710 West Village Rd #104

Chanhassen, MN 55317

$185,000D

2 bd · 1.0 ba · 920 sqft · Built 1988 · Condo · Pending · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,870/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$238
• HOA: −$341
• Vac / Maint / Mgmt: −$393
• Net cashflow: $-71/mo
• Annual: $-853/yr
• Cap rate: 5.83%
• Cash-on-cash: -1.65%
• DSCR: 0.93
• 1% rule: 1.01%
• Cash to close: $51,800

Investor read

• This is a 2-bed/1.0-bath condo listed at $185k.
• At list price, monthly cash flow is $-71 ($-853/yr) — negative.
• To cash-flow at today's rent, offer at most $172k (6.8% below list).
• Meets the 1% rule at list price ($2k rent vs $185k).
• It's been on market 27 days — a 2% lower offer ($182k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $172k (6.8% below list) — sets the bar for cash-flow.
• 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.
• Location reads 82/100 on livability (#34 in MN, #1,049 nationally) — a professional / high-income tenant draw. Strengths: crime A+, commute A+, employment A+; Watch: amenities F, cost of living F.
• Eastern Carver County Public School (suburban): math 52% / reading 61% proficiency, ranked #41 of 301 in MN (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: La Academia (math 47% / reading 52%, grade D, #423 of 857 statewide, top 55%, 449 students, 32% FRL); Pioneer Ridge Middle School (math 32% / reading 57%, grade D, #118 of 258 statewide, top 48%, 496 students, 22% FRL); Chanhassen High School (math 52% / reading 68%, grade C+, #44 of 471 statewide, top 9%, 1,370 students, 16% FRL).
• Market conditions: 150 active listings in the ZIP; 6 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 682 units permitted in Carver County in 2024 (6 in 5+ unit buildings).
• Carver County population projected at +29% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 15y ago; this cycle's ask has dropped $10k (5%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $54k; list at $185k implies a 241% gain — meaningful room to come down on a strong offer.
• Cap rate 5.8% vs local median 2.5% in Chanhassen — 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.
• This rent is only 16% of the median local income ($140k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.