

Welcome to this charming 3 bedroom, 2 bath home nestled in the heart of Clara City. Built in 1945, this well-kept property offers a wonderful blend of character and opportunity, serving as the perfect blank canvas for its next owner. Inside, you’ll find a spacious living room along with two main-level bedrooms and a recently updated main-floor bathroom. The home features timeless details such as arched doorways and an abundance of built-in storage, adding both charm and functionality. A practical mudroom provides the perfect everyday entry, while the front entryway offers a welcoming space for guests. Upstairs, a versatile loft area creates an ideal setting for a primary bedroom, cozy retreat, or bonus living space to fit your needs. Downstairs, a sizable storage room offers exciting potential for a hobby room, workspace, or even a future non-conforming bedroom. Outside, the property truly shines with a rare three-stall detached garage and an extra-wide driveway, providing excellent space for vehicles, storage, or projects. Conveniently located near the school, church, and downtown businesses, this home offers small-town living with everyday conveniences close by. Schedule your showing today and come see the potential!

Key facts

• Practical mudroom
• Arched doorways
• Versatile loft area

Tags

• SPACIOUS LIVING ROOM
• ARCHED DOORWAYS
• BUILT-IN STORAGE
• PRACTICAL MUDROOM
• VERSATILE LOFT AREA
• SIZABLE STORAGE ROOM

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $169k.

Deal economics

• At list price, monthly cash flow is $1k ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $169k).
• Recommended offer: $154k (9.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 73/100 on livability (#244 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, employment D-.
• Maccray School District (rural): math 41% / reading 46% proficiency, ranked #188 of 301 in MN (top 62%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 8 active listings in the ZIP; 13 units permitted in Chippewa County in 2024 (0 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.
• Chippewa County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $47k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 93 days — a 9% lower offer ($154k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts; this cycle's ask has dropped $10k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $42k; list at $169k implies a 298% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1945 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $153,790 (9.0% below list)

Questions for the listing agent

1. It's been on market 93 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1945 — 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. 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.
6. 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.
7. 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: 1.57% ✓
• Cap rate: 13.61%
• Cash-on-cash: 26.13%
• DSCR: 2.16
• GRM: 5.3

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: 19.8%
• Equity multiple: 1.81×
• Total profit: $38,206
• Equity at exit: $25,198

10-year hold

• IRR: 28.1%
• Equity multiple: 3.49×
• Total profit: $117,664
• Equity at exit: $14,612

Cash invested: $47,320 (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 56222

• Home prices YoY: -3.3%
• Active inventory: 8
• Price-to-rent: 5.3×

Monthly cashflow live

• Estimated rent: $2,652 medium
• Mortgage (P&I): −$886
• Tax from tax record: −$108 /mo · $1,300/yr
• Insurance: −$70
• HOA: −$0
• Vacancy / Maint / Mgmt: −$557
• Net cashflow: $1,030

Break-even live

Break-even rent $1,348

Max offer price $169,000

Occupancy floor 56%

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: $42,250
• Closing costs: $5,070
• Reserves months: —
• Total cash needed: —

Listing history 20 events

1. 2026-06-18
   days on market $169,000 Active 93 DOM
2. 2026-06-17
   days on market $169,000 Active 92 DOM
3. 2026-06-16
   days on market $169,000 Active 91 DOM
4. 2026-06-15
   days on market $169,000 Active 90 DOM
5. 2026-06-13
   days on market $169,000 Active 88 DOM
6. 2026-06-12
   days on market $169,000 Active 87 DOM
7. 2026-06-09
   days on market $169,000 Active 84 DOM
8. 2026-06-08
   days on market $169,000 Active 83 DOM
9. 2026-06-07
   days on market $169,000 Active 82 DOM
10. 2026-06-05
    days on market $169,000 Active 80 DOM
11. 2026-06-04
    days on market $169,000 Active 78 DOM
12. 2026-06-02
    days on market $169,000 Active 77 DOM
13. 2026-06-01
    days on market $169,000 Active 76 DOM
14. 2026-05-31
    days on market $169,000 Active 75 DOM
15. 2026-05-31
    days on market $169,000 Active 74 DOM
16. 2026-05-11
    price $169,000 1247-char remark

    Show marketing remark (1247 chars)

    Welcome to this charming 3 bedroom, 2 bath home nestled in the heart of Clara City. Built in 1945, this well-kept property offers a wonderful blend of character and opportunity, serving as the perfect blank canvas for its next owner. Inside, you’ll find a spacious living room along with two main-level bedrooms and a recently updated main-floor bathroom. The home features timeless details such as arched doorways and an abundance of built-in storage, adding both charm and functionality. A practical mudroom provides the perfect everyday entry, while the front entryway offers a welcoming space for guests. Upstairs, a versatile loft area creates an ideal setting for a primary bedroom, cozy retreat, or bonus living space to fit your needs. Downstairs, a sizable storage room offers exciting potential for a hobby room, workspace, or even a future non-conforming bedroom. Outside, the property truly shines with a rare three-stall detached garage and an extra-wide driveway, providing excellent space for vehicles, storage, or projects. Conveniently located near the school, church, and downtown businesses, this home offers small-town living with everyday conveniences close by. Schedule your showing today and come see the potential!

