1702 1st Ave · International Falls, MN 56649

$89,000

1 bd · 2.0 ba · 480 sqft · SingleFamily public records · 69 Days on market

Built 1927 0.33 ac lot $185/sqft · 121% above area Est $80k · 11% over

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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 +14.8/30.0
• DSCR +4.5/10.0
• Livability +3.7/5.0
• 1% rule +3.6/10.0
• Schools +3.6/10.0
• ARV discount +2.7/15.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Opportunity awaits with this unique property situated on a corner lot. Currently used as a residential home, this property features a 2-story house with 1 bedroom (potential for a second), 1 full bath on the main floor and a partial bath upstairs. The property includes a spacious 28x29 detached 2-stall garage and an additional 8x10 shed, providing ample storage and workspace. Property is zoned commercial, offering potential for future business or investment use. Great opportunity for investors, renovators, or those looking for a property with flexibility and potential.

Key facts

• 2 story house
• Corner lot
• Zoned commercial

Tags

• CORNER LOT
• 2 STORY HOUSE
• DETACHED GARAGE
• ADDITIONAL SHED
• ZONED COMMERCIAL

What this means for you Summary

Snapshot

• This is a 1-bed/2.0-bath single-family listed at $89k.

Deal economics

• At list price, monthly cash flow is $24 ($292/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 $77k (13.6% below list).
• Recommended offer: $77k (13.6% below list) — sets the bar for 1% rule.
• Cap rate 6.6% vs local median 4.5% in International Falls — 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 73/100 on livability (#242 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: crime F, amenities D-, commute F.
• International Falls School District (town): math 40% / reading 45% proficiency, ranked #211 of 301 in MN (top 70%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Falls Elementary (math 52% / reading 52%, grade C-, #368 of 857 statewide, top 47%, 393 students, 49% FRL); Falls Secondary (math 32% / reading 41%, grade F, #298 of 471 statewide, top 63%, 501 students, 38% FRL).
• Market conditions: 70 active listings in the ZIP; 26 units permitted in Koochiching County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $615 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Koochiching County population projected at -27% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 69 days — a 6% lower offer ($84k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts 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 1927 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $76,897 (13.6% below list)

Questions for the listing agent

1. It's been on market 69 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
2. Built in 1927 — 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 F 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: 0.86% ✗
• Cap rate: 6.62%
• Cash-on-cash: 1.17%
• DSCR: 1.05
• GRM: 9.6

CMA / ARV

• ARV (median comp): $80,364
• List price: $89,000
• Delta: 10.75%
• Verdict: OVERPRICED
• Comps: 5 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -14.4%
• Equity multiple: 0.48×
• Total profit: $-12,879
• Equity at exit: $13,270

10-year hold

• IRR: -5.7%
• Equity multiple: 0.63×
• Total profit: $-9,251
• Equity at exit: $7,695

Cash invested: $24,920 (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 56649

• Home prices YoY: -22.7%
• Active inventory: 70
• Price-to-rent: 9.6×

Monthly cashflow live

• Estimated rent: $769 medium
• Mortgage (P&I): −$467
• Tax from tax record: −$79 /mo · $952/yr
• Insurance: −$37
• HOA: −$0
• Vacancy / Maint / Mgmt: −$161
• Net cashflow: $24

Break-even live

Break-even rent $738

Max offer price $89,000

Occupancy floor 92%

Sensitivity live

Price	-10% $75	-5% $50	+0% $24	+5% $-1	+10% $-26
Rent	-10% $-36	-5% $-6	+0% $24	+5% $55	+10% $85
Rate	-1.0pp $69	-0.5pp $47	base $24	+0.5pp $1	+1.0pp $-22

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: $22,250
• Closing costs: $2,670
• Reserves months: —
• Total cash needed: —

