1206 James Ave · Albert Lea, MN 56007

$79,900

5 bd · 2.0 ba · 1,684 sqft · SingleFamily public records · 147 Days on market

Built 1900 6,833 sqft lot $47/sqft · 51% below area

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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
• ARV discount +7.5/15.0
• Livability +3.6/5.0
• Schools +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

If you are looking for a large home and you have the ability to do some remodeling yourself, this is a great opportunity. Replacing the flooring, giving it a fresh coat of paint and some new fixtures and you have the start to a great home. The exterior features vinyl siding for maintenance free living. There is a newer boiler and it keeps the home comfortable in the winter months. Please reach out today or schedule a showing with your Buyer's Agent. The Listing Agent owns that vacant lot to the North so both lots could be combined in the purchase. The property is a show and go so schedule through ShowingTime.

Key facts

• Newer boiler
• Vinyl siding
• 6,833 sq ft lot

Tags

• VINYL SIDING
• NEWER BOILER

What this means for you Summary

Snapshot

• This is a 5-bed/2.0-bath single-family listed at $80k.

Deal economics

• At list price, monthly cash flow is $653 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $80k).
• Recommended offer: $70k (12.0% below list) — sets the bar for market timing.
• Cap rate 17.1% vs local median 4.0% in Albert Lea — 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 72/100 on livability (#274 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, employment D+, amenities F.
• Albert Lea Public School District (town): math 30% / reading 40% proficiency, ranked #258 of 301 in MN (top 86%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 150 active listings in the ZIP; 16 units permitted in Freeborn County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $552 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Freeborn County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 147 days — a 12% lower offer ($70k) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 22y ago; this cycle's ask has dropped $20k (20%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $50k; list at $80k implies a 60% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: flood insurance adds $66/mo; built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $70,312 (12.0% below list)

Questions for the listing agent

1. It's been on market 147 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 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
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. 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.
7. 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.
8. 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: 1.95% ✓
• Cap rate: 17.09%
• Cash-on-cash: 38.57%
• DSCR: 2.72
• GRM: 4.3

CMA / ARV

• ARV (median comp): $191,000
• List price: $79,900
• Delta: -58.17%
• Verdict: UNDERPRICED
• Comps: 7 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 30.6%
• Equity multiple: 2.28×
• Total profit: $28,658
• Equity at exit: $11,913

10-year hold

• IRR: 37.8%
• Equity multiple: 4.52×
• Total profit: $78,641
• Equity at exit: $6,908

Cash invested: $22,372 (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 56007

• Home prices YoY: -22.3%
• Active inventory: 150
• Price-to-rent: 4.3×

Monthly cashflow live

• Estimated rent: $1,561 medium
• Mortgage (P&I): −$419
• Tax from tax record: −$62 /mo · $740/yr
• Insurance: −$33
• Flood insurance flood zone: −$66 /mo · $798/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$328
• Net cashflow: $653

Break-even live

Break-even rent $735

Max offer price $79,900

Occupancy floor 53%

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: $19,975
• Closing costs: $2,397
• Reserves months: —
• Total cash needed: —

Listing history 38 events

1. 2026-06-19
   days on market $79,900 Active 147 DOM
2. 2026-06-18
   days on market $79,900 Active 146 DOM
3. 2026-06-17
   days on market $79,900 Active 145 DOM
4. 2026-06-16
   days on market $79,900 Active 144 DOM
5. 2026-06-15
   days on market $79,900 Active 143 DOM
6. 2026-06-14
   days on market $79,900 Active 141 DOM
7. 2026-06-12
   days on market $79,900 Active 140 DOM
8. 2026-06-09
   days on market $79,900 Active 137 DOM
9. 2026-06-08
   days on market $79,900 Active 136 DOM
10. 2026-06-07
    days on market $79,900 Active 135 DOM
11. 2026-06-05
    days on market $79,900 Active 132 DOM
12. 2026-06-03
    days on market $79,900 Active 131 DOM
13. 2026-06-02
    days on market $79,900 Active 130 DOM
14. 2026-06-01
    days on market $79,900 Active 129 DOM
15. 2026-05-31
    days on market $79,900 Active 128 DOM
16. 2026-05-30
    days on market $79,900 Active 127 DOM
17. 2026-04-24
    price $79,900 616-char remark

    Show marketing remark (616 chars)

    If you are looking for a large home and you have the ability to do some remodeling yourself, this is a great opportunity. Replacing the flooring, giving it a fresh coat of paint and some new fixtures and you have the start to a great home. The exterior features vinyl siding for maintenance free living. There is a newer boiler and it keeps the home comfortable in the winter months. Please reach out today or schedule a showing with your Buyer's Agent. The Listing Agent owns that vacant lot to the North so both lots could be combined in the purchase. The property is a show and go so schedule through ShowingTime.

18. 2026-01-23
    listed $99,900 Active 616-char remark

    Show marketing remark (616 chars)

    If you are looking for a large home and you have the ability to do some remodeling yourself, this is a great opportunity. Replacing the flooring, giving it a fresh coat of paint and some new fixtures and you have the start to a great home. The exterior features vinyl siding for maintenance free living. There is a newer boiler and it keeps the home comfortable in the winter months. Please reach out today or schedule a showing with your Buyer's Agent. The Listing Agent owns that vacant lot to the North so both lots could be combined in the purchase. The property is a show and go so schedule through ShowingTime.

