208 State 371 SW · Backus, MN 56435

$224,900

3 bd · 2.0 ba · 1,120 sqft · SingleFamily public records · 12 Days on market

Built 1994 3.96 ac lot

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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).

• Cash flow +14.0/30.0
• ARV discount +7.5/15.0
• DSCR +4.2/10.0
• Livability +3.3/5.0
• Schools +3.0/10.0
• 1% rule +2.7/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.5/10.0

Listing remarks MLS

Do not miss out on this great opportunity to own a 3 bedroom, 2 bath on 5 acres. Home features hard floors, large bedrooms, deck, and plenty of space. With some cosmetic updates and sitting on a great location right off of 371, you can't go wrong with the price!

Key facts

• 3.96 acre lot
• Garage
• Built 1994

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $225k.

Deal economics

• At list price, monthly cash flow is $28 ($336/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $172k (23.4% below list).
• Recommended offer: $172k (23.4% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 66/100 on livability (#493 in MN) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime D+, employment D+.
• Pine River-Backus School District (rural): math 26% / reading 46% proficiency, ranked #250 of 301 in MN (top 83%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 46 active listings in the ZIP; 285 units permitted in Cass County in 2024 (0 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.
• Cass County population projected at -20% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• 8 sale attempts since 20y 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 $78k; list at $225k implies a 188% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Recommended offer $172,295 (23.4% below list)

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. 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?
3. 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?
4. 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?
5. 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.
6. 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.
7. 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: 0.77% ✗
• Cap rate: 6.44%
• Cash-on-cash: 0.53%
• DSCR: 1.02
• GRM: 10.9

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: -15.5%
• Equity multiple: 0.45×
• Total profit: $-34,769
• Equity at exit: $33,533

10-year hold

• IRR: -7.1%
• Equity multiple: 0.55×
• Total profit: $-28,424
• Equity at exit: $19,445

Cash invested: $62,972 (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 56435

• Home prices YoY: -3.5%
• Active inventory: 46
• Price-to-rent: 10.9×

Monthly cashflow live

• Estimated rent: $1,723 medium
• Mortgage (P&I): −$1,179
• Tax from tax record: −$60 /mo · $720/yr
• Insurance: −$94
• HOA: −$0
• Vacancy / Maint / Mgmt: −$362
• Net cashflow: $28

Break-even live

Break-even rent $1,687

Max offer price $224,900

Occupancy floor 93%

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: $56,225
• Closing costs: $6,747
• Reserves months: —
• Total cash needed: —

Listing history 26 events

1. 2026-04-27
   status Pending
2. 2026-04-18
   historical Contingent - Subject to Financing
3. 2026-04-16
   listed $224,900 Active
4. 2026-04-02
   historical $224,900
5. 2025-11-28
   historical
6. 2025-09-05
   price $225,000
7. 2025-08-08
   listed $229,900 Active
8. 2025-08-06
   historical
9. 2018-07-11
   soldstatus $78,000
10. 2018-06-26
    soldstatus $78,000 Sold 262-char remark

    Show marketing remark (262 chars)

    Do not miss out on this great opportunity to own a 3 bedroom, 2 bath on 5 acres. Home features hard floors, large bedrooms, deck, and plenty of space. With some cosmetic updates and sitting on a great location right off of 371, you can't go wrong with the price!

11. 2018-05-22
    status Pending 262-char remark

    Show marketing remark (262 chars)

    Do not miss out on this great opportunity to own a 3 bedroom, 2 bath on 5 acres. Home features hard floors, large bedrooms, deck, and plenty of space. With some cosmetic updates and sitting on a great location right off of 371, you can't go wrong with the price!

12. 2018-05-10
    historical Contingent - Inspection 262-char remark

    Show marketing remark (262 chars)

    Do not miss out on this great opportunity to own a 3 bedroom, 2 bath on 5 acres. Home features hard floors, large bedrooms, deck, and plenty of space. With some cosmetic updates and sitting on a great location right off of 371, you can't go wrong with the price!

13. 2018-04-25
    listed $79,900 Active 262-char remark

    Show marketing remark (262 chars)

    Do not miss out on this great opportunity to own a 3 bedroom, 2 bath on 5 acres. Home features hard floors, large bedrooms, deck, and plenty of space. With some cosmetic updates and sitting on a great location right off of 371, you can't go wrong with the price!

