Residential Income
For Sale
$334,900
155 SW 4th, Perham, MN 56573
Historic residential income property with Residential-Multi-Family zoning and natural gas hot water service.
Property Size2,912 SF
Price / SF$138.85
Days on Market12
Property Features for 155 SW 4th
General Information
Standard status
Active
Size
2,912 SF
Property subtype
Residential Income
Zoning
Residential-Multi-Family
Taxes and HOA fees
Annual Taxes
$3,532
Amenities
Natural Gas, Hot Water
Block
Attached
Building Details
Building Size
2,912 SF
Year Built
1886
Stories
2
Listing Agency:
EXP REALTY
(218) 298-0771
Listed By:
Stephen Sweere
(218) 298-0771
Source:
Evrealestate
Added: Jul 31
Changed: Aug 11
Last Checked: Aug 10 at 4:05AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of EXP REALTY
Investment Insights
Based on property information with market context.
This residential income property was built in 1886 and features block construction with natural gas hot water service. The property is designated Residential-Multi-Family under its zoning classification.
Located at 155 SW 4th in Perham, Minnesota, the property is behind United Community Bank and accessed from Main Street. The Otter Tail County location provides a defined setting for a residential income asset.
Located at 155 SW 4th in Perham, Minnesota, the property is behind United Community Bank and accessed from Main Street. The Otter Tail County location provides a defined setting for a residential income asset.
Key Highlights
- Residential‑Multi‑Family zoning
- Built in 1886
- 2,412 property size
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$18,699
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.58%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$373,980
$374.0K
Cap Rate 7%
$267,129
$267.1K
Cap Rate 9%
$207,767
$207.8K
Market Conditions
NOI Build-Up for 2,412 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$35.6K $14.76/SF
− Vacancy
−$1.6K −$0.66/SF
EGI
$34.0K $14.10/SF
− OpEx
−$15.3K −$6.34/SF
NOI
$18.7K $7.75/SF
Area
Otter Tail County, MN
Vacancy
4.50%
Lease Rate
$14.76 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$373,980
Cap Rate 7%
$267,129
Cap Rate 9%
$207,767
Alternative Uses
Best Use
Apartment 5plus
$267.1K
$233.7K – $311.7K
NOI $18,699 @ 7.0% cap · market cap 5.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$524.0K
$458.5K – $611.3K
NOI $36,678 @ 7.0% cap · market cap 10.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
490
Businesses Nearby
Explore this area
Business Placement
Demographics for 56573, MN
7,066
Population
3,632
Households
1.9
Avg Household Size
42
Median Age
29%
College-Educated
91%
High-School Grad
137.5 sq mi
ZIP Area
51
Density / Sq Mi
$68,080
Median Household Income
$44,945
Median Earnings
$805
Median Rent
$256,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Historic residential income property with Residential-Multi-Family zoning and natural gas hot water service.
Where is this residential income property located?
The property is located at 155 SW 4th Perham, MN.
What is the asking price?
The asking price for this property is $334,900.
What are key features of this property?
This property features: Residential‑Multi‑Family zoning; Built in 1886; 2,412 property size
