627 W 1st St S · Cottonwood, MN 56229

$150,000

5 bd · 3.0 ba · 3,102 sqft · SingleFamily · 11 Days on market

Built 1910 0.38 ac lot

---

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 +15.2/30.0
• ARV discount +7.5/15.0
• DSCR +4.7/10.0
• 1% rule +4.6/10.0
• Schools +4.6/10.0
• Livability +3.6/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

4 bedroom, 2.5 bath home located on a corner lot. The backyard is very private and includes a large strip of grove. The kitchen has plenty of cupboard space and casual dining. There is another dining room off the living room. With 3 levels of finished living area this home has space for everyone. Both sheds and the pool will stay with the property. Water heater new in 2013. Water softener and sump pump new within the last year.

Key facts

• 0.38 acre lot
• 2 garage spots
• Built 1910

Property features AI

Exterior

• Parking: Attached garage (concrete) with 2 car spaces; Garage dimensions approximately 24 x 22, 7' door height, 12' door width
• Utilities: City water (connected); City sewer (connected); Electric with circuit breakers; Natural gas
• Home design: Residential property; Two levels; Sun room; Above-grade finished area and additional finished below-grade area
• Construction: Block foundation; Asphalt roof (age 8 years or less)
• Exterior features: Covered patio/porch and deck; Patio; Vinyl exterior; Storage shed; Lot approximately 0.385 acres (120 x 140)

Interior

• Kitchen: Dishwasher; Range; Refrigerator; Water softener (owned)
• Bedrooms: 5 bedrooms total; Bedroom (Main level); Bedroom 2 (Upper level); Bedroom 3 (Upper level); Bedroom 4 (Upper level); Bedroom 5 (Lower level); Flex room (Main level)
• Flooring: Hardwood floors
• Bathrooms: One full bathroom (Upper level); One three-quarter bathroom (Basement); One half bathroom (Main level)
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished full basement with storage space and walkout; Ceiling fan(s); Sun room; Informal dining room; Fireplace (1)
• Laundry & utility: Laundry in basement; Utility room (Lower level)

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath single-family listed at $150k.

Deal economics

• At list price, monthly cash flow is $53 ($640/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 $144k (4.0% below list).
• Recommended offer: $144k (4.0% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 72/100 on livability (#294 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety D+, amenities F, commute F.
• Lakeview School District (rural): math 51% / reading 55% proficiency, ranked #81 of 301 in MN (top 27%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Lakeview Elementary (math 57% / reading 62%, grade B-, #216 of 857 statewide, top 29%, 398 students, 42% FRL); Lakeview Secondary (math 42% / reading 47%, grade F, #189 of 471 statewide, top 44%, 315 students, 33% FRL) — zoned schools average 38% FRL vs 21% district-wide (17 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 4 active listings in the ZIP; 91 units permitted in Lyon County in 2024 (72 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Lyon County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 11 days on market — expect competitive offers; lowballing is unlikely to land.
• 4 sale attempts since 13y 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 1910 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $144,007 (4.0% below list)

Questions for the listing agent

1. Built in 1910 — 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 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?
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: 0.96% ✗
• Cap rate: 6.72%
• Cash-on-cash: 1.52%
• DSCR: 1.07
• GRM: 8.7

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: -13.8%
• Equity multiple: 0.50×
• Total profit: $-20,856
• Equity at exit: $22,365

10-year hold

• IRR: -4.9%
• Equity multiple: 0.68×
• Total profit: $-13,577
• Equity at exit: $12,969

Cash invested: $42,000 (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 56229

• Home prices YoY: -28.3%
• Active inventory: 4
• Price-to-rent: 8.7×

Monthly cashflow live

• Estimated rent: $1,440 medium
• Mortgage (P&I): −$787
• Tax from tax record: −$235 /mo · $2,822/yr
• Insurance: −$62
• HOA: −$0
• Vacancy / Maint / Mgmt: −$302
• Net cashflow: $53

Break-even live

Break-even rent $1,373

Max offer price $150,000

Occupancy floor 91%

Sensitivity live

Price	-10% $138	-5% $96	+0% $53	+5% $11	+10% $-32
Rent	-10% $-60	-5% $-4	+0% $53	+5% $110	+10% $167
Rate	-1.0pp $129	-0.5pp $92	base $53	+0.5pp $15	+1.0pp $-25

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: $37,500
• Closing costs: $4,500
• Reserves months: —
• Total cash needed: —

Listing history 16 events

1. 2026-05-06
   status Pending
2. 2026-04-29
   historical Contingent - Inspection
3. 2026-04-25
   listed $150,000 Active
4. 2026-04-21
   historical $150,000
5. 2019-02-02
   historical 431-char remark

   Show marketing remark (391 chars)

   Have the convenience of living in town with the feel of being in the country. This 4 bedroom, 3 bath home is located on a corner lot and includes a large strip of grove. Comfortable, large kitchen with casual dining. There is another dining room off the living room. Den/study on the main floor could be a bedroom. Plenty of storage area above the garage and kitchen. New water heater 10/13.

6. 2019-02-02
   historical 391-char remark

   Show marketing remark (391 chars)

   Have the convenience of living in town with the feel of being in the country. This 4 bedroom, 3 bath home is located on a corner lot and includes a large strip of grove. Comfortable, large kitchen with casual dining. There is another dining room off the living room. Den/study on the main floor could be a bedroom. Plenty of storage area above the garage and kitchen. New water heater 10/13.

