203 Riverside Ave · Park Rapids, MN 56470

$174,500

3 bd · 1.5 ba · 731 sqft · SingleFamily public records · 13 Days on market

Built 1902 0.25 ac lot $239/sqft · at area comps Est $288k · 39% under

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Why this score? — see what drove the D 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).

• ARV discount +15.0/15.0
• Appreciation +10.0/10.0
• Cash flow +3.8/30.0
• Livability +3.7/5.0
• Schools +3.6/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• 1% rule +0.0/10.0
• DSCR +0.0/10.0

Listing remarks

Welcome to this well cared for 3-bedroom, 2-bath home located in the heart of Park Rapids. Offering a great combination of comfort and convenience, this property is just a short walk to downtown shops, area parks, and the beautiful Fishhook River. Nicely updated inside and out including fresh exterior paint, updated vinyl windows, energy-efficient natural gas forced air heating and central air conditioning for year-round comfort. An attached oversized 2-car garage provides plenty of room for vehicles, storage, or hobby space. The backyard offers a nice outdoor setting with a fenced area, perfect for pets or outdoor enjoyment. Clean, updated, and ideally located—this home is ready for

Key facts

• Fenced backyard
• 0.25 acre lot
• 2 garage spots

Tags

• SHORT WALK TO DOWNTOWN
• UPDATED VINYL WINDOWS
• CENTRAL AIR CONDITIONING
• ATTACHED OVERSIZED GARAGE
• FENCED BACKYARD

Property features AI

Exterior

• Parking: Attached garage; Gravel and asphalt surfaces; 2-car garage (approx. 32' x 24')
• Utilities: City water (connected); City sewer (connected); Natural gas; Electric service provided by Minnesota Power
• Home design: Residential property; One and one-half stories; No exterior stairs required for access
• Construction: Frame construction; Asphalt roof; Foundations include block, poured concrete and stone (foundation area ~678)
• Exterior features: Partial split-rail fencing; Irregular lot with medium tree coverage; City street frontage; Publicly maintained road

Interior

• Kitchen: Dishwasher; Range; Refrigerator; Kitchen and dining combined
• Bedrooms: Three bedrooms (one on the main level; two on the upper level)
• Bathrooms: One full bathroom on the upper level; One half bathroom on the main level
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Ceiling fans; Kitchen window; Local area network
• Laundry & utility: Washer; Dryer; Laundry on the upper level

What this means for you Summary

Snapshot

• This is a 3-bed/1.5-bath single-family listed at $174k.

Deal economics

• At list price, monthly cash flow is $-505 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $85k (51.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $86k (50.8% below list).
• Recommended offer: $85k (51.1% below list) — sets the bar for cash-flow.
• Cap rate 2.8% vs local median 2.1% in Park Rapids — 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 73/100 on livability (#240 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, crime D, employment D.
• Park Rapids Public School District (rural): math 37% / reading 48% proficiency, ranked #206 of 301 in MN (top 68%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 129 active listings in the ZIP; 27 units permitted in Hubbard County in 2024 (0 in 5+ unit buildings).

Forward outlook

• In year one you build about $19k of equity ($1k loan paydown + $17k appreciation (10.0% local appreciation)).
• Hubbard County population projected at -12% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• By year 3, paydown + projected appreciation supports a ~$47k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1902 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $85,259 (51.1% below list)

Questions for the listing agent

1. 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?
2. Built in 1902 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
5. 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?
6. 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.
7. 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.
8. 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: 0.49% ✗
• Cap rate: 2.82%
• Cash-on-cash: -12.41%
• DSCR: 0.45
• GRM: 16.9

CMA / ARV

• ARV (median comp): $288,250
• List price: $174,500
• Delta: -39.46%
• Verdict: UNDERPRICED
• Comps: 1 within 2.0 mi

Projected returns pro-forma

10.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 15.6%
• Equity multiple: 2.29×
• Total profit: $62,862
• Equity at exit: $157,203

10-year hold

• IRR: 15.1%
• Equity multiple: 5.31×
• Total profit: $210,419
• Equity at exit: $339,015

Cash invested: $48,860 (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 56470

• Home prices YoY: 5.8%
• Active inventory: 129
• Price-to-rent: 16.9×

Monthly cashflow live

• Estimated rent: $859 medium
• Mortgage (P&I): −$915
• Tax from tax record: −$196 /mo · $2,350/yr
• Insurance: −$73
• HOA: −$0
• Vacancy / Maint / Mgmt: −$180
• Net cashflow: $-505

Break-even live

Break-even rent $1,498

Max offer price $85,259

Occupancy floor —

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: $43,625
• Closing costs: $5,235
• Reserves months: —
• Total cash needed: —

Listing history 3 events

1. 2026-05-11
   status Pending 735-char remark
2. 2026-05-05
   historical Contingent - Inspection 735-char remark
3. 2026-04-28
   listed $174,500 Active 735-char remark

ⓘ 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: $2,350 · $196/mo
• Projected year-2 tax: $2,350 · $196/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ 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 4/10 Moderate
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,306
• − Mortgage interest: −$9,775
• − Property taxes: −$2,350
• − Insurance: −$872
• − Repairs & maintenance: −$824
• − Management: −$824
• − Depreciation: −$5,076
• Taxable loss: −$9,417
• Est. tax savings @ 24.0%: +$2,260
• After-tax cash flow: $-3,802/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: Park Rapids Public School District
• NCES district ID: 2728080
• Math proficiency: 37% ▼ -9.00%
• Reading proficiency: 48% ▼ -3.00%
• Median HH income: $45,641
• Composite: 36.11/100
• National rank: #4751
• State rank: #206 of 301 in MN

Livability — Park Rapids

• Score: 73/100
• State rank: #240
• US rank: #5130

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Park Rapids, MN
• Population (ZIP): 10,859

Population outlook (Hubbard County) Hauer SSP2

• Today (2025): 20,512 people
• By 2030: 20,275 · -1.2%
• By 2040: 19,429 · -5.3%
• By 2050: 18,093 · -11.8%
• By 2075: 14,903 · -27.3%
• By 2100: 10,994 · -46.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (91%)
• Race & ethnicity: White 91% Two or more races 4% Hispanic / Latino 2%
• Common ancestry: Portuguese 16% Romanian 3% Lithuanian 2%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 1%

Political lean MEDSL · Hubbard

• 2024 margin: Solid R (+31.5) · D 33.4% · R 64.9% · Other 1.7%
• 2008→2024 swing: -17.0pp toward R · 2008: -14.5pp · 2024: -31.5pp
• All cycles: 2024: R+31.5 2020: R+28.8 2016: R+33.6 2012: R+16.9 2008: R+14.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 15.99%
• Current HPI: 294.1751
• 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

+0.3% since first listed

4 events — show timeline

• 2026-06-12 Sold (MLS) $175,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-11 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-05 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-28 Listed $174,500 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+8.8%/yr

Latest (2025): $2,350 · -0.1% YoY. Source: county tax records.