85 Caps TrlLutsenMN55612
INVESTMENT ANALYSIS
Investment Verdict
Appreciation PlayThe investment thesis at 85 Caps Trl, Lutsen, MN, 55612 in Lutsen is capital appreciation. Rental yield 2.49%. The 2.49% gross yield at $905,700 falls below cash-flow thresholds, but 5% annual value growth is forecast to deliver $250,228 in additional equity by year five, an equity gain that can outpace many higher-yield markets. Ziffy Mortgage finances appreciation-play assets via DSCR (0.46) without U.S. credit history; structure with a larger down payment to optimise coverage. Total projected return: $99,060.
| This Property | City Avg | |
|---|---|---|
| Gross Rental Yield | 2.5% | 6.0% |
| Monthly Cash Flow | $(3,803) | $1,200 |
City averages based on Lutsen market data in our database. Property projections are estimates.
DSCR Loan Qualification
| Monthly Rental Income | $1,878 |
| Total Monthly Debt Service | $5,320 |
| DSCR Ratio | 0.35x |
Ziffy Mortgage typically prefers a DSCR of 1.0+, but in some cases you may qualify with a DSCR below 1. To explore if this deal qualifies for an investment mortgage, book time with your loan officer →
Estimates assume 6.0% rate / 30-yr fixed, 30% down, 1% tax, 0.5% insurance. Not a commitment to lend.
Single Family
Built in 2013
1.50 Acres lot
$N/A/sqft
$300 annually HOA
Neighborhood Data
Neighborhood data shown for ZIP Code: 55612, Lutsen, MN area.
Housing Distribution
Housing Statistics
| Category | Value |
|---|---|
| Total HU (Housing Units) | 728 (100%) |
| Owner Occupied HU | 204 (28.0%) |
| Renter Occupied HU | 43 ( 5.9%) |
| Vacant Housing Units | 481 (66.1%) |
| Median Home Value | $420,455 |
| Average Home Value | $442,169 |
Housing Distribution
Address Breakdown
Residential
93
Single Family
93
Multi-Family
0
Businesses
42
Nearby investment properties with comparable rents
Nearby investment properties with comparable prices
Ziffy AI Summary
A quick, investor-focused snapshot highlighting income strength, yield potential.
| Key metrics | Value |
|---|---|
| Price | $399,900 |
| Est. Rent | $3,200/mo |
| ROI | 18% |
- Attractive rent-to-price ratio for income stability
- Good fit for DSCR financing with healthy coverage
Single Family
Built in 2013
1.50 Acres lot
$N/A/sqft
$300 annually HOA
Neighborhood Data
Neighborhood data shown for ZIP Code: 55612, Lutsen, MN area.
Housing Distribution
Housing Statistics
| Category | Value |
|---|---|
| Total HU (Housing Units) | 728 (100%) |
| Owner Occupied HU | 204 (28.0%) |
| Renter Occupied HU | 43 ( 5.9%) |
| Vacant Housing Units | 481 (66.1%) |
| Median Home Value | $420,455 |
| Average Home Value | $442,169 |
Housing Distribution
Address Breakdown
Residential
93
Single Family
93
Multi-Family
0
Businesses
42
Nearby investment properties with comparable rents
Nearby investment properties with comparable prices
Listed by: Linda Garrity • Songbird Realty MN
Mls Name: Lake Superior Area Realtors
Mls Provider:
Mls ID: #6122042
Disclaimer: Information is supplied by seller and other third parties and has not been verified. Open House information is subject to change without notice. Copyright 2025 Lake Superior Area REALTORS, Inc.® MLS All Rights Reserved.