402 E North St

Waldorf, MN 56091

$144,900D

3 bd · 1.5 ba · 1,193 sqft · Built 1960 · SingleFamily · Active · 77 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,131/mo
• Mortgage (P&I): −$760
• Tax + insurance: −$242
• HOA: −$0
• Vac / Maint / Mgmt: −$238
• Net cashflow: $-108/mo
• Annual: $-1,290/yr
• Cap rate: 5.40%
• Cash-on-cash: -3.18%
• DSCR: 0.86
• 1% rule: 0.78%
• Cash to close: $40,572

Investor read

• This is a 3-bed/1.5-bath single-family listed at $145k.
• At list price, monthly cash flow is $-108 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $129k (10.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $113k (21.9% below list).
• It's been on market 77 days — a 6% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $113k (21.9% below list) — sets the bar for 1% rule.
• In year one you build about $12k of equity ($1k loan paydown + $11k appreciation (7.5% local appreciation)).
• Location reads 62/100 on livability (#698 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, crime D.
• Janesville-Waldorf-Pemberton (rural): math 44% / reading 49% proficiency, ranked #147 of 301 in MN (top 49%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Janesville-Waldorf-Pemberton El.Em. (math 62% / reading 52%, grade C+, #265 of 857 statewide, top 35%, 348 students, 34% FRL); Janesville-Waldorf-Pemberton Sec (math 27% / reading 42%, grade F, #306 of 471 statewide, top 70%, 349 students, 35% FRL).
• Market conditions: 4 active listings in the ZIP; 24 units permitted in Waseca County in 2024 (0 in 5+ unit buildings).
• By year 4, paydown + projected appreciation supports a ~$41k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• It's been on market 77 days. Have you received any prior offers? Is the seller open to a 22% concession, seller financing, or rate buy-down credit?
• Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.