13104 192 1/2 Ct NW

Elk River, MN 55330

$295,000F

2 bd · 1.0 ba · 1,644 sqft · Built 1995 · SingleFamily · Pending · 37 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,813/mo
• Mortgage (P&I): −$1,547
• Tax + insurance: −$435
• HOA: −$0
• Vac / Maint / Mgmt: −$381
• Net cashflow: $-549/mo
• Annual: $-6,593/yr
• Cap rate: 4.06%
• Cash-on-cash: -7.98%
• DSCR: 0.64
• 1% rule: 0.61%
• Cash to close: $82,600

Investor read

• This is a 2-bed/1.0-bath single-family listed at $295k.
• At list price, monthly cash flow is $-549 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $198k (32.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $181k (38.5% below list).
• It's been on market 37 days — a 3% lower offer ($286k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $181k (38.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#265 in MN) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Independent School District 728 (suburban): math 56% / reading 60% proficiency, ranked #37 of 301 in MN (top 12%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 14% free/reduced lunch — higher-income household profile.
• Zoned schools: Meadowvale Elementary (math 62% / reading 70%, grade B+, #118 of 857 statewide, top 14%, 542 students, 17% FRL); Vandenberge Middle School (math 36% / reading 47%, grade F, #138 of 258 statewide, top 55%, 512 students, 27% FRL); Elk River Senior High (math 60% / reading 57%, grade C, #56 of 471 statewide, top 12%, 1,637 students, 22% FRL).
• Market conditions: 457 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 334 units permitted in Sherburne County in 2024 (58 in 5+ unit buildings).
• 2 sale attempts since 31y ago; this cycle's ask has dropped $55k (16%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $93k; list at $295k implies a 216% gain — meaningful room to come down on a strong offer.
• Cap rate 4.1% vs local median 3.3% in Elk River — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

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 37 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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?
• 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.
• 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.
• 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.