205 Elm Ave SE · Montgomery, MN 56069

$155,000

2 bd · 1.0 ba · 1,120 sqft · SingleFamily public records · 107 Days on market

Built 1902 6,400 sqft lot $138/sqft · 24% below area

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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 +24.8/30.0
• DSCR +8.1/10.0
• ARV discount +7.5/15.0
• 1% rule +6.5/10.0
• Schools +5.0/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

Key facts

• 6,400 sq ft lot
• Built 1902
• Listed 107 days

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $155k.

Deal economics

• At list price, monthly cash flow is $329 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $155k).
• Recommended offer: $141k (9.0% below list) — sets the bar for market timing.
• Cap rate 8.8% vs local median 3.2% in Montgomery — 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 68/100 on livability (#399 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Market conditions: 80 active listings in the ZIP; 60 units permitted in Le Sueur County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Le Sueur County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.

Negotiation context

• It's been on market 107 days — a 9% lower offer ($141k) is reasonable based on typical stale-listing flexibility.
• 8 sale attempts since 31y ago; this cycle's ask has dropped $45k (22%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $60k; list at $155k implies a 158% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $141,050 (9.0% below list)

Questions for the listing agent

1. It's been on market 107 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Built in 1902 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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.
6. 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.
7. 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: 1.15% ✓
• Cap rate: 8.84%
• Cash-on-cash: 9.10%
• DSCR: 1.41
• GRM: 7.2

CMA / ARV

• ARV (median comp): $326,997
• List price: $155,000
• Delta: -52.60%
• Verdict: UNDERPRICED
• Comps: 2 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -2.5%
• Equity multiple: 0.91×
• Total profit: $-4,114
• Equity at exit: $23,111

10-year hold

• IRR: 7.2%
• Equity multiple: 1.54×
• Total profit: $23,550
• Equity at exit: $13,402

Cash invested: $43,400 (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 56069

• Home prices YoY: -15.8%
• Active inventory: 80
• Price-to-rent: 7.2×

Monthly cashflow live

• Estimated rent: $1,783 medium
• Mortgage (P&I): −$813
• Tax from tax record: −$202 /mo · $2,418/yr
• Insurance: −$65
• HOA: −$0
• Vacancy / Maint / Mgmt: −$374
• Net cashflow: $329

Break-even live

Break-even rent $1,366

Max offer price $155,000

Occupancy floor 77%

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: $38,750
• Closing costs: $4,650
• Reserves months: —
• Total cash needed: —

Listing history 44 events

1. 2026-06-15
   price $155,000 Pending 107 DOM
2. 2026-06-12
   statusdays on market $140,000 Pending 107 DOM
3. 2026-06-09
   days on market $140,000 Active 104 DOM
4. 2026-06-08
   days on market $140,000 Active 103 DOM
5. 2026-06-07
   days on market $140,000 Active 102 DOM
6. 2026-06-02
   days on market $140,000 Active 97 DOM
7. 2026-06-01
   days on market $140,000 Active 96 DOM
8. 2026-05-31
   days on market $140,000 Active 95 DOM
9. 2026-05-30
   days on market $140,000 Active 94 DOM
10. 2026-05-15
    price $140,000
11. 2026-05-08
    price $147,000
12. 2026-04-16
    price $149,000
13. 2026-04-10
    price $155,000
14. 2026-03-26
    price $160,000
15. 2026-03-15
    price $175,000
16. 2026-03-07
    price $189,900
17. 2026-02-25
    listed $200,000 Active
18. 2025-07-31
    soldstatus $60,000 Sold 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

19. 2025-07-31
    soldstatus $60,000

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

20. 2025-07-18
    status Pending 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

21. 2025-07-16
    price $64,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

22. 2025-07-09
    price $69,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

23. 2025-06-25
    price $74,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

24. 2025-06-19
    price $79,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

25. 2025-06-11
    price $84,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

26. 2025-06-04
    price $89,900 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

27. 2025-05-20
    listed $99,900 Active 303-char remark

    Show marketing remark (303 chars)

    3 bedroom, 2 bath home with a nice private yard. House needs work—kitchen is currently blocked off with caution tape due to unsafe/absent flooring. Use caution and enter at your discretion. Great opportunity for someone ready to take on a project and add value. Easy to show. Quick close possible.

