227 W 2nd St · Blue Earth, MN 56013

$123,500

5 bd · 1.5 ba · 1,718 sqft · SingleFamily public records · 16 Days on market

Built 1900 7,405 sqft lot Est $115k · 7% over

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Why this score? — see what drove the C+ 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 +22.6/30.0
• Appreciation +10.0/10.0
• DSCR +7.2/10.0
• 1% rule +5.4/10.0
• ARV discount +4.2/15.0
• Livability +3.7/5.0
• Schools +3.1/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0

Listing remarks MLS

Located on a corner lot, this two story home has great living space and abundant storage. Eat in kitchen, formal dining room, front entry, one or two bedrooms and 3/4 bathroom on maiin. Three bedrooms and full bath on 2nd. Big screened-in porch off the kitchen, flagstone patio, steel siding, 100 amp circuit breakers, Central air, two storage sheds, single garage w/ shop area & 2nd floor storage. Very reasonably priced and move-in ready.

Key facts

• Fenced in yard
• 7,405 sq ft lot
• Garage

Tags

• FENCED IN YARD

Property features AI

Finance

• Other: Property listed by OLSON NELSON REALTY

Exterior

• Parking: Detached 1-car garage
• Security: Smoke detector(s)
• Utilities: Public water; Public sewer
• Home design: Residential single family residence
• Construction: Vinyl siding; Asphalt roof; Has basement (partial, unfinished)
• Exterior features: Corner lot; Publicly maintained road

Interior

• Kitchen: Cooktop; Range; Refrigerator; Eat-in kitchen
• Bedrooms: Bedrooms (details not provided)
• Flooring: Hardwood
• Bathrooms: 1 full bathroom; 1 three-quarter bathroom
• Heating & cooling: Forced air heating (natural gas); Central air; Ceiling fan(s)
• Interior features: Eat-in kitchen; Walk-in closet(s); Window coverings; Unfinished partial basement
• Laundry & utility: Washer; Dryer; Gas water heater; Water softener

What this means for you Summary

Snapshot

• This is a 5-bed/1.5-bath single-family listed at $124k.

Deal economics

• At list price, monthly cash flow is $209 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $124k).
• Recommended offer: $122k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 73/100 on livability (#259 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, amenities F, commute F.
• Blue Earth Area Public School (town): math 29% / reading 44% proficiency, ranked #245 of 301 in MN (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 36 active listings in the ZIP; 4 units permitted in Faribault County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $13k of equity ($854 loan paydown + $12k appreciation (10.0% local appreciation)).
• Faribault County population projected at -11% 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 $35k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 3, 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 16 days — a 2% lower offer ($122k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 11y 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 $38k; list at $124k implies a 225% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $121,647 (1.5% below list)

Questions for the listing agent

1. Built in 1900 — 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. 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.
4. 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.
5. 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: 1.04% ✓
• Cap rate: 8.33%
• Cash-on-cash: 7.27%
• DSCR: 1.32
• GRM: 8.0

CMA / ARV

• ARV (on-the-fly): $115,106
• Comps found: 3

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
227 W 2nd St	0.00mi	5/2.0	1,718 (0%)	1mo	$115,000	$67	97
323 E 11th St	0.69mi	4/1.5 (-1)	1,796 (+4%)	3mo	$165,000	$92	52
306 W 5th St	0.18mi	4/2.0 (-1)	1,975 (+15%)	20mo	$59,500	$30	43

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: 29.6%
• Equity multiple: 3.33×
• Total profit: $80,588
• Equity at exit: $111,259

10-year hold

• IRR: 25.6%
• Equity multiple: 7.56×
• Total profit: $226,812
• Equity at exit: $239,933

Cash invested: $34,580 (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 56013

• Home prices YoY: 6.7%
• Active inventory: 36
• Price-to-rent: 8.0×

Monthly cashflow live

• Estimated rent: $1,286 medium
• Mortgage (P&I): −$648
• Tax from tax record: −$108 /mo · $1,294/yr
• Insurance: −$51
• HOA: −$0
• Vacancy / Maint / Mgmt: −$270
• Net cashflow: $209

