1506 2nd St SE · Rochester, MN 55904

$112,000

2 bd · 1.0 ba · 544 sqft · SingleFamily public records · 22 Days on market

Built 1918 5,400 sqft lot

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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 +29.0/30.0
• DSCR +10.0/10.0
• 1% rule +7.5/10.0
• ARV discount +7.5/15.0
• Livability +4.6/5.0
• Schools +4.1/10.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Cute and ready to move into. Everything has been redone, shingles last year, painted inside and out, new carpet, new tile, new countertops. If you have been looking for an A+ clean one bedroom, this is the one!

Key facts

• Sewer line repaired
• Water heater
• Furnace

Tags

• NEW ROOF
• ELECTRICAL BREAKER BOX
• WATER HEATER
• FURNACE
• SEWER LINE REPAIRED
• WATER PIPES REPLACEMENT

Property features AI

Finance

• Other: Lot dimensions approximately 60 x 90 (5,400 sq ft); Above-grade finished area and main level finished area: 544; Below-grade area: 432; Total building area: 976; Storage shed listed as an additional structure

Exterior

• Parking: On-street parking only
• Utilities: City water (connected); City sewer (connected); 100 amp electrical service; Natural gas
• Home design: Residential property; One story; Entry on main level
• Construction: Constructed with block, concrete, and frame materials; Roof replaced or updated within the last 8 years; Built on stone foundation
• Exterior features: Wood exterior; Chain link and wood fencing; Storage shed; Medium tree coverage on lot; City street frontage (publicly maintained)

Interior

• Kitchen: Range; Refrigerator
• Bedrooms: 1 bedroom (main level) — 13 x 8
• Bathrooms: 1 full bath (main level)
• Heating & cooling: Forced air heating; No central cooling
• Interior features: Range; Refrigerator; Main floor full bathroom; Main floor bedroom; Main floor living room; Basement with block finish; Stone foundation

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $112k.

Deal economics

• At list price, monthly cash flow is $382 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $112k).
• Recommended offer: $110k (1.5% below list) — sets the bar for market timing.
• Cap rate 10.4% vs local median 3.5% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Riverside Central Elementary (math 12% / reading 22%, grade F, #771 of 857 statewide, top 91%, 417 students, 79% FRL); Century Senior High (math 37% / reading 67%, grade D+, #111 of 471 statewide, top 26%, 1,698 students, 31% FRL) — zoned schools average 55% FRL vs 31% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+2.1%/yr); 149 active listings in the ZIP; 21 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $774 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 2.1% rent growth), your $31k cash investment doubles in ~9 years — after that, you're playing with house money.

Negotiation context

• It's been on market 22 days — a 2% lower offer ($110k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 23y 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.
• Current owner paid $69k; list at $112k implies a 63% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1918 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $110,320 (1.5% below list)

Questions for the listing agent

1. Built in 1918 — 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 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?
4. 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.
5. 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.
6. 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: 1.25% ✓
• Cap rate: 10.39%
• Cash-on-cash: 14.64%
• DSCR: 1.65
• GRM: 6.7

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.1% rent growth · sell at horizon

5-year hold

• IRR: 4.1%
• Equity multiple: 1.16×
• Total profit: $4,947
• Equity at exit: $16,700

10-year hold

• IRR: 12.8%
• Equity multiple: 1.98×
• Total profit: $30,577
• Equity at exit: $9,684

Cash invested: $31,360 (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 55904

• Rents YoY: 2.1%
• Active inventory: 149
• Price-to-rent: 6.7×

Monthly cashflow live

• Estimated rent: $1,397 high
• Mortgage (P&I): −$587
• Tax from tax record: −$88 /mo · $1,050/yr
• Insurance: −$47
• HOA: −$0
• Vacancy / Maint / Mgmt: −$293
• Net cashflow: $382

Break-even live

Break-even rent $913

Max offer price $112,000

Occupancy floor 68%

Sensitivity live

Price	-10% $446	-5% $414	+0% $382	+5% $351	+10% $319
Rent	-10% $272	-5% $327	+0% $382	+5% $438	+10% $493
Rate	-1.0pp $439	-0.5pp $411	base $382	+0.5pp $353	+1.0pp $324

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: $28,000
• Closing costs: $3,360
• Reserves months: —
• Total cash needed: —

