1038 W 3rd Ave

Grand Marais, MN · View the listing ↗

Far off

40 photos

Photos, via Realtor.com.

Asking price: $489,000
Monthly cash flow: −$1,664
Estimated rent: $2,200/mo
Break-even price: $176,353

Adjust the numbers See the full breakdown

The numbers

Edit rents, costs and assumptions

Default: 20% down (no PMI), offer at asking, self-managed, 7.00% for 30 years, buyer pays closing costs (3%).

The deal

Price: $489,000
Cash to close: $112,470
Price per unit: $244,500
GRM: 18.5

Each month

Cash flow: −$1,664/mo
Cash-on-cash: −17.8%
Cap rate: 2.3%
DSCR: 0.36×

Break-even

Price that breaks even: $176,353
Rent that breaks even: $4,333/mo

Long run

Year 30: property vs stocks: $1.12M vs $2.42M
Cash flow turns positive: not within 30 years

Monthly

Monthly breakdown

Rent	$2,200
Vacancy (6%)	−$132
Collected	$2,068
Property tax Listing	−$358
Insurance Estimate	−$189
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$176
Capital reserve (8% of rent)	−$176
Net operating income	$939
Mortgage (principal + interest)	−$2,603
Cash flow	−$1,664
Principal paid down (equity, not cash)	$331

Cash flow each year

Rents +3%/yr, costs +3.5%/yr. Red bars are months you'd cover out of pocket.

30 years

How those totals add up

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $440,100 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($63,570) invested at 7%	$483,911
Monthly shortfalls ($569,171 total by yr 30) investedThe money you'd have put into the building while it lost money	$2,015,636
What you'd walk away with	$2,499,547
Building minus stocks	−$1,383,832

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $440,100 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($63,570) invested at 7%	$483,911
Monthly shortfalls ($675,428 total by yr 30) investedThe money you'd have put into the building while it lost money	$2,305,145
What you'd walk away with	$2,789,056
Building minus stocks	−$1,673,341

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $431,100 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($62,270) invested at 7%	$474,015
Monthly shortfalls ($547,345 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,946,023
What you'd walk away with	$2,420,038
Building minus stocks	−$1,327,139

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $431,100 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($62,270) invested at 7%	$474,015
Monthly shortfalls ($653,602 total by yr 30) investedThe money you'd have put into the building while it lost money	$2,235,532
What you'd walk away with	$2,709,547
Building minus stocks	−$1,616,648

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $391,200 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($112,470) invested at 7%	$856,150
Monthly shortfalls ($438,848 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,561,754
What you'd walk away with	$2,417,904
Building minus stocks	−$1,302,189

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $391,200 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($112,470) invested at 7%	$856,150
Monthly shortfalls ($545,105 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,851,263
What you'd walk away with	$2,707,414
Building minus stocks	−$1,591,699

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $383,200 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($110,170) invested at 7%	$838,642
Monthly shortfalls ($419,687 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,501,423
What you'd walk away with	$2,340,065
Building minus stocks	−$1,247,166

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $383,200 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($110,170) invested at 7%	$838,642
Monthly shortfalls ($525,944 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,790,932
What you'd walk away with	$2,629,574
Building minus stocks	−$1,536,675

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $366,750 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($136,920) invested at 7%	$1,042,270
Monthly shortfalls ($380,288 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,377,367
What you'd walk away with	$2,419,637
Building minus stocks	−$1,303,922

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,186,931
Minus 6% selling cost	−$71,216
Minus loan still owedTenants' rent paid down all $366,750 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,115,715
If you put the same money in stocks
Cash to close ($136,920) invested at 7%	$1,042,270
Monthly shortfalls ($486,545 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,666,876
What you'd walk away with	$2,709,146
Building minus stocks	−$1,593,