406 5th St NW · Montgomery, MN 56069

$215,000

3 bd · 1.0 ba · 979 sqft · SingleFamily public records · 130 Days on market

Built 1946 7,492 sqft lot $220/sqft · 29% below area Est $381k · 44% under

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Why this score? — see what drove the D+ 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).

• ARV discount +15.0/15.0
• Cash flow +12.4/30.0
• Schools +5.0/10.0
• DSCR +3.7/10.0
• Livability +3.4/5.0
• 1% rule +3.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

Key facts

• 7,492 sq ft lot
• Garage
• Built 1946

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $215k.

Deal economics

• At list price, monthly cash flow is $-36 ($-428/yr) — negative.
• To cash-flow at today's rent, offer at most $209k (2.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $173k (19.6% below list).
• Recommended offer: $173k (19.6% below list) — sets the bar for 1% rule.
• Cap rate 6.1% 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 $6k 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 130 days — a 12% lower offer ($189k) is reasonable based on typical stale-listing flexibility.
• 11 sale attempts since 27y 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.

Risks & watch-outs

• Watch-outs: built in 1946 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $172,774 (19.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 130 days. Have you received any prior offers? Is the seller open to a 20% concession, seller financing, or rate buy-down credit?
3. Built in 1946 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
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. 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?
7. 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.
8. 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.
9. 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: 0.80% ✗
• Cap rate: 6.09%
• Cash-on-cash: -0.71%
• DSCR: 0.97
• GRM: 10.4

CMA / ARV

• ARV (median comp): $381,457
• List price: $215,000
• Delta: -43.64%
• Verdict: UNDERPRICED
• Comps: 2 within 2.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -17.5%
• Equity multiple: 0.38×
• Total profit: $-37,136
• Equity at exit: $32,057

10-year hold

• IRR: -9.6%
• Equity multiple: 0.41×
• Total profit: $-35,368
• Equity at exit: $18,589

Cash invested: $60,200 (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: 10.4×

Monthly cashflow live

• Estimated rent: $1,728 medium
• Mortgage (P&I): −$1,127
• Tax from tax record: −$184 /mo · $2,202/yr
• Insurance: −$90
• HOA: −$0
• Vacancy / Maint / Mgmt: −$363
• Net cashflow: $-36

Break-even live

Break-even rent $1,773

Max offer price $208,702

Occupancy floor 97%

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: $53,750
• Closing costs: $6,450
• Reserves months: —
• Total cash needed: —

Listing history 48 events

1. 2026-06-19
   days on market $215,000 Active 130 DOM
2. 2026-06-18
   days on market $215,000 Active 129 DOM
3. 2026-06-17
   days on market $215,000 Active 128 DOM
4. 2026-06-16
   days on market $215,000 Active 127 DOM
5. 2026-06-15
   days on market $215,000 Active 126 DOM
6. 2026-06-14
   days on market $215,000 Active 124 DOM
7. 2026-06-12
   days on market $215,000 Active 123 DOM
8. 2026-06-09
   days on market $215,000 Active 120 DOM
9. 2026-06-08
   days on market $215,000 Active 119 DOM
10. 2026-06-07
    pricedays on market $215,000 Active 118 DOM
11. 2026-06-02
    days on market $218,500 Active 113 DOM
12. 2026-06-01
    days on market $218,500 Active 112 DOM
13. 2026-05-31
    days on market $218,500 Active 111 DOM
14. 2026-05-30
    days on market $218,500 Active 110 DOM
15. 2026-04-30
    price $218,500 686-char remark

    Show marketing remark (686 chars)

    Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

16. 2026-03-12
    price $225,000 686-char remark

    Show marketing remark (686 chars)

    Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

17. 2026-02-12
    status Active 686-char remark

    Show marketing remark (686 chars)

    Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

18. 2026-01-16
    listed $218,900 Active 686-char remark

    Show marketing remark (686 chars)

    Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

19. 2026-01-12
    historical $218,900 686-char remark

    Show marketing remark (686 chars)

    Welcome to a home filled with charm and character! With 2 bedrooms on the main level and a flexible lower-level den, this home offers comfort and versatility. Timeless details like arched entryways and beautiful woodwork bring a cozy, inviting feel, while the family room with its fireplace is the perfect spot to unwind. A dedicated dining room creates a warm setting for shared meals and special moments. Step outside to enjoy the privacy of your own backyard retreat. All of this in a wonderful location—close to parks, within walking distance to schools, and just a short stroll to the shops and restaurants of historic downtown Montgomery. New water heater installed in 2026.

