20828 Iran Ave

Lakeville, MN 55044

$459,900D

4 bd · 3.0 ba · 2,086 sqft · Built 1992 · SingleFamily · Pending · 23 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,017/mo
• Mortgage (P&I): −$2,412
• Tax + insurance: −$616
• HOA: −$0
• Vac / Maint / Mgmt: −$634
• Net cashflow: $-644/mo
• Annual: $-7,734/yr
• Cap rate: 4.61%
• Cash-on-cash: -6.01%
• DSCR: 0.73
• 1% rule: 0.66%
• Cash to close: $128,772

Investor read

• This is a 4-bed/3.0-bath single-family listed at $460k.
• At list price, monthly cash flow is $-644 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $346k (24.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $302k (34.4% below list).
• It's been on market 23 days — a 2% lower offer ($453k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $302k (34.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 84/100 on livability (#25 in MN, #711 nationally) — a professional / high-income tenant draw. Strengths: crime A+, employment A+, housing A+; Watch: amenities D+, commute F, cost of living F.
• Lakeville Public School District (suburban): math 57% / reading 65% proficiency, ranked #21 of 301 in MN (top 7%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 10% free/reduced lunch — higher-income household profile.
• Zoned schools: Lakeview Elementary (math 64% / reading 73%, grade B+, #91 of 857 statewide, top 11%, 521 students, 21% FRL); Mcguire Middle (math 52% / reading 59%, grade B-, #43 of 258 statewide, top 17%, 865 students, 20% FRL); Lakeville South High (math 51% / reading 67%, grade C+, #53 of 471 statewide, top 11%, 1,906 students, 24% FRL).
• Market conditions: Rents rising (+3.4%/yr); 719 active listings in the ZIP; 1 comparable units currently listed for rent nearby; high-income renter base; 2,134 units permitted in Dakota County in 2024 (898 in 5+ unit buildings).
• Dakota County population projected at +11% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 14 sale attempts since 33y 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.
• Cap rate 4.6% vs local median 3.2% in Lakeville — 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.

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 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?
• 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.