Rent comps 21 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1513 2nd St NE Rochester, MN	1.0	1.0	496	$1,150	$2.32	14d	1	0.34mi
223 8th Ave SE Unit 2 Rochester, MN	1.0	1.0	600	$975	$1.62	44d	1	0.49mi
28 6th Ave SE Unit 3 Rochester, MN	1.0	1.0	650	$1,050	$1.62	21d	1	0.60mi
504 E Center St Unit 2 Rochester, MN	1.0	1.0	675	$800	$1.19	44d	1	0.69mi
449 E Center St Rochester, MN	1.0–3.0	1.0–2.0	1165	$2,670	$2.29	14d	40	0.70mi
401 Broadway Ave N Rochester, MN	2.0	1.0–2.0	799	$1,977	$2.47	14d	22	1.11mi
28 7th St NE Rochester, MN	2.0	1.0–2.0	789	$2,750	$3.49	21d	18	1.12mi
400 1st Ave NW Rochester, MN	1.0–2.0	1.0–2.0	819	$1,510	$1.84	14d	7	1.15mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,148	$2.77	14d	91	1.16mi
511 3rd Ave SW Rochester, MN	2.0	1.0	647	$1,795	$2.77	14d	26	1.26mi
418 6th St SW Unit A418-929 Rochester, MN	1.0	1.0	400	$1,100	$2.75	21d	1	1.33mi
418 6th St SW Unit A418-936 Rochester, MN	1.0	1.0	500	$1,150	$2.30	44d	1	1.33mi
418 6th St SW Unit A418-924 Rochester, MN	1.0	1.0	500	$1,200	$2.40	21d	1	1.33mi
212 7th St NW Unit 3 Rochester, MN	1.0	1.0	350	$950	$2.71	44d	1	1.34mi
504 14th St SE #6 Rochester, MN	2.0	1.0	725	$995	$1.37	44d	1	1.38mi
1505 Marion Rd SE Rochester, MN	1.0–3.0	1.0–2.0	864	$1,428	$1.65	14d	1	1.38mi
1427 6th Ave SE Unit 4 Rochester, MN	1.0	1.0	650	$825	$1.27	44d	1	1.39mi
603 1st St SW Rochester, MN	2.0	1.0	512	$1,295	$2.53	14d	3	1.41mi
621 1st St SW Rochester, MN	1.0	1.0	525	$1,170	$2.23	14d	3	1.45mi
620 2nd St SW Rochester, MN	1.0	1.0	406	$995	$2.45	14d	11	1.46mi
625 3rd St SW Rochester, MN	1.0–2.0	1.0	612	$1,395	$2.28	14d	3	1.49mi

Listing history 16 events

1. 2026-06-13
   statusdays on market $112,000 Pending 22 DOM
2. 2026-06-10
   days on market $112,000 Active 21 DOM
3. 2026-06-09
   days on market $112,000 Active 20 DOM
4. 2026-06-08
   days on market $112,000 Active 19 DOM
5. 2026-06-07
   days on market $112,000 Active 18 DOM
6. 2026-06-05
   days on market $112,000 Active 15 DOM
7. 2026-06-03
   days on market $112,000 Active 14 DOM
8. 2026-06-02
   days on market $112,000 Active 13 DOM
9. 2026-06-01
   days on market $112,000 Active 12 DOM
10. 2026-05-31
    days on market $112,000 Active 11 DOM
11. 2026-05-30
    days on market $112,000 Active 10 DOM
12. 2026-05-20
    listed $112,000 Active
13. 2004-02-24
    soldstatus $68,845 210-char remark

    Show marketing remark (210 chars)

    Cute and ready to move into. Everything has been redone, shingles last year, painted inside and out, new carpet, new tile, new countertops. If you have been looking for an A+ clean one bedroom, this is the one!

14. 2004-02-13
    soldstatus $68,845
15. 2003-09-11
    listed $66,500 210-char remark

    Show marketing remark (210 chars)

    Cute and ready to move into. Everything has been redone, shingles last year, painted inside and out, new carpet, new tile, new countertops. If you have been looking for an A+ clean one bedroom, this is the one!

16. 1983-09-01
    soldstatus $14,500

ⓘ 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: $1,050 · $88/mo
• Projected year-2 tax: $1,152 · $96/mo
• Expected delta: +$102/yr (+$9/mo · 9.7%)

ⓘ 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 ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $16,770
• − Mortgage interest: −$6,274
• − Property taxes: −$1,050
• − Insurance: −$560
• − Repairs & maintenance: −$1,342
• − Management: −$1,342
• − Depreciation: −$3,258
• Taxable income: $2,945
• Est. tax owed @ 24.0%: −$707
• After-tax cash flow: $3,883/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 29,639
• Household income: $77,016
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 864.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 10% Hispanic / Latino 8% Two or more races 5% Asian 3%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Portuguese 11% Lithuanian 2% Italian 2%
• Foreign-born: 11% · Canada, China, Vietnam
• Languages at home: 84% English-only · Spanish 5% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -161.04%
• Current HPI: 267.168
• Rent YoY: ▲ 2.10%
• Metro: Rochester, MN
• 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

+672.4% since first listed

5 events — show timeline

• 2026-05-20 Listed $112,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-02-24 Sold (MLS) $68,845 NORTHSTARMLS as Distributed by MLS Grid
• 2004-02-13 Sold (Public Records) $68,845 Public Records
• 2003-09-11 Listed $66,500 NORTHSTARMLS as Distributed by MLS Grid
• 1983-09-01 Sold (Public Records) $14,500 Public Records

Property tax history

+6.5%/yr

Latest (2025): $1,050 · +4.8% YoY. Source: county tax records.