28. 2025-05-05
    soldstatus $57,000
29. 2006-10-31
    historical
30. 2006-06-10
    listed $135,000
31. 2005-06-09
    soldstatus $65,000
32. 2005-06-07
    soldstatus $65,000
33. 2005-05-09
    listed $69,900
34. 2005-05-09
    historical
35. 2005-03-17
    historical
36. 2004-09-03
    listed $69,900
37. 2004-07-28
    historical
38. 2004-04-15
    listed $84,900
39. 2002-02-01
    soldstatus $25,000
40. 1996-05-28
    soldstatus $25,000
41. 1996-05-02
    historical
42. 1996-04-01
    historical
43. 1996-03-27
    listed $29,900
44. 1995-08-06
    listed $29,900

ⓘ 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: $2,418 · $202/mo
• Projected year-2 tax: $2,418 · $202/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 FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥99°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $21,390
• − Mortgage interest: −$8,682
• − Property taxes: −$2,418
• − Insurance: −$775
• − Repairs & maintenance: −$1,711
• − Management: −$1,711
• − Depreciation: −$4,509
• Taxable income: $1,583
• Est. tax owed @ 24.0%: −$380
• After-tax cash flow: $3,571/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)

No district data.

Livability — Montgomery

• Score: 68/100
• State rank: #399
• US rank: #9396

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, MN
• Population (ZIP): 4,948

Population outlook (Le Sueur County) Hauer SSP2

• Today (2025): 27,622 people
• By 2030: 27,346 · -1.0%
• By 2040: 26,451 · -4.2%
• By 2050: 25,299 · -8.4%
• By 2075: 23,188 · -16.1%
• By 2100: 21,103 · -23.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (93%)
• Race & ethnicity: White 93% Two or more races 4% Hispanic / Latino 3%
• Common ancestry: Portuguese 6% Romanian 5% Lithuanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Le Sueur

• 2024 margin: Solid R (+33.7) · D 32.4% · R 66.0% · Other 1.6%
• 2008→2024 swing: -29.4pp toward R · 2008: -4.3pp · 2024: -33.7pp
• All cycles: 2024: R+33.7 2020: R+30.3 2016: R+30.7 2012: R+6.5 2008: R+4.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -50.12%
• Current HPI: 266.5331
• 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

+368.2% since first listed

35 events — show timeline

• 2026-05-15 Price Changed $140,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-08 Price Changed $147,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-16 Price Changed $149,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-10 Price Changed $155,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-26 Price Changed $160,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-15 Price Changed $175,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-07 Price Changed $189,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-25 Listed $200,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-31 Sold (Public Records) $60,000 Public Records
• 2025-07-31 Sold (MLS) $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-18 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-16 Price Changed $64,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-09 Price Changed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-25 Price Changed $74,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-19 Price Changed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-11 Price Changed $84,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-04 Price Changed $89,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-05-20 Listed $99,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-05-05 Sold (Public Records) $57,000 Public Records
• 2006-10-31 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2006-06-10 Listed $135,000 NORTHSTARMLS as Distributed by MLS Grid
• 2005-06-09 Sold (Public Records) $65,000 Public Records
• 2005-06-07 Sold (MLS) $65,000 NORTHSTARMLS as Distributed by MLS Grid
• 2005-05-09 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2005-05-09 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2005-03-17 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-09-03 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-07-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-04-15 Listed $84,900 NORTHSTARMLS as Distributed by MLS Grid
• 2002-02-01 Sold (Public Records) $25,000 Public Records
• 1996-05-28 Sold (MLS) $25,000 NORTHSTARMLS as Distributed by MLS Grid
• 1996-05-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1996-04-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1996-03-27 Listed $29,900 NORTHSTARMLS as Distributed by MLS Grid
• 1995-08-06 Listed $29,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+5.5%/yr

Latest (2025): $2,418 · +10.6% YoY. Source: county tax records.