820 2nd St SW · Perham, MN 56573

$230,000

4 bd · 2.0 ba · 1,728 sqft · SingleFamily public records · 1 Days on market

Built 1952 6,969 sqft lot

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Why this score? — see what drove the B- 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 +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.6/10.0
• ARV discount +7.5/15.0
• Schools +4.4/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

Key facts

• 2 garage spots
• Built 1952

Property features AI

Finance

• Other: Main level finished area 960; Above-grade finished area 960; Below-grade finished area 864; Total living area 1,824; Building area total 1,920; Lot approximately 0.16 acres (50 x 140)
• HOA & community: Association offers laundry amenity

Exterior

• Parking: 2-car garage
• Utilities: City water (in street); City sewer (connected); Electric and natural gas
• Home design: Residential attached property; One level
• Construction: Block foundation
• Exterior features: Vinyl exterior; Deck

Interior

• Bedrooms: 4 bedrooms
• Bathrooms: 2 full bathrooms
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Finished basement with daylight/lookout windows and egress windows
• Laundry & utility: Laundry available (association amenity)

What this means for you Summary

Snapshot

• This is a 4-bed/2.0-bath single-family listed at $230k.

Deal economics

• At list price, monthly cash flow is $962 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $230k).
• Cap rate 11.3% vs local median 6.0% in Perham — 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 70/100 on livability (#328 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, health & safety A+; Watch: amenities F, commute F, employment F.
• Perham-Dent Public School District (town): math 45% / reading 57% proficiency, ranked #110 of 301 in MN (top 36%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 92 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 140 units permitted in Otter Tail County in 2024 (48 in 5+ unit buildings).

Forward outlook

• 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $64k cash investment doubles in ~7 years — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 4 sale attempts since 13y 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 1952 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $230,000

Questions for the listing agent

1. Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are B-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?
4. 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.
5. 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.
6. 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: 1.36% ✓
• Cap rate: 11.31%
• Cash-on-cash: 17.93%
• DSCR: 1.80
• GRM: 6.1

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 9.5%
• Equity multiple: 1.37×
• Total profit: $24,024
• Equity at exit: $34,294

10-year hold

• IRR: 18.6%
• Equity multiple: 2.55×
• Total profit: $99,835
• Equity at exit: $19,886

Cash invested: $64,400 (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 56573

• Home prices YoY: -15.8%
• Active inventory: 92
• Price-to-rent: 6.1×

Monthly cashflow live

• Estimated rent: $3,125 medium
• Mortgage (P&I): −$1,206
• Tax from tax record: −$204 /mo · $2,452/yr
• Insurance: −$96
• HOA: −$0
• Vacancy / Maint / Mgmt: −$656
• Net cashflow: $962

Break-even live

Break-even rent $1,907

Max offer price $230,000

Occupancy floor 64%

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: $57,500
• Closing costs: $6,900
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
812 7th St SW Unit A Perham, MN	3.0	2.0	1602	$3,750	$2.34	43d	1	0.47mi
812 7th St SW Unit B Perham, MN	3.0	2.0	1602	$2,500	$1.56	43d	1	0.47mi

Listing history 14 events

1. 2026-05-23
   status Pending
2. 2026-05-22
   listed $230,000 Active
3. 2022-05-16
   soldstatus $225,000
4. 2022-05-12
   soldstatus $225,000 Sold 592-char remark

   Show marketing remark (592 chars)

   The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

5. 2022-04-23
   status Pending 592-char remark

   Show marketing remark (592 chars)

   The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

6. 2022-04-22
   historical Contingent - Inspection 592-char remark

   Show marketing remark (592 chars)

   The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

7. 2022-04-14
   price $260,000 592-char remark

   Show marketing remark (592 chars)

   The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

8. 2022-03-21
   listed $275,000 Active 592-char remark

   Show marketing remark (592 chars)

   The opportunity you have been waiting for! Become a landlord or just have the ultimate property for entertaining. Maybe live in one level and rent out the other. This could also be the perfect setup for preparing that teenager for living on their own. The possibilities are endless. This property features two freshly remodeled levels. Each floor has two bedrooms, full bathroom, and it's own kitchen. The owners took pride in their remodel by doing the extras, including all NEW appliances! Properties like this don't come along often. Come see for yourself. Bring your ideas when you come!

9. 2017-06-02
   soldstatus $137,600
10. 2014-06-01
    historical
11. 2014-05-30
    historical
12. 2014-02-26
    listed $150,000 Active
13. 2013-05-13
    listed $150,000
14. 2005-07-25
    soldstatus $79,500

ⓘ 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: $2,452 · $204/mo
• Projected year-2 tax: $2,514 · $210/mo
• Expected delta: +$62/yr (+$5/mo · 2.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥97°F today · 12 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $37,500
• − Mortgage interest: −$12,884
• − Property taxes: −$2,452
• − Insurance: −$1,150
• − Repairs & maintenance: −$3,000
• − Management: −$3,000
• − Depreciation: −$6,691
• Taxable income: $8,324
• Est. tax owed @ 24.0%: −$1,998
• After-tax cash flow: $9,552/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)

• District: Perham-Dent Public School District
• NCES district ID: 2728230
• Math proficiency: 45% ▼ -14.00%
• Reading proficiency: 57% ▼ -5.00%
• Median HH income: $50,712
• Composite: 43.64/100
• National rank: #2966
• State rank: #110 of 301 in MN

Livability — Perham

• Score: 70/100
• State rank: #328
• US rank: #7425

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Perham, MN
• Population (ZIP): 6,868

Population outlook (Otter Tail County) Hauer SSP2

• Today (2025): 58,183 people
• By 2030: 58,267 · +0.1%
• By 2040: 57,999 · -0.3%
• By 2050: 57,183 · -1.7%
• By 2075: 57,638 · -0.9%
• By 2100: 54,697 · -6.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Two or more races 6% Black 1%
• Hispanic origin (detail): Mexican 2% Dominican 1%
• Common ancestry: Portuguese 18% Romanian 6% Lithuanian 3%
• Foreign-born: 5% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Otter Tail

• 2024 margin: Solid R (+34.2) · D 32.1% · R 66.3% · Other 1.6%
• 2008→2024 swing: -21.3pp toward R · 2008: -12.9pp · 2024: -34.2pp
• All cycles: 2024: R+34.2 2020: R+32.5 2016: R+35.9 2012: R+21.2 2008: R+12.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -42.48%
• Current HPI: 225.7071
• 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

+189.3% since first listed

14 events — show timeline

• 2026-05-23 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-22 Listed $230,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-05-16 Sold (Public Records) $225,000 Public Records
• 2022-05-12 Sold (MLS) $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-04-23 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2022-04-22 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2022-04-14 Price Changed $260,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-03-21 Listed $275,000 NORTHSTARMLS as Distributed by MLS Grid
• 2017-06-02 Sold (Public Records) $137,600 Public Records
• 2014-06-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2014-05-30 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2014-02-26 Listed $150,000 NORTHSTARMLS as Distributed by MLS Grid
• 2013-05-13 Listed $150,000 NORTHSTARMLS as Distributed by MLS Grid
• 2005-07-25 Sold (Public Records) $79,500 Public Records

Property tax history

+7.2%/yr

Latest (2025): $2,452 · +12.7% YoY. Source: county tax records.