220 Maple Ave SW

Elysian, MN 56028

$2,400,000D-

80 bd · 48.0 ba · 17,280 sqft · Built 2021 · MultiFamily · Active · 80 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $19,600/mo
• Mortgage (P&I): −$12,586
• Tax + insurance: −$4,000
• HOA: −$0
• Vac / Maint / Mgmt: −$4,116
• Net cashflow: $-1,102/mo
• Annual: $-13,222/yr
• Cap rate: 5.74%
• Cash-on-cash: -1.97%
• DSCR: 0.91
• 1% rule: 0.82%
• Cash to close: $672,000

Investor read

• This is a 16 × 4-bed/2.0-bath units multifamily listed at $2.40M. Condition is rated good.
• At list price, monthly cash flow is $-1k ($-13k/yr) — negative. Per door: $-69/mo.
• To cash-flow at today's rent, offer at most $2.24M (6.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $1.96M (18.3% below list).
• It's been on market 80 days — a 6% lower offer ($2.26M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.96M (18.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $17k of loan paydown is wiped out by about $72k of value loss. Plan a longer hold.
• Location reads 63/100 on livability (#661 in MN) — a middle-class / working-renter tenant base. Strengths: employment A+, housing A+, crime B; Watch: schools F, amenities F, commute F.
• Waterville-Elysian-Morristown (rural): math 44% / reading 52% proficiency, ranked #135 of 301 in MN (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 18 active listings in the ZIP; 60 units permitted in Le Sueur County in 2024 (0 in 5+ unit buildings).
• Le Sueur County population projected to shrink 8% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 2 sale attempts 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.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

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 80 days. Have you received any prior offers? Is the seller open to a 18% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?