Break-even live

Break-even rent $1,021

Max offer price $123,500

Occupancy floor 79%

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: $30,875
• Closing costs: $3,705
• Reserves months: —
• Total cash needed: —

Listing history 6 events

1. 2026-05-09
   status Pending
2. 2026-05-03
   historical Active Under Contract
3. 2026-04-23
   listed $123,500 Active
4. 2017-12-29
   soldstatus $38,000 446-char remark

   Show marketing remark (446 chars)

   Located on a corner lot, this two story home has great living space and abundant storage. Eat in kitchen, formal dining room, front entry, one or two bedrooms and 3/4 bathroom on maiin. Three bedrooms and full bath on 2nd. Big screened-in porch off the kitchen, flagstone patio, steel siding, 100 amp circuit breakers, Central air, two storage sheds, single garage w/ shop area & 2nd floor storage. Very reasonably priced and move-in ready.

5. 2015-01-27
   listed $48,500 446-char remark

   Show marketing remark (446 chars)

   Located on a corner lot, this two story home has great living space and abundant storage. Eat in kitchen, formal dining room, front entry, one or two bedrooms and 3/4 bathroom on maiin. Three bedrooms and full bath on 2nd. Big screened-in porch off the kitchen, flagstone patio, steel siding, 100 amp circuit breakers, Central air, two storage sheds, single garage w/ shop area & 2nd floor storage. Very reasonably priced and move-in ready.

6. 1991-11-01
   soldstatus $31,000

ⓘ 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: $1,294 · $108/mo
• Projected year-2 tax: $1,339 · $112/mo
• Expected delta: +$45/yr (+$4/mo · 3.4%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $15,438
• − Mortgage interest: −$6,918
• − Property taxes: −$1,294
• − Insurance: −$618
• − Repairs & maintenance: −$1,235
• − Management: −$1,235
• − Depreciation: −$3,593
• Taxable income: $546
• Est. tax owed @ 24.0%: −$131
• After-tax cash flow: $2,382/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: Blue Earth Area Public School
• NCES district ID: 2700130
• Math proficiency: 29% ▼ -19.00%
• Reading proficiency: 44% ▼ -10.00%
• Median HH income: $44,434
• Composite: 31.0/100
• National rank: #6095
• State rank: #245 of 301 in MN

Livability — Blue Earth

• Score: 73/100
• State rank: #259
• US rank: #5617

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Blue Earth, MN
• Population (ZIP): 4,534

Population outlook (Faribault County) Hauer SSP2

• Today (2025): 13,474 people
• By 2030: 13,112 · -2.7%
• By 2040: 12,454 · -7.6%
• By 2050: 11,973 · -11.1%
• By 2075: 11,565 · -14.2%
• By 2100: 10,844 · -19.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 10% Two or more races 7% Asian 1%
• Hispanic origin (detail): Mexican 10%
• Common ancestry: Portuguese 23% Scottish 5% Iranian 3%
• Foreign-born: 3% · Canada
• Languages at home: 92% English-only · Spanish 6% Other Asian/Pacific 1%

Political lean MEDSL · Faribault

• 2024 margin: Solid R (+37.4) · D 30.4% · R 67.8% · Other 1.8%
• 2008→2024 swing: -31.8pp toward R · 2008: -5.6pp · 2024: -37.4pp
• All cycles: 2024: R+37.4 2020: R+33.6 2016: R+34.1 2012: R+9.1 2008: R+5.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 15.36%
• Current HPI: 244.2912
• 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

+298.4% since first listed

6 events — show timeline

• 2026-05-09 Pending — RASM
• 2026-05-03 Contingent — RASM
• 2026-04-23 Listed $123,500 RASM
• 2017-12-29 Sold (MLS) $38,000 RASM
• 2015-01-27 Listed $48,500 RASM
• 1991-11-01 Sold (Public Records) $31,000 Public Records

Property tax history

+8.4%/yr

Latest (2025): $1,294 · -11.4% YoY. Source: county tax records.