14. 2017-07-10
    soldstatus $60,000
15. 2017-07-06
    soldstatus $60,000 Sold
16. 2017-06-19
    status Pending
17. 2017-06-15
    listed $60,000 Active
18. 2008-08-02
    historical
19. 2007-10-26
    listed $103,000
20. 2007-10-26
    historical
21. 2007-05-25
    listed $103,000
22. 2007-05-01
    historical
23. 2007-01-04
    listed $103,000
24. 2006-12-07
    historical
25. 2006-06-07
    listed $103,000
26. 1999-08-01
    soldstatus $66,900

ⓘ 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: $720 · $60/mo
• Projected year-2 tax: $1,619 · $135/mo
• Expected delta: +$899/yr (+$75/mo · 124.9%)

ⓘ 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 5/10 Major
• 🌡 Heat 1/10 Low 7 d/yr ≥93°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 2 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $20,675
• − Mortgage interest: −$12,598
• − Property taxes: −$720
• − Insurance: −$1,124
• − Repairs & maintenance: −$1,654
• − Management: −$1,654
• − Depreciation: −$6,543
• Taxable loss: −$3,618
• Est. tax savings @ 24.0%: +$868
• After-tax cash flow: $1,204/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: Pine River-Backus School District
• NCES district ID: 2728970
• Math proficiency: 26% ▼ -21.00%
• Reading proficiency: 46% ▼ -9.00%
• Median HH income: $42,909
• Composite: 30.42/100
• National rank: #6239
• State rank: #250 of 301 in MN

Livability — Backus

• Score: 66/100
• State rank: #493
• US rank: #11903

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 2,912

Population outlook (Cass County) Hauer SSP2

• Today (2025): 27,371 people
• By 2030: 26,311 · -3.9%
• By 2040: 23,945 · -12.5%
• By 2050: 21,889 · -20.0%
• By 2075: 18,435 · -32.6%
• By 2100: 14,478 · -47.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Two or more races 7% Asian 1%
• Common ancestry: Portuguese 11% Romanian 4% Lithuanian 3%
• Foreign-born: 1% · South Korea
• Languages at home: 97% English-only · Spanish 1% Russian/Polish/Slavic 1% French/Haitian/Cajun 0%

Political lean MEDSL · Cass

• 2024 margin: Solid R (+33.4) · D 32.6% · R 66.0% · Other 1.3%
• 2008→2024 swing: -24.9pp toward R · 2008: -8.5pp · 2024: -33.4pp
• All cycles: 2024: R+33.4 2020: R+28.9 2016: R+31.7 2012: R+13.1 2008: R+8.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -9.07%
• Current HPI: 252.3676
• 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

+236.2% since first listed

26 events — show timeline

• 2026-04-27 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-18 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-16 Listed $224,900 NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-02 Coming Soon $224,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-11-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-09-05 Price Changed $225,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-08-08 Listed $229,900 NORTHSTARMLS as Distributed by MLS Grid
• 2025-08-06 Coming Soon — NORTHSTARMLS as Distributed by MLS Grid
• 2018-07-11 Sold (Public Records) $78,000 Public Records
• 2018-06-26 Sold (MLS) $78,000 NORTHSTARMLS as Distributed by MLS Grid
• 2018-05-22 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2018-05-10 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2018-04-25 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid
• 2017-07-10 Sold (Public Records) $60,000 Public Records
• 2017-07-06 Sold (MLS) $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2017-06-19 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2017-06-15 Listed $60,000 NORTHSTARMLS as Distributed by MLS Grid
• 2008-08-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-26 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-10-26 Listed $103,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-05-25 Listed $103,000 NORTHSTARMLS as Distributed by MLS Grid
• 2007-05-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2007-01-04 Listed $103,000 NORTHSTARMLS as Distributed by MLS Grid
• 2006-12-07 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2006-06-07 Listed $103,000 NORTHSTARMLS as Distributed by MLS Grid
• 1999-08-01 Sold (Public Records) $66,900 Public Records

Property tax history

+6.2%/yr

Latest (2025): $720 · +9.8% YoY. Source: county tax records.