Cottonwood Real Estate

Welcome to Cottonwood, Minnesota—a charming small town that perfectly blends the tranquility of rural living with the warmth of a close-knit community. Nestled in the heart of Lyon County, Cottonwood is a hidden gem that offers residents a peaceful lifestyle surrounded by picturesque landscapes and friendly neighbors.

With a population of just over 1,000, Cottonwood boasts a strong sense of community where everyone knows each other by name. The town's rich history is reflected in its well-preserved architecture and local landmarks, creating a delightful backdrop for daily life. Enjoy leisurely strolls through the quaint downtown area, where you’ll find unique shops, cozy cafes, and local eateries that serve up delicious home-cooked meals.

Outdoor enthusiasts will appreciate Cottonwood's abundant recreational opportunities. The nearby parks and nature trails provide the perfect setting for hiking, biking, and picnicking. The Cottonwood River meanders through the area, offering fishing and kayaking for those who love to spend time on the water.

Families will find Cottonwood to be an ideal place to raise children, with excellent schools and a variety of community events that bring residents together throughout the year. From summer festivals to winter holiday celebrations, there’s always something happening in Cottonwood.

Whether you’re looking to settle down, start a family, or simply enjoy a slower pace of life, Cottonwood, MN, welcomes you with open arms. Explore the real estate opportunities in this delightful town and discover the perfect place to call home. Your dream lifestyle awaits in Cottonwood!

Newest Listings in Cottonwood

$249,900

7140136 MLS

Prime Main Street investment opportunity offering exceptional multi-stream income and significant commercial upside. The upper level features five residential apartments, including two 1-bedroom units and three 2-bedroom units, delivering steady, in-place cash flow. The street level offers remarkable versatility across multiple distinct spaces with independent entrances, featuring a 2,700 sq. ft. space ready for build out, a 1,540 sq. ft. space that was recently updated and ready for move in, and an additional 680 sq. ft. storage or future expansion unit for the 2,700 sf space. Both main sections include dedicated full basements for expansive on-site storage or operational capacity. Key capital improvements include a durable spray-foam roof finished with a protective poly coating, three coats of commercial paint, and fresh sealant. With residential revenue already established and high-visibility commercial spaces ready to maximize returns, this versatile asset is a rare portfolio powerhouse.

104 W Main Street, Cottonwood

Listing courtesy of RE/MAX Results.

$70,000

3 Beds ⋅ 1 Baths ⋅ 7144458 MLS

Looking for your next project? This charming 1,000 square-foot fixer-upper offers an opportunity to transform a house into a home. Featuring 3 bedrooms, 1 bathroom, and convenient main-level living, this property has a practical layout and plenty of potential for the right buyer. Close to the park in the welcoming community of Cottonwood, this home is ready for someone with a vision to bring out its possibilities. Whether you're looking to renovate, create a comfortable residence, or add to your investment portfolio, this property is worth a look. Bring your ideas, your tools, and your imagination!

168 E Park Street, Cottonwood

Listing courtesy of Full Circle Realty Group.

$60,000

7135246 MLS

Desirable Northwood Drive location across from Cottonwood Lake! Located in Cottonwood, MN – a friendly and welcoming community with beautiful lake access, and genuine small-town warmth. This offering includes two lots, providing an excellent opportunity to build your new home in one of Cottonwood’s sought-after areas. One lot is buildable and offers the ideal site for your future home or investment, while the second lot provides additional space for a larger yard, privacy, outdoor enjoyment, or other permitted uses. There is a network that includes excellent local builders, tradespeople, and excavators who consistently deliver quality work. A connection can be made between an interested buyer and these trusted professionals to help them build environmentally friendly, healthy homes with minimal maintenance costs. This tree-lined street perfectly captures that hometown feel. These properties are within walking distance to extensive trails, located in an ideal quiet neighborhood to call home.

190 and 180 Northwood Drive, Cottonwood

Listing courtesy of Marshall Area Homes.

Start Your Search

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity Program of the Regional Multiple Listing Service of Minnesota. Real estate listings held by brokerage firms other this firm are marked with the Broker Reciprocity logo. Information Deemed Reliable But Not Guaranteed. Property locations as displayed on any map are best approximations only and exact locations should be independently verified.

Listing data © 2026 Regional Multiple Listing Service of Minnesota. All rights reserved. By searching, you agree to the EULA.