23478 Farwell Ave · Warsaw, MN 55087

$32,000

2 bd · 1.0 ba · 672 sqft · SingleFamily public records · 5 Days on market

Built 1950 0.25 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 +5.5/10.0
• Livability +3.3/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.3/10.0

Listing remarks

Opportunity awaits for those with vision! Situated on a generous . 25-acre lot, this property offers potential—whether you’re looking for your next major renovation project or considering a complete tear-down to build new. The existing home features 2 bedrooms and 1 bathroom, but make no mistake—this property requires substantial work and is being sold as-is. For investors, builders, or buyers ready to take on a project, the value here is in the land and the possibilities it holds. With space to reimagine, expand, or start fresh, this lot provides a rare chance to create something truly your own. Bring your ideas, your plans, and your vision.

Key facts

• Generous lot
• Value in the land
• Complete tear-down

Tags

• GENEROUS LOT
• MAJOR RENOVATION PROJECT
• COMPLETE TEAR-DOWN
• SUBSTANTIAL WORK
• SOLD AS-IS
• VALUE IN THE LAND

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $32k.

Deal economics

• At list price, monthly cash flow is $489 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($905 rent vs $32k).

Location & tenants

• Location reads 66/100 on livability (#483 in MN) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, cost of living A-; Watch: schools D+, amenities F, commute F.
• Faribault Public School District (town): math 17% / reading 34% proficiency, ranked #275 of 301 in MN (top 91%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 3 active listings in the ZIP; 93 units permitted in Rice County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $536 of equity ($221 loan paydown + $315 appreciation (1.0% local appreciation)).
• At projected returns (1.0% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $32,000

Questions for the listing agent

1. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
4. 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.
5. 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.
6. 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: 2.83% ✓
• Cap rate: 24.62%
• Cash-on-cash: 65.47%
• DSCR: 3.91
• GRM: 2.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

0.98% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 68.3%
• Equity multiple: 4.54×
• Total profit: $31,722
• Equity at exit: $10,897

10-year hold

• IRR: 69.5%
• Equity multiple: 9.23×
• Total profit: $73,756
• Equity at exit: $14,460

Cash invested: $8,960 (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 55087

• Home prices YoY: 0.7%
• Active inventory: 3
• Price-to-rent: 2.9×

Monthly cashflow live

• Estimated rent: $905 medium
• Mortgage (P&I): −$168
• Tax from tax record: −$45 /mo · $538/yr
• Insurance: −$13
• HOA: −$0
• Vacancy / Maint / Mgmt: −$190
• Net cashflow: $489

Break-even live

Break-even rent $286

Max offer price $32,000

Occupancy floor 41%

Sensitivity live

Price	-10% $507	-5% $498	+0% $489	+5% $480	+10% $471
Rent	-10% $417	-5% $453	+0% $489	+5% $525	+10% $560
Rate	-1.0pp $505	-0.5pp $497	base $489	+0.5pp $481	+1.0pp $472

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: $8,000
• Closing costs: $960
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-04-27
   status Pending
2. 2026-04-22
   listed $32,000 Active

ⓘ 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: $538 · $45/mo
• Projected year-2 tax: $538 · $45/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 1/10 Low FEMA zone X (unshaded) · 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 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,857
• − Mortgage interest: −$1,792
• − Property taxes: −$538
• − Insurance: −$160
• − Repairs & maintenance: −$869
• − Management: −$869
• − Depreciation: −$931
• Taxable income: $5,699
• Est. tax owed @ 24.0%: −$1,368
• After-tax cash flow: $4,498/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: Faribault Public School District
• NCES district ID: 2711760
• Math proficiency: 17% ▼ -18.00%
• Reading proficiency: 34% ▼ -8.00%
• Median HH income: $54,584
• Composite: 22.85/100
• National rank: #8011
• State rank: #275 of 301 in MN

Livability — Warsaw

• Score: 66/100
• State rank: #483
• US rank: #11585

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Warsaw, MN
• Population (ZIP): 425

Population outlook (Rice County) Hauer SSP2

• Today (2025): 66,716 people
• By 2030: 67,352 · +1.0%
• By 2040: 67,595 · +1.3%
• By 2050: 67,074 · +0.5%
• By 2075: 66,641 · -0.1%
• By 2100: 66,205 · -0.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (85%)
• Race & ethnicity: White 85% Hispanic / Latino 7% Two or more races 6%
• Hispanic origin (detail): Mexican 7%
• Common ancestry: Portuguese 17% Italian 9% Romanian 6%
• Foreign-born: 7% · Canada
• Languages at home: 84% English-only · Spanish 15% Russian/Polish/Slavic 1%

Political lean MEDSL · Rice

• 2024 margin: Toss-up / Even · D 47.8% · R 50.3% · Other 1.8%
• 2008→2024 swing: -14.0pp toward R · 2008: 11.5pp · 2024: -2.5pp
• All cycles: 2024: R+2.5 2020: R+0.2 2016: R+3.1 2012: D+8.3 2008: D+11.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 0.98%
• Current HPI: 145.0148
• 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

2 events — show timeline

• 2026-04-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-22 Listed $32,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+4.1%/yr

Latest (2025): $538 · -5.3% YoY. Source: county tax records.