422 2nd St SE · Wadena, MN 56482

$49,900

2 bd · 1.0 ba · 736 sqft · SingleFamily public records · 10 Days on market

Built 1900 6,969 sqft lot $68/sqft · 41% below area ↓ 20% since listing

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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
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Livability +3.4/5.0
• Schools +3.3/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Don't miss this affordable fixer-upper located in the heart of Wadena. This home has great potential and has a new roof. Located on a nice corner lot.

Key facts

• New roof
• Corner lot
• 6,969 sq ft lot

Tags

• NEW ROOF
• CORNER LOT

Property features AI

Exterior

• Parking: No dedicated parking or garage
• Utilities: City water connected; City sewer connected; Oil heat
• Home design: Residential property; One and one-half story; Pitched asphalt roof (age 8 years or less)
• Construction: Frame construction; Concrete perimeter foundation; Roof: asphalt, pitched
• Exterior features: Wood exterior; Porch; Corner lot; Road frontage on city paved streets; Publicly maintained road

Interior

• Kitchen: Refrigerator
• Bedrooms: Two bedrooms total (one on the main level, one on the upper level)
• Bathrooms: Upper-level full bathroom
• Heating & cooling: Hot water heating; No central air
• Interior features: Kitchen/dining room combination; Porch; Main floor bedroom; Unfinished partial basement with block walls
• Laundry & utility: Washer/dryer hookup; Electric water heater

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $50k.

Deal economics

• At list price, monthly cash flow is $326 ($4k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($826 rent vs $50k).
• Cap rate 14.1% vs local median 3.3% in Wadena — 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 67/100 on livability (#433 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, crime A; Watch: health & safety C-, schools D+, amenities F.
• Wadena-Deer Creek School District (town): math 33% / reading 45% proficiency, ranked #235 of 301 in MN (top 78%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 47 active listings in the ZIP; 52 units permitted in Wadena County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $345 of loan paydown is wiped out by about $1k of value loss. Plan a longer hold.
• Wadena County population projected to shrink 6% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $14k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 6y 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.
• Current owner paid $36k; 39% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $49,900

Questions for the listing agent

1. Built in 1900 — 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
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: 1.65% ✓
• Cap rate: 14.13%
• Cash-on-cash: 27.99%
• DSCR: 2.25
• GRM: 5.0

CMA / ARV

• ARV (median comp): $154,516
• List price: $49,900
• Delta: -67.71%
• Verdict: UNDERPRICED
• Comps: 2 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 22.1%
• Equity multiple: 1.91×
• Total profit: $12,669
• Equity at exit: $7,440

10-year hold

• IRR: 30.2%
• Equity multiple: 3.70×
• Total profit: $37,760
• Equity at exit: $4,314

Cash invested: $13,972 (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 56482

• Home prices YoY: -7.6%
• Active inventory: 47
• Price-to-rent: 5.0×

Monthly cashflow live

• Estimated rent: $826 medium
• Mortgage (P&I): −$262
• Tax from tax record: −$44 /mo · $526/yr
• Insurance: −$21
• HOA: −$0
• Vacancy / Maint / Mgmt: −$173
• Net cashflow: $326

Break-even live

Break-even rent $413

Max offer price $49,900

Occupancy floor 56%

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: $12,475
• Closing costs: $1,497
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-05-08
   listed $49,900 Active
2. 2021-12-29
   historical
3. 2020-12-29
   listed $46,900 Active
4. 2005-02-01
   soldstatus $45,000

ⓘ 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: $526 · $44/mo
• Projected year-2 tax: $542 · $45/mo
• Expected delta: +$16/yr (+$1/mo · 3.1%)

ⓘ 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 4/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥95°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 2 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $9,906
• − Mortgage interest: −$2,795
• − Property taxes: −$526
• − Insurance: −$250
• − Repairs & maintenance: −$792
• − Management: −$792
• − Depreciation: −$1,452
• Taxable income: $3,299
• Est. tax owed @ 24.0%: −$792
• After-tax cash flow: $3,119/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: Wadena-Deer Creek School District
• NCES district ID: 2700022
• Math proficiency: 33% ▼ -15.00%
• Reading proficiency: 45% ▼ -11.00%
• Median HH income: $38,917
• Composite: 32.56/100
• National rank: #5683
• State rank: #235 of 301 in MN

Livability — Wadena

• Score: 67/100
• State rank: #433
• US rank: #10325

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Wadena, MN
• Population (ZIP): 7,494

Population outlook (Wadena County) Hauer SSP2

• Today (2025): 13,856 people
• By 2030: 13,689 · -1.2%
• By 2040: 13,382 · -3.4%
• By 2050: 13,062 · -5.7%
• By 2075: 12,185 · -12.1%
• By 2100: 10,297 · -25.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 7% Hispanic / Latino 3%
• Common ancestry: Portuguese 12% Romanian 2% Lithuanian 2%
• Foreign-born: 3% · Canada
• Languages at home: 95% English-only · German/W. Germanic 2% Spanish 1%

Political lean MEDSL · Wadena

• 2024 margin: Solid R (+51.5) · D 23.6% · R 75.1% · Other 1.2%
• 2008→2024 swing: -34.1pp toward R · 2008: -17.4pp · 2024: -51.5pp
• All cycles: 2024: R+51.5 2020: R+45.5 2016: R+45.7 2012: R+24.4 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -18.45%
• Current HPI: 223.9404
• 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

-20.0% since first listed

7 events — show timeline

• 2026-06-05 Sold (Public Records) $36,000 Public Records
• 2026-06-05 Sold (MLS) $36,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-28 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-08 Listed $49,900 NORTHSTARMLS as Distributed by MLS Grid
• 2021-12-29 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2020-12-29 Listed $46,900 NORTHSTARMLS as Distributed by MLS Grid
• 2005-02-01 Sold (Public Records) $45,000 Public Records

Property tax history

+8.1%/yr

Latest (2026): $526 · +4.0% YoY. Source: county tax records.