1743 Reichert Ave

Red Wing, MN 55066

$223,000D

3 bd · 1.0 ba · 1,694 sqft · Built 1970 · SingleFamily · Active · 38 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,832/mo
• Mortgage (P&I): −$1,169
• Tax + insurance: −$380
• HOA: −$0
• Vac / Maint / Mgmt: −$385
• Net cashflow: $-102/mo
• Annual: $-1,222/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.96%
• DSCR: 0.91
• 1% rule: 0.82%
• Cash to close: $62,440

Investor read

• This is a 3-bed/1.0-bath single-family listed at $223k.
• At list price, monthly cash flow is $-102 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $205k (8.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $183k (17.9% below list).
• It's been on market 38 days — a 3% lower offer ($216k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $183k (17.9% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 81/100 on livability (#64 in MN, #1,570 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D.
• Red Wing Public School District (rural): math 36% / reading 44% proficiency, ranked #220 of 301 in MN (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Burnside Elementary (math 47% / reading 50%, grade D, #480 of 857 statewide, top 56%, 522 students, 42% FRL); Twin Bluff School (math 40% / reading 40%, grade F, #147 of 258 statewide, top 57%, 534 students, 37% FRL); Red Wing Senior High (math 31% / reading 44%, grade F, #280 of 471 statewide, top 59%, 866 students, 37% FRL).
• Market conditions: 141 active listings in the ZIP; 86 units permitted in Goodhue County in 2024 (0 in 5+ unit buildings).
• Goodhue County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 5 sale attempts since 25y ago; this cycle's ask has dropped $14k (6%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $157k; 42% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.7% vs local median 3.5% in Red Wing — 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.

Questions for listing agent

• 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?
• It's been on market 38 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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.
• 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.
• 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.