503 Lake Ave · Park Rapids, MN 56470

$30,000

3 bd · 1.0 ba · 871 sqft · SingleFamily public records · 267 Days on market

Built 1914 6,969 sqft lot ↓ 50% since listing

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Why this score? — see what drove the B+ 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Appreciation +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.7/5.0
• Schools +3.6/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Bring your finishing ideas to this 2 bedroom home and bring it back to its original beauty. Main floor laundry, main floor bathroom, decent size kitchen with a main floor bedroom and another bedroom up and a sitting area in the upper level as well, Home needs work. It does have a newer roof on. It has tons of potential hurry up and view this one today.

Key facts

• Decent size kitchen
• Newer roof
• Main floor laundry

Tags

• MAIN FLOOR LAUNDRY
• MAIN FLOOR BATHROOM
• DECENT SIZE KITCHEN
• NEWER ROOF

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $30k.

Deal economics

• At list price, monthly cash flow is $430 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($851 rent vs $30k).
• Recommended offer: $26k (12.0% below list) — sets the bar for market timing.
• Cap rate 23.5% vs local median 2.1% in Park Rapids — 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 (#240 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, crime D, employment D.
• Park Rapids Public School District (rural): math 37% / reading 48% proficiency, ranked #206 of 301 in MN (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 129 active listings in the ZIP; 27 units permitted in Hubbard County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $3k of equity ($207 loan paydown + $3k appreciation (10.0% local appreciation)).
• Hubbard County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $8k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 267 days — a 12% lower offer ($26k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: property tax is 2.9% of price; built in 1914 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $26,400 (12.0% below list)

Questions for the listing agent

1. It's been on market 267 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Built in 1914 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
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: 2.84% ✓
• Cap rate: 23.49%
• Cash-on-cash: 61.41%
• DSCR: 3.73
• GRM: 2.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 73.5%
• Equity multiple: 6.21×
• Total profit: $43,754
• Equity at exit: $27,026

10-year hold

• IRR: 67.4%
• Equity multiple: 13.78×
• Total profit: $107,384
• Equity at exit: $58,283

Cash invested: $8,400 (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 56470

• Home prices YoY: 5.8%
• Active inventory: 129
• Price-to-rent: 2.9×

Monthly cashflow live

• Estimated rent: $851 medium
• Mortgage (P&I): −$157
• Tax from tax record: −$72 /mo · $868/yr
• Insurance: −$12
• HOA: −$0
• Vacancy / Maint / Mgmt: −$179
• Net cashflow: $430

Break-even live

Break-even rent $307

Max offer price $30,000

Occupancy floor 44%

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: $7,500
• Closing costs: $900
• Reserves months: —
• Total cash needed: —

Listing history 19 events

1. 2026-06-18
   days on market $30,000 Active 267 DOM
2. 2026-06-17
   days on market $30,000 Active 266 DOM
3. 2026-06-16
   days on market $30,000 Active 265 DOM
4. 2026-06-15
   days on market $30,000 Active 264 DOM
5. 2026-06-13
   days on market $30,000 Active 262 DOM
6. 2026-06-12
   days on market $30,000 Active 261 DOM
7. 2026-06-09
   days on market $30,000 Active 258 DOM
8. 2026-06-08
   days on market $30,000 Active 257 DOM
9. 2026-06-07
   days on market $30,000 Active 256 DOM
10. 2026-06-07
    days on market $30,000 Active 255 DOM
11. 2026-06-04
    days on market $30,000 Active 252 DOM
12. 2026-06-02
    days on market $30,000 Active 251 DOM
13. 2026-06-01
    days on market $30,000 Active 250 DOM
14. 2026-05-31
    days on market $30,000 Active 249 DOM
15. 2026-05-31
    days on market $30,000 Active 248 DOM
16. 2026-05-14
    price $30,000 354-char remark

    Show marketing remark (354 chars)

    Bring your finishing ideas to this 2 bedroom home and bring it back to its original beauty. Main floor laundry, main floor bathroom, decent size kitchen with a main floor bedroom and another bedroom up and a sitting area in the upper level as well, Home needs work. It does have a newer roof on. It has tons of potential hurry up and view this one today.

17. 2026-04-15
    price $39,000 354-char remark

    Show marketing remark (354 chars)

    Bring your finishing ideas to this 2 bedroom home and bring it back to its original beauty. Main floor laundry, main floor bathroom, decent size kitchen with a main floor bedroom and another bedroom up and a sitting area in the upper level as well, Home needs work. It does have a newer roof on. It has tons of potential hurry up and view this one today.

18. 2026-01-14
    price $49,000 354-char remark

    Show marketing remark (354 chars)

    Bring your finishing ideas to this 2 bedroom home and bring it back to its original beauty. Main floor laundry, main floor bathroom, decent size kitchen with a main floor bedroom and another bedroom up and a sitting area in the upper level as well, Home needs work. It does have a newer roof on. It has tons of potential hurry up and view this one today.

19. 2025-09-23
    listed $60,000 Active 354-char remark

    Show marketing remark (354 chars)

    Bring your finishing ideas to this 2 bedroom home and bring it back to its original beauty. Main floor laundry, main floor bathroom, decent size kitchen with a main floor bedroom and another bedroom up and a sitting area in the upper level as well, Home needs work. It does have a newer roof on. It has tons of potential hurry up and view this one today.

ⓘ 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: $868 · $72/mo
• Projected year-2 tax: $868 · $72/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 0% chance over 30 yrs
• 🔥 Wildfire 4/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥94°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,209
• − Mortgage interest: −$1,680
• − Property taxes: −$868
• − Insurance: −$150
• − Repairs & maintenance: −$817
• − Management: −$817
• − Depreciation: −$873
• Taxable income: $5,004
• Est. tax owed @ 24.0%: −$1,201
• After-tax cash flow: $3,958/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: Park Rapids Public School District
• NCES district ID: 2728080
• Math proficiency: 37% ▼ -9.00%
• Reading proficiency: 48% ▼ -3.00%
• Median HH income: $45,641
• Composite: 36.11/100
• National rank: #4751
• State rank: #206 of 301 in MN

Livability — Park Rapids

• Score: 73/100
• State rank: #240
• US rank: #5130

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: Park Rapids, MN
• Population (ZIP): 10,859

Population outlook (Hubbard County) Hauer SSP2

• Today (2025): 20,512 people
• By 2030: 20,275 · -1.2%
• By 2040: 19,429 · -5.3%
• By 2050: 18,093 · -11.8%
• By 2075: 14,903 · -27.3%
• By 2100: 10,994 · -46.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 4% Hispanic / Latino 2%
• Common ancestry: Portuguese 16% Romanian 3% Lithuanian 2%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 1%

Political lean MEDSL · Hubbard

• 2024 margin: Solid R (+31.5) · D 33.4% · R 64.9% · Other 1.7%
• 2008→2024 swing: -17.0pp toward R · 2008: -14.5pp · 2024: -31.5pp
• All cycles: 2024: R+31.5 2020: R+28.8 2016: R+33.6 2012: R+16.9 2008: R+14.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 15.99%
• Current HPI: 294.1751
• 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

-50.0% since first listed

4 events — show timeline

• 2026-05-14 Price Changed $30,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-15 Price Changed $39,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-14 Price Changed $49,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-23 Listed $60,000 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+5.7%/yr

Latest (2025): $868 · -2.9% YoY. Source: county tax records.