17. 2026-05-08
    status Active 1247-char remark

    Show marketing remark (1247 chars)

    Welcome to this charming 3 bedroom, 2 bath home nestled in the heart of Clara City. Built in 1945, this well-kept property offers a wonderful blend of character and opportunity, serving as the perfect blank canvas for its next owner. Inside, you’ll find a spacious living room along with two main-level bedrooms and a recently updated main-floor bathroom. The home features timeless details such as arched doorways and an abundance of built-in storage, adding both charm and functionality. A practical mudroom provides the perfect everyday entry, while the front entryway offers a welcoming space for guests. Upstairs, a versatile loft area creates an ideal setting for a primary bedroom, cozy retreat, or bonus living space to fit your needs. Downstairs, a sizable storage room offers exciting potential for a hobby room, workspace, or even a future non-conforming bedroom. Outside, the property truly shines with a rare three-stall detached garage and an extra-wide driveway, providing excellent space for vehicles, storage, or projects. Conveniently located near the school, church, and downtown businesses, this home offers small-town living with everyday conveniences close by. Schedule your showing today and come see the potential!

18. 2026-05-02
    historical 1247-char remark

    Show marketing remark (1247 chars)

    Welcome to this charming 3 bedroom, 2 bath home nestled in the heart of Clara City. Built in 1945, this well-kept property offers a wonderful blend of character and opportunity, serving as the perfect blank canvas for its next owner. Inside, you’ll find a spacious living room along with two main-level bedrooms and a recently updated main-floor bathroom. The home features timeless details such as arched doorways and an abundance of built-in storage, adding both charm and functionality. A practical mudroom provides the perfect everyday entry, while the front entryway offers a welcoming space for guests. Upstairs, a versatile loft area creates an ideal setting for a primary bedroom, cozy retreat, or bonus living space to fit your needs. Downstairs, a sizable storage room offers exciting potential for a hobby room, workspace, or even a future non-conforming bedroom. Outside, the property truly shines with a rare three-stall detached garage and an extra-wide driveway, providing excellent space for vehicles, storage, or projects. Conveniently located near the school, church, and downtown businesses, this home offers small-town living with everyday conveniences close by. Schedule your showing today and come see the potential!

19. 2026-03-12
    listed $179,000 Active 1247-char remark

    Show marketing remark (1247 chars)

    Welcome to this charming 3 bedroom, 2 bath home nestled in the heart of Clara City. Built in 1945, this well-kept property offers a wonderful blend of character and opportunity, serving as the perfect blank canvas for its next owner. Inside, you’ll find a spacious living room along with two main-level bedrooms and a recently updated main-floor bathroom. The home features timeless details such as arched doorways and an abundance of built-in storage, adding both charm and functionality. A practical mudroom provides the perfect everyday entry, while the front entryway offers a welcoming space for guests. Upstairs, a versatile loft area creates an ideal setting for a primary bedroom, cozy retreat, or bonus living space to fit your needs. Downstairs, a sizable storage room offers exciting potential for a hobby room, workspace, or even a future non-conforming bedroom. Outside, the property truly shines with a rare three-stall detached garage and an extra-wide driveway, providing excellent space for vehicles, storage, or projects. Conveniently located near the school, church, and downtown businesses, this home offers small-town living with everyday conveniences close by. Schedule your showing today and come see the potential!

20. 2011-02-11
    soldstatus $42,500

ⓘ 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: $1,300 · $108/mo
• Projected year-2 tax: $1,596 · $133/mo
• Expected delta: +$296/yr (+$25/mo · 22.8%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 13 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $31,826
• − Mortgage interest: −$9,467
• − Property taxes: −$1,300
• − Insurance: −$845
• − Repairs & maintenance: −$2,546
• − Management: −$2,546
• − Depreciation: −$4,916
• Taxable income: $10,206
• Est. tax owed @ 24.0%: −$2,449
• After-tax cash flow: $9,913/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: Maccray School District
• NCES district ID: 2700091
• Math proficiency: 41% ▼ -10.00%
• Reading proficiency: 46% ▼ -7.00%
• Median HH income: $52,637
• Composite: 37.64/100
• National rank: #4374
• State rank: #188 of 301 in MN

Livability — Clara City

• Score: 73/100
• State rank: #244
• US rank: #5251

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Clara City, MN
• Population (ZIP): 2,012

Population outlook (Chippewa County) Hauer SSP2

• Today (2025): 11,593 people
• By 2030: 11,294 · -2.6%
• By 2040: 10,715 · -7.6%
• By 2050: 10,229 · -11.8%
• By 2075: 9,600 · -17.2%
• By 2100: 8,500 · -26.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (88%)
• Race & ethnicity: White 88% Hispanic / Latino 9% Two or more races 4% Native American 2%
• Hispanic origin (detail): Mexican 8%
• Common ancestry: Portuguese 25% Iranian 12% Lithuanian 2%
• Foreign-born: 4% · Canada
• Languages at home: 94% English-only · Spanish 5%

Political lean MEDSL · Chippewa

• 2024 margin: Solid R (+34.1) · D 32.2% · R 66.3% · Other 1.6%
• 2008→2024 swing: -40.0pp toward R · 2008: 5.9pp · 2024: -34.1pp
• All cycles: 2024: R+34.1 2020: R+30.6 2016: R+28.9 2012: D+1.9 2008: D+5.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -7.61%
• Current HPI: 220.8934
• 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

+297.6% since first listed

5 events — show timeline

• 2026-05-11 Price Changed $169,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-08 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-12 Listed $179,000 NORTHSTARMLS as Distributed by MLS Grid
• 2011-02-11 Sold (Public Records) $42,500 Public Records

Property tax history

+5.3%/yr

Latest (2025): $1,300 · -3.0% YoY. Source: county tax records.