20. 2026-01-04
    historical
21. 2025-11-13
    price $218,900
22. 2025-09-26
    listed $225,000 Active
23. 2025-09-19
    historical
24. 2022-10-20
    soldstatus $196,000 Sold
25. 2022-10-20
    soldstatus $196,000
26. 2022-10-10
    status Pending
27. 2022-09-23
    status Active
28. 2022-09-22
    historical Contingent - Inspection
29. 2022-09-16
    listed $179,900 Active
30. 2011-09-09
    soldstatus $49,900
31. 2011-08-24
    historical
32. 2011-03-22
    listed $55,900
33. 2010-05-13
    historical
34. 2009-05-13
    listed $125,000
35. 2009-05-08
    historical
36. 2008-05-09
    listed $125,000
37. 2004-11-29
    soldstatus $132,000
38. 2004-11-24
    soldstatus $132,900
39. 2004-09-23
    historical
40. 2004-08-18
    listed $129,000
41. 2002-06-07
    soldstatus $110,000
42. 2002-06-07
    soldstatus $110,000
43. 2002-04-18
    historical
44. 2002-02-12
    listed $119,500
45. 1999-08-16
    soldstatus $86,250
46. 1999-08-16
    soldstatus $86,250
47. 1999-06-14
    historical
48. 1999-05-19
    listed $87,500

ⓘ 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: $2,202 · $184/mo
• Projected year-2 tax: $2,305 · $192/mo
• Expected delta: +$103/yr (+$9/mo · 4.7%)

ⓘ 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 · 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: $20,733
• − Mortgage interest: −$12,043
• − Property taxes: −$2,202
• − Insurance: −$1,075
• − Repairs & maintenance: −$1,659
• − Management: −$1,659
• − Depreciation: −$6,255
• Taxable loss: −$4,159
• Est. tax savings @ 24.0%: +$998
• After-tax cash flow: $570/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

+149.7% since first listed

34 events — show timeline

• 2026-04-30 Price Changed $218,500 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-12 Price Changed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-02-12 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-16 Listed $218,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-12 Coming Soon $218,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-04 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-13 Price Changed $218,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-26 Listed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-19 Coming Soon — NORTHSTARMLS as Distributed by MLS Grid
• 2022-10-20 Sold (Public Records) $196,000 Public Records
• 2022-10-20 Sold (MLS) $196,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-10-10 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2022-09-23 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2022-09-22 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2022-09-16 Listed $179,900 NORTHSTARMLS as Distributed by MLS Grid
• 2011-09-09 Sold (MLS) $49,900 NORTHSTARMLS as Distributed by MLS Grid
• 2011-08-24 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2011-03-22 Listed $55,900 NORTHSTARMLS as Distributed by MLS Grid
• 2010-05-13 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2009-05-13 Listed $125,000 NORTHSTARMLS as Distributed by MLS Grid
• 2009-05-08 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2008-05-09 Listed $125,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-11-29 Sold (Public Records) $132,000 Public Records
• 2004-11-24 Sold (MLS) $132,900 NORTHSTARMLS as Distributed by MLS Grid
• 2004-09-23 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2004-08-18 Listed $129,000 NORTHSTARMLS as Distributed by MLS Grid
• 2002-06-07 Sold (Public Records) $110,000 Public Records
• 2002-06-07 Sold (MLS) $110,000 NORTHSTARMLS as Distributed by MLS Grid
• 2002-04-18 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2002-02-12 Listed $119,500 NORTHSTARMLS as Distributed by MLS Grid
• 1999-08-16 Sold (Public Records) $86,250 Public Records
• 1999-08-16 Sold (MLS) $86,250 NORTHSTARMLS as Distributed by MLS Grid
• 1999-06-14 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1999-05-19 Listed $87,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+7.9%/yr

Latest (2025): $2,202 · +3.8% YoY. Source: county tax records.