517 Elliot Dr SE

Grand Meadow, MN 55936

$164,000D-

2 bd · 2.0 ba · 1,782 sqft · Built 2004 · SingleFamily · Pending · 5 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,100/mo
• Mortgage (P&I): −$860
• Tax + insurance: −$284
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $-275/mo
• Annual: $-3,299/yr
• Cap rate: 4.28%
• Cash-on-cash: -7.18%
• DSCR: 0.68
• 1% rule: 0.67%
• Cash to close: $45,920

Investor read

• This is a 2-bed/2.0-bath single-family listed at $164k.
• At list price, monthly cash flow is $-275 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $115k (29.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $110k (32.9% below list).
• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $110k (32.9% below list) — sets the bar for 1% rule.
• In year one you build about $18k of equity ($1k loan paydown + $16k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#320 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety D-.
• Grand Meadow Public School District (rural): math 30% / reading 42% proficiency, ranked #239 of 301 in MN (top 79%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Grand Meadow Elementary (math 74% / reading 54%, grade B, #130 of 857 statewide, top 18%, 173 students, 32% FRL); Grand Meadow Middle (math 12% / reading 32%, grade F, #225 of 258 statewide, top 89%, 133 students, 34% FRL); Grand Meadow Senior High (math 30% / reading 54%, grade F, #220 of 471 statewide, top 47%, 139 students, 32% FRL).
• Market conditions: 14 active listings in the ZIP; 53 units permitted in Mower County in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 19y ago 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.
• Current owner paid $123k; 33% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• By year 3, paydown + projected appreciation supports a ~$44k 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.