Factor in financing to see your actual return on invested capital in Bemidji.
$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-423
after all expenses
Annual Cash Flow
$-5,074
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,247
Monthly Cash Flow$-423
Is Bemidji a Good Place to Invest in Rental Property?
Bemidji, MN has a population of 50,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $255,000 paired with median rents of $1,420/mo produces an estimated cap rate of 4.44%.
Property taxes at 1.12% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 4.2x, homes cost about 4.2 times the local median income of $60,800. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.6% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Bemidji presents moderate opportunities. Cap rates near 4.44% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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