1002 6th Ave N

Wheaton, MN 56296

$182,000D

3 bd · 3.0 ba · 2,401 sqft · Built 1993 · SingleFamily · Pending · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,294/mo
• Mortgage (P&I): −$954
• Tax + insurance: −$313
• HOA: −$0
• Vac / Maint / Mgmt: −$272
• Net cashflow: $-245/mo
• Annual: $-2,944/yr
• Cap rate: 4.68%
• Cash-on-cash: -5.78%
• DSCR: 0.74
• 1% rule: 0.71%
• Cash to close: $50,960

Investor read

• This is a 3-bed/3.0-bath single-family listed at $182k.
• At list price, monthly cash flow is $-245 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $139k (23.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $129k (28.9% below list).
• It's been on market 25 days — a 2% lower offer ($179k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $129k (28.9% below list) — sets the bar for 1% rule.
• In year one you build about $15k of equity ($1k loan paydown + $14k appreciation (7.5% local appreciation)).
• Location reads 75/100 on livability (#178 in MN, #3,833 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D, amenities F, commute F.
• Wheaton Area Public School District (rural): math 60% / reading 60% proficiency, ranked #149 of 467 in MN (top 32%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 6 active listings in the ZIP; 4 units permitted in Traverse County in 2024 (0 in 5+ unit buildings).
• Traverse County population projected to shrink 10% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$37k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.
• 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.