98 South DrTowerMN55706
INVESTMENT ANALYSIS
Investment Verdict
Solid Income98 South Dr, Tower, MN, 55706 in Tower earns a respectable 8.6% gross yield at $209,000, but after the $940/mo mortgage the net cash flow is $193/mo, a tight but positive spread. Expense discipline (vacancy, management, maintenance) will determine whether the margin widens. Ziffy Mortgage's DSCR mortgage (1.59) still qualifies on property income; a larger down payment can improve the cash-flow buffer. Long-term, 5% appreciation projects $57,743 over five years, making equity the dominant return driver. Total projected return: $91,706.
| This Property | National Avg | |
|---|---|---|
| Gross Rental Yield | 8.6% | 6.2% |
| Monthly Cash Flow | $193 | $180 |
National averages based on 2024–2025 U.S. residential rental market data. Content is user-generated and unverified.
DSCR Loan Qualification
| Monthly Rental Income | $1,498 |
| Total Monthly Debt Service | $1,222 |
| DSCR Ratio | 1.23x |
Ziffy Mortgage: Your DSCR most likely meets our 1.0+ requirement, so you'll most probably qualify for our standard DSCR investment loan program. To pre-qualify, 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 1963
0.52 Acres lot
$N/A/sqft
No HOA
Neighborhood Data
Neighborhood data shown for ZIP Code: 55706, Babbitt, MN area.
Housing Distribution
Housing Statistics
| Category | Value |
|---|---|
| Total HU (Housing Units) | 1,215 (100%) |
| Owner Occupied HU | 715 (58.8%) |
| Renter Occupied HU | 133 (10.9%) |
| Vacant Housing Units | 367 (30.2%) |
| Median Home Value | $114,063 |
| Average Home Value | $209,073 |
Housing Distribution
Address Breakdown
Residential
932
Single Family
885
Multi-Family
47
Businesses
59
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 1963
0.52 Acres lot
$N/A/sqft
No HOA
Neighborhood Data
Neighborhood data shown for ZIP Code: 55706, Babbitt, MN area.
Housing Distribution
Housing Statistics
| Category | Value |
|---|---|
| Total HU (Housing Units) | 1,215 (100%) |
| Owner Occupied HU | 715 (58.8%) |
| Renter Occupied HU | 133 (10.9%) |
| Vacant Housing Units | 367 (30.2%) |
| Median Home Value | $114,063 |
| Average Home Value | $209,073 |
Housing Distribution
Address Breakdown
Residential
932
Single Family
885
Multi-Family
47
Businesses
59
Nearby investment properties with comparable rents
Nearby investment properties with comparable prices
Listed by: Norma Jean Jofs • Next Door Realty
Mls Name: Lake Superior Area Realtors
Mls Provider:
Mls ID: #6117181
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.