7. 2016-02-17
   soldstatus $140,000
8. 2016-02-17
   soldstatus $132,000
9. 2016-02-16
   soldstatus $132,000 431-char remark

   Show marketing remark (431 chars)

   4 bedroom, 2.5 bath home located on a corner lot. The backyard is very private and includes a large strip of grove. The kitchen has plenty of cupboard space and casual dining. There is another dining room off the living room. With 3 levels of finished living area this home has space for everyone. Both sheds and the pool will stay with the property. Water heater new in 2013. Water softener and sump pump new within the last year.

10. 2015-08-06
    listed $139,000 431-char remark

    Show marketing remark (431 chars)

    4 bedroom, 2.5 bath home located on a corner lot. The backyard is very private and includes a large strip of grove. The kitchen has plenty of cupboard space and casual dining. There is another dining room off the living room. With 3 levels of finished living area this home has space for everyone. Both sheds and the pool will stay with the property. Water heater new in 2013. Water softener and sump pump new within the last year.

11. 2014-05-09
    soldstatus $140,100
12. 2014-05-08
    soldstatus $140,000 391-char remark

    Show marketing remark (391 chars)

    Have the convenience of living in town with the feel of being in the country. This 4 bedroom, 3 bath home is located on a corner lot and includes a large strip of grove. Comfortable, large kitchen with casual dining. There is another dining room off the living room. Den/study on the main floor could be a bedroom. Plenty of storage area above the garage and kitchen. New water heater 10/13.

13. 2014-05-08
    soldstatus $140,000 Sold

    Show marketing remark (391 chars)

    Have the convenience of living in town with the feel of being in the country. This 4 bedroom, 3 bath home is located on a corner lot and includes a large strip of grove. Comfortable, large kitchen with casual dining. There is another dining room off the living room. Den/study on the main floor could be a bedroom. Plenty of storage area above the garage and kitchen. New water heater 10/13.

14. 2014-04-05
    status Pending
15. 2014-02-26
    listed $144,900 Active
16. 2013-07-26
    listed $144,900 391-char remark

    Show marketing remark (391 chars)

    Have the convenience of living in town with the feel of being in the country. This 4 bedroom, 3 bath home is located on a corner lot and includes a large strip of grove. Comfortable, large kitchen with casual dining. There is another dining room off the living room. Den/study on the main floor could be a bedroom. Plenty of storage area above the garage and kitchen. New water heater 10/13.

ⓘ 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: $2,822 · $235/mo
• Projected year-2 tax: $2,822 · $235/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 ≥100°F today · 14 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: $17,281
• − Mortgage interest: −$8,402
• − Property taxes: −$2,822
• − Insurance: −$750
• − Repairs & maintenance: −$1,382
• − Management: −$1,382
• − Depreciation: −$4,364
• Taxable loss: −$1,822
• Est. tax savings @ 24.0%: +$437
• After-tax cash flow: $1,078/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: Lakeview School District
• NCES district ID: 2700088
• Math proficiency: 51% ▼ -7.00%
• Reading proficiency: 55% ▼ -10.00%
• Median HH income: $55,887
• Composite: 45.83/100
• National rank: #2555
• State rank: #81 of 301 in MN

Livability — Cottonwood

• Score: 72/100
• State rank: #294
• US rank: #6410

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Cottonwood, MN
• Population (ZIP): 1,729

Population outlook (Lyon County) Hauer SSP2

• Today (2025): 25,369 people
• By 2030: 24,890 · -1.9%
• By 2040: 23,599 · -7.0%
• By 2050: 22,383 · -11.8%
• By 2075: 20,076 · -20.9%
• By 2100: 18,901 · -25.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (95%)
• Race & ethnicity: White 95% Two or more races 3% Hispanic / Latino 2%
• Common ancestry: Portuguese 22% English 10% Iranian 3%
• Foreign-born: 1% · Canada, Jamaica
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Lyon

• 2024 margin: Solid R (+31.8) · D 33.1% · R 64.9% · Other 2.0%
• 2008→2024 swing: -30.2pp toward R · 2008: -1.6pp · 2024: -31.8pp
• All cycles: 2024: R+31.8 2020: R+25.9 2016: R+28.3 2012: R+9.2 2008: R+1.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -64.34%
• Current HPI: 163.0646
• 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

+3.5% since first listed

16 events — show timeline

• 2026-05-06 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-29 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-25 Listed $150,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-21 Coming Soon $150,000 NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2019-02-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-02-17 Sold (Public Records) $132,000 Public Records
• 2016-02-17 Sold (Public Records) $140,000 Public Records
• 2016-02-16 Sold (MLS) $132,000 NORTHSTARMLS as Distributed by MLS Grid
• 2015-08-06 Listed $139,000 NORTHSTARMLS as Distributed by MLS Grid
• 2014-05-09 Sold (Public Records) $140,100 Public Records
• 2014-05-08 Sold (MLS) $140,000 NORTHSTARMLS as Distributed by MLS Grid
• 2014-05-08 Sold (MLS) $140,000 NORTHSTARMLS as Distributed by MLS Grid
• 2014-04-05 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2014-02-26 Listed $144,900 NORTHSTARMLS as Distributed by MLS Grid
• 2013-07-26 Listed $144,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+7.1%/yr

Latest (2026): $2,822 · +8.7% YoY. Source: county tax records.