4335 Valley Dr NW · Rochester, MN 55901

$340,000

3 bd · 2.0 ba · 1,670 sqft · SingleFamily public records · 3 Days on market

Built 1991 8,799 sqft lot

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Why this score? — see what drove the D- 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 +11.5/30.0
• ARV discount +7.5/15.0
• Livability +4.6/5.0
• Schools +4.1/10.0
• DSCR +3.4/10.0
• 1% rule +3.0/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Move-in ready and exceptionally well maintained, this beautiful ranch-style home offers comfortable living space. The main level features vaulted ceilings, two spacious bedrooms, and an updated elegant marble kitchen countertops. The attached two-stall garage provides convenient parking and storage and includes a newer garage door. The fully finished lower level includes an additional bedroom, a cozy Franklin gas stove, and a versatile bonus room perfect for a home office, playroom, exercise space, or hobby room plus an extra storage room. Step outside to a deck, ideal for entertaining or relaxing. Enjoy the beautifully landscaped yard and private fenced backyard. Located just steps from Di

Key facts

• Marble countertops
• Bonus room
• Franklin gas stove

Tags

• UPDATED KITCHEN
• MARBLE COUNTERTOPS
• FRANKLIN GAS STOVE
• BONUS ROOM
• DECK
• LANDSCAPED YARD

Property features AI

Exterior

• Parking: Attached 2-car garage with garage door opener (approx. 22x24)
• Utilities: City water (in street); City sewer (in street); Natural gas; Electric service by Rochester Public Utilities
• Home design: Residential property; One level; Fully wheelchair accessible
• Construction: Block foundation; Roof replaced within the last 8 years
• Exterior features: Vinyl exterior; Full perimeter fencing; Deck

Interior

• Kitchen: Dishwasher; Range; Microwave; Refrigerator
• Bedrooms: 3 bedrooms
• Bathrooms: One full bathroom on the main floor; One three-quarter bathroom in the basement
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished basement; Gas fireplace; Dining area connects to kitchen
• Laundry & utility: Washer and dryer located on the lower level

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $340k.

Deal economics

• At list price, monthly cash flow is $-111 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $320k (5.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $271k (20.3% below list).
• Recommended offer: $271k (20.3% below list) — sets the bar for 1% rule.
• Cap rate 5.9% vs local median 3.6% in Rochester — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Bishop Elementary (math 51% / reading 51%, grade C-, #406 of 857 statewide, top 48%, 512 students, 41% FRL); John Adams Middle (math 20% / reading 42%, grade F, #191 of 258 statewide, top 74%, 731 students, 42% FRL); John Marshall Senior High (math 37% / reading 58%, grade D, #162 of 471 statewide, top 35%, 1,573 students, 43% FRL).
• Market conditions: Rents rising (+2.2%/yr); 509 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 15d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• This rent runs 34% of the median local income ($95k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Current owner paid $94k; list at $340k implies a 264% gain — meaningful room to come down on a strong offer.

Recommended offer $270,840 (20.3% below list)

Questions for the listing agent

1. 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?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are A-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?
4. 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?
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: 0.80% ✗
• Cap rate: 5.90%
• Cash-on-cash: -1.39%
• DSCR: 0.94
• GRM: 10.5

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.18% rent growth · sell at horizon

5-year hold

• IRR: -19.5%
• Equity multiple: 0.32×
• Total profit: $-64,371
• Equity at exit: $50,695

10-year hold

• IRR: -14.0%
• Equity multiple: 0.22×
• Total profit: $-74,147
• Equity at exit: $29,397

Cash invested: $95,200 (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 55901

• Home prices YoY: -33.2%
• Rents YoY: 2.2%
• Active inventory: 509
• Price-to-rent: 10.5×

Monthly cashflow live

• Estimated rent: $2,708 high
• Mortgage (P&I): −$1,783
• Tax from tax record: −$326 /mo · $3,906/yr
• Insurance: −$142
• HOA: −$0
• Vacancy / Maint / Mgmt: −$569
• Net cashflow: $-111

Break-even live

Break-even rent $2,848

Max offer price $320,475

Occupancy floor 99%

Sensitivity live

Price	-10% $82	-5% $-14	+0% $-111	+5% $-207	+10% $-303
Rent	-10% $-324	-5% $-218	+0% $-111	+5% $-4	+10% $103
Rate	-1.0pp $61	-0.5pp $-24	base $-111	+0.5pp $-199	+1.0pp $-288

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: $85,000
• Closing costs: $10,200
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3680 9th St NW Rochester, MN	2.0–3.0	2.5	1600	$2,695	$1.68	14d	17	0.37mi
1990 Ashland Dr NW Rochester, MN	1.0–3.0	1.0–2.0	920	$1,726	$1.88	14d	3	0.64mi
4275 Heritage Pl NW Rochester, MN	2.0–5.0	2.0–3.5	2067	$3,545	$1.71	14d	9	0.72mi
2127 Preserve Dr NW Rochester, MN	3.0	2.5	2136	$3,675	$1.72	45d	1	0.75mi
2257 Jordyn Rd NW Rochester, MN	3.0	2.0	1715	$3,440	$2.01	45d	1	0.89mi

Listing history 3 events

1. 2026-06-21
   days on market $340,000 Coming Soon 3 DOM
2. 2026-06-18
   remarks 699-char remark
3. 2026-06-18
   listed $340,000 Coming Soon 1 DOM

ⓘ 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: $3,906 · $326/mo
• Projected year-2 tax: $3,906 · $326/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 ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $32,501
• − Mortgage interest: −$19,045
• − Property taxes: −$3,906
• − Insurance: −$1,700
• − Repairs & maintenance: −$2,600
• − Management: −$2,600
• − Depreciation: −$9,891
• Taxable loss: −$7,242
• Est. tax savings @ 24.0%: +$1,738
• After-tax cash flow: $412/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 58,495
• Household income: $94,607
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 1651.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (71%)
• Race & ethnicity: White 71% Black 12% Asian 8% Two or more races 6% Hispanic / Latino 5%
• Hispanic origin (detail): Mexican 3%
• Common ancestry: Portuguese 11% Romanian 3% Iranian 2%
• Foreign-born: 15% · Canada, Vietnam, China
• Languages at home: 81% English-only · Spanish 3% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -126.08%
• Current HPI: 253.7999
• Rent YoY: ▲ 2.18%
• Metro: Rochester, MN
• 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

+263.6% since first listed

2 events — show timeline

• 2026-06-18 Coming Soon $340,000 NORTHSTARMLS as Distributed by MLS Grid
• 1996-11-29 Sold (Public Records) $93,500 Public Records

Property tax history

+7.7%/yr

Latest (2025): $3,906 · +16.9% YoY. Source: county tax records.