19. 2018-12-11
    historical 122-char remark

    Show marketing remark (122 chars)

    Property has been a rental for years. Could be a nice single family home. Good block foundation. Put your talents to work!

20. 2018-12-10
    historical
21. 2018-12-10
    historical
22. 2018-12-09
    historical
23. 2018-10-18
    soldstatus $50,000
24. 2018-10-15
    soldstatus $50,000
25. 2018-06-19
    listed $59,600
26. 2017-11-21
    listed $67,900
27. 2016-07-15
    soldstatus $23,000 122-char remark

    Show marketing remark (122 chars)

    Property has been a rental for years. Could be a nice single family home. Good block foundation. Put your talents to work!

28. 2016-07-15
    soldstatus $23,000

    Show marketing remark (122 chars)

    Property has been a rental for years. Could be a nice single family home. Good block foundation. Put your talents to work!

29. 2016-06-14
    listed $24,900 122-char remark

    Show marketing remark (122 chars)

    Property has been a rental for years. Could be a nice single family home. Good block foundation. Put your talents to work!

30. 2009-04-06
    soldstatus $18,000
31. 2009-04-06
    soldstatus $18,000
32. 2009-03-05
    listed $19,900
33. 2009-03-05
    listed $19,900
34. 2006-04-27
    soldstatus $44,211
35. 2006-04-27
    soldstatus $44,211
36. 2006-04-13
    historical
37. 2005-11-30
    listed $39,900
38. 2004-04-13
    listed $63,900

ⓘ 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: $740 · $62/mo
• Projected year-2 tax: $817 · $68/mo
• Expected delta: +$77/yr (+$6/mo · 10.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 7/10 Severe FEMA zone X (unshaded) · 76% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 16 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: $18,729
• − Mortgage interest: −$4,476
• − Property taxes: −$740
• − Insurance: −$1,197
• − Repairs & maintenance: −$1,498
• − Management: −$1,498
• − Depreciation: −$2,324
• Taxable income: $6,996
• Est. tax owed @ 24.0%: −$1,679
• After-tax cash flow: $6,152/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: Albert Lea Public School District
• NCES district ID: 2702970
• Math proficiency: 30% ▼ -14.00%
• Reading proficiency: 40% ▼ -8.00%
• Median HH income: $42,776
• Composite: 29.62/100
• National rank: #6472
• State rank: #258 of 301 in MN

Livability — Albert Lea

• Score: 72/100
• State rank: #274
• US rank: #5963

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Albert Lea, MN
• County: Freeborn County · 21,377 people
• City population: 21,377
• Metro: Albert Lea, MN
• Population (ZIP): 21,377
• Household income: $68,846
• Rent vs Own: 23.3% rent · 76.7% own
• Severe rent burden: 483.0

Population outlook (Freeborn County) Hauer SSP2

• Today (2025): 29,680 people
• By 2030: 29,038 · -2.2%
• By 2040: 27,650 · -6.8%
• By 2050: 26,387 · -11.1%
• By 2075: 25,224 · -15.0%
• By 2100: 23,842 · -19.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (79%)
• Race & ethnicity: White 79% Hispanic / Latino 14% Two or more races 8% Asian 4% Black 2%
• Hispanic origin (detail): Mexican 11%
• Common ancestry: Portuguese 23% Iranian 3% Romanian 2%
• Foreign-born: 4% · Canada, Philippines
• Languages at home: 90% English-only · Spanish 7% Other Asian/Pacific 3%

Political lean MEDSL · Freeborn

• 2024 margin: Strong R (+21.3) · D 38.7% · R 60.0% · Other 1.3%
• 2008→2024 swing: -38.5pp toward R · 2008: 17.1pp · 2024: -21.3pp
• All cycles: 2024: R+21.3 2020: R+16.0 2016: R+17.4 2012: D+14.2 2008: D+17.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -63.40%
• Current HPI: 220.7963
• Rent YoY: —
• Metro: Albert Lea, 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

+25.0% since first listed

22 events — show timeline

• 2026-04-24 Price Changed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-23 Listed $99,900 NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-11 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-10 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-12-09 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2018-10-18 Sold (MLS) $50,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-10-15 Sold (Public Records) $50,000 Public Records
• 2018-06-19 Listed $59,600 NORTHSTARMLS as Distributed by MLS Grid
• 2017-11-21 Listed $67,900 NORTHSTARMLS as Distributed by MLS Grid
• 2016-07-15 Sold (Public Records) $23,000 Public Records
• 2016-07-15 Sold (MLS) $23,000 NORTHSTARMLS as Distributed by MLS Grid
• 2016-06-14 Listed $24,900 NORTHSTARMLS as Distributed by MLS Grid
• 2009-04-06 Sold (MLS) $18,000 NORTHSTARMLS as Distributed by MLS Grid
• 2009-04-06 Sold (MLS) $18,000 NORTHSTARMLS as Distributed by MLS Grid
• 2009-03-05 Listed $19,900 NORTHSTARMLS as Distributed by MLS Grid
• 2009-03-05 Listed $19,900 NORTHSTARMLS as Distributed by MLS Grid
• 2006-04-27 Sold (Public Records) $44,211 Public Records
• 2006-04-27 Sold (MLS) $44,211 NORTHSTARMLS as Distributed by MLS Grid
• 2006-04-13 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2005-11-30 Listed $39,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-04-13 Listed $63,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+2.5%/yr

Latest (2025): $740 · +13.1% YoY. Source: county tax records.