Listing history 19 events

1. 2026-06-21
   days on market $89,000 Active 69 DOM
2. 2026-06-21
   days on market $89,000 Active 68 DOM
3. 2026-06-18
   days on market $89,000 Active 66 DOM
4. 2026-06-17
   days on market $89,000 Active 65 DOM
5. 2026-06-16
   days on market $89,000 Active 64 DOM
6. 2026-06-15
   days on market $89,000 Active 63 DOM
7. 2026-06-13
   days on market $89,000 Active 61 DOM
8. 2026-06-12
   days on market $89,000 Active 60 DOM
9. 2026-06-09
   days on market $89,000 Active 57 DOM
10. 2026-06-08
    days on market $89,000 Active 56 DOM
11. 2026-06-07
    days on market $89,000 Active 55 DOM
12. 2026-06-07
    days on market $89,000 Active 54 DOM
13. 2026-06-04
    days on market $89,000 Active 51 DOM
14. 2026-06-02
    days on market $89,000 Active 50 DOM
15. 2026-06-01
    days on market $89,000 Active 49 DOM
16. 2026-05-31
    days on market $89,000 Active 48 DOM
17. 2026-05-31
    days on market $89,000 Active 47 DOM
18. 2026-04-13
    listed $92,900 Active 575-char remark

    Show marketing remark (575 chars)

    Opportunity awaits with this unique property situated on a corner lot. Currently used as a residential home, this property features a 2-story house with 1 bedroom (potential for a second), 1 full bath on the main floor and a partial bath upstairs. The property includes a spacious 28x29 detached 2-stall garage and an additional 8x10 shed, providing ample storage and workspace. Property is zoned commercial, offering potential for future business or investment use. Great opportunity for investors, renovators, or those looking for a property with flexibility and potential.

19. 2026-04-13
    listed $92,900 Active 575-char remark

    Show marketing remark (575 chars)

    Opportunity awaits with this unique property situated on a corner lot. Currently used as a residential home, this property features a 2-story house with 1 bedroom (potential for a second), 1 full bath on the main floor and a partial bath upstairs. The property includes a spacious 28x29 detached 2-stall garage and an additional 8x10 shed, providing ample storage and workspace. Property is zoned commercial, offering potential for future business or investment use. Great opportunity for investors, renovators, or those looking for a property with flexibility and potential.

ⓘ 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: $952 · $79/mo
• Projected year-2 tax: $974 · $81/mo
• Expected delta: +$22/yr (+$2/mo · 2.4%)

ⓘ 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 1/10 Low 7 d/yr ≥91°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $9,228
• − Mortgage interest: −$4,985
• − Property taxes: −$952
• − Insurance: −$445
• − Repairs & maintenance: −$738
• − Management: −$738
• − Depreciation: −$2,589
• Taxable loss: −$1,220
• Est. tax savings @ 24.0%: +$293
• After-tax cash flow: $585/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: International Falls School District
• NCES district ID: 2715000
• Math proficiency: 40% ▼ -14.00%
• Reading proficiency: 45% ▼ -18.00%
• Median HH income: $42,926
• Composite: 35.88/100
• National rank: #4813
• State rank: #211 of 301 in MN

Livability — International Falls

• Score: 73/100
• State rank: #242
• US rank: #5197

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: International Falls, MN
• Population (ZIP): 8,895

Population outlook (Koochiching County) Hauer SSP2

• Today (2025): 11,977 people
• By 2030: 11,406 · -4.8%
• By 2040: 10,045 · -16.1%
• By 2050: 8,746 · -27.0%
• By 2075: 6,363 · -46.9%
• By 2100: 4,275 · -64.3%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Two or more races 7% Native American 2% Hispanic / Latino 2%
• Common ancestry: Portuguese 20% Lithuanian 5% Romanian 3%
• Foreign-born: 3% · Canada
• Languages at home: 98% English-only · Spanish 1%

Political lean MEDSL · Koochiching

• 2024 margin: Strong R (+25.7) · D 36.4% · R 62.0% · Other 1.6%
• 2008→2024 swing: -35.8pp toward R · 2008: 10.1pp · 2024: -25.7pp
• All cycles: 2024: R+25.7 2020: R+21.3 2016: R+20.0 2012: D+9.5 2008: D+10.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -51.62%
• Current HPI: 176.118
• 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

+0.0% since first listed

2 events — show timeline

• 2026-04-13 Listed $92,900 RAOR
• 2026-04-13 Listed $92,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+7.5%/yr

Latest (2026): $952 · +36.0% YoY. Source: county tax records.