321 1st Ave SW · Baudette, MN 56623

$124,900

2 bd · 1.0 ba · 1,451 sqft · SingleFamily · 62 Days on market

Built 1925 6,969 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 +16.4/30.0
• ARV discount +7.5/15.0
• DSCR +5.1/10.0
• 1% rule +3.7/10.0
• Livability +3.7/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Solid home and detached two car garage located on a corner lot close to the hospital and other city amenities. Easy opportunity to facilitate a third bedroom. Brand new commercial grade water heater. Affordable living in a great location. Perfect in-town spot to pursue outdoor activities from, whether it be fishing the mighty Rainy River or Lake of the Woods or hunting for berries and mushrooms in the local Beltrami and Pine Island state forests. Schedule your showing and check it out soon!

Key facts

• Outdoor activities
• Corner lot
• 6,969 sq ft lot

Tags

• DETACHED TWO CAR GARAGE
• CORNER LOT
• COMMERCIAL GRADE WATER HEATER
• OUTDOOR ACTIVITIES

Property features AI

Exterior

• Parking: 2-car garage (26x30, 7' door height, 8' door width)
• Utilities: City water (connected); City sewer (connected); 100 Amp electric service; Natural gas
• Home design: Residential property; Two levels; Entry facing not specified
• Construction: Asphalt roof (over 8 years old); Foundation area 718 (dimensions 24x16)
• Exterior features: City street frontage; Public maintained road

Interior

• Kitchen: Refrigerator; Electric water heater
• Bedrooms: 2 bedrooms
• Bathrooms: 1 full bathroom (upper level)
• Heating & cooling: Forced air heating; No central air
• Interior features: Informal dining area; Unfinished basement
• Laundry & utility: Washer; Dryer; Laundry room on lower level

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $125k.

Deal economics

• At list price, monthly cash flow is $71 ($854/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $108k (13.1% below list).
• Recommended offer: $108k (13.1% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 73/100 on livability (#243 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime D+, amenities F, commute F.
• Lake Of The Woods School District (rural): math 30% / reading 39% proficiency, ranked #259 of 301 in MN (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lake of The Woods Elementary (math 37% / reading 42%, grade F, #604 of 857 statewide, top 74%, 255 students, 45% FRL); Lake of The Woods Secondary (math 22% / reading 32%, grade F, #369 of 471 statewide, top 79%, 191 students, 40% FRL).
• Market conditions: 99 active listings in the ZIP; 13 units permitted in Lake of the Woods County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Lake of the Woods County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 62 days — a 6% lower offer ($117k) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts since 11y 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.

Risks & watch-outs

• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $108,490 (13.1% below list)

Questions for the listing agent

1. It's been on market 62 days. Have you received any prior offers? Is the seller open to a 13% concession, seller financing, or rate buy-down credit?
2. Built in 1925 — 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. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
6. 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?
7. 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.
8. 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.
9. 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: 0.87% ✗
• Cap rate: 6.98%
• Cash-on-cash: 2.44%
• DSCR: 1.11
• GRM: 9.6

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: -12.5%
• Equity multiple: 0.55×
• Total profit: $-15,735
• Equity at exit: $18,623

10-year hold

• IRR: -3.4%
• Equity multiple: 0.77×
• Total profit: $-7,988
• Equity at exit: $10,799

Cash invested: $34,972 (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 56623

• Home prices YoY: -15.0%
• Active inventory: 99
• Price-to-rent: 9.6×

Monthly cashflow live

• Estimated rent: $1,085 medium
• Mortgage (P&I): −$655
• Tax from tax record: −$79 /mo · $946/yr
• Insurance: −$52
• HOA: −$0
• Vacancy / Maint / Mgmt: −$228
• Net cashflow: $71

Break-even live

Break-even rent $995

Max offer price $124,900

Occupancy floor 88%

Sensitivity live

Price	-10% $142	-5% $107	+0% $71	+5% $36	+10% $1
Rent	-10% $-15	-5% $28	+0% $71	+5% $114	+10% $157
Rate	-1.0pp $134	-0.5pp $103	base $71	+0.5pp $39	+1.0pp $6

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: $31,225
• Closing costs: $3,747
• Reserves months: —
• Total cash needed: —

Listing history 28 events

1. 2026-06-22
   days on market $124,900 Active 62 DOM
2. 2026-06-21
   days on market $124,900 Active 61 DOM
3. 2026-06-21
   days on market $124,900 Active 60 DOM
4. 2026-06-18
   days on market $124,900 Active 58 DOM
5. 2026-06-17
   days on market $124,900 Active 57 DOM
6. 2026-06-16
   days on market $124,900 Active 56 DOM
7. 2026-06-15
   days on market $124,900 Active 55 DOM
8. 2026-06-13
   days on market $124,900 Active 53 DOM
9. 2026-06-12
   days on market $124,900 Active 52 DOM
10. 2026-06-09
    days on market $124,900 Active 49 DOM
11. 2026-06-08
    days on market $124,900 Active 48 DOM
12. 2026-06-07
    days on market $124,900 Active 47 DOM
13. 2026-06-07
    days on market $124,900 Active 46 DOM
14. 2026-06-04
    days on market $124,900 Active 43 DOM
15. 2026-06-02
    days on market $124,900 Active 42 DOM
16. 2026-06-01
    days on market $124,900 Active 41 DOM
17. 2026-05-31
    days on market $124,900 Active 40 DOM
18. 2026-05-31
    days on market $124,900 Active 39 DOM
19. 2026-04-21
    listed $124,900 Active 497-char remark
20. 2025-09-25
    historical
21. 2025-07-19
    price $126,000
22. 2025-05-12
    listed $129,000 Active
23. 2017-08-06
    historical
24. 2016-08-05
    listed $67,000
25. 2016-04-19
    historical
26. 2016-01-26
    listed $78,500
27. 2016-01-11
    historical
28. 2015-12-08
    listed $78,500

ⓘ 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: $946 · $79/mo
• Projected year-2 tax: $1,172 · $98/mo
• Expected delta: +$226/yr (+$19/mo · 23.9%)

ⓘ 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 3/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥93°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,019
• − Mortgage interest: −$6,996
• − Property taxes: −$946
• − Insurance: −$624
• − Repairs & maintenance: −$1,042
• − Management: −$1,042
• − Depreciation: −$3,633
• Taxable loss: −$1,265
• Est. tax savings @ 24.0%: +$303
• After-tax cash flow: $1,158/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: Lake Of The Woods School District
• NCES district ID: 2717570
• Math proficiency: 30% ▼ -9.00%
• Reading proficiency: 39% ▼ -9.00%
• Median HH income: $45,937
• Composite: 29.52/100
• National rank: #6498
• State rank: #259 of 301 in MN

Livability — Baudette

• Score: 73/100
• State rank: #243
• US rank: #5219

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Baudette, MN
• Population (ZIP): 2,684

Population outlook (Lake of the Woods County) Hauer SSP2

• Today (2025): 3,706 people
• By 2030: 3,565 · -3.8%
• By 2040: 3,224 · -13.0%
• By 2050: 2,957 · -20.2%
• By 2075: 2,685 · -27.5%
• By 2100: 2,544 · -31.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 7%
• Common ancestry: Portuguese 22% Scottish 6% Romanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 99% English-only · Spanish 1%

Political lean MEDSL · Lake of the Woods

• 2024 margin: Solid R (+47.1) · D 25.8% · R 72.9% · Other 1.4%
• 2008→2024 swing: -33.9pp toward R · 2008: -13.3pp · 2024: -47.1pp
• All cycles: 2024: R+47.1 2020: R+42.9 2016: R+44.3 2012: R+20.1 2008: R+13.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -32.47%
• Current HPI: 184.2846
• 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

+59.1% since first listed

10 events — show timeline

• 2026-04-21 Listed $124,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-25 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-19 Price Changed $126,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-05-12 Listed $129,000 NORTHSTARMLS as Distributed by MLS Grid
• 2017-08-06 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-08-05 Listed $67,000 NORTHSTARMLS as Distributed by MLS Grid
• 2016-04-19 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-01-26 Listed $78,500 NORTHSTARMLS as Distributed by MLS Grid
• 2016-01-11 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2015-12-08 Listed $78,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+1.9%/yr

Latest (2025): $946 · -13.1% YoY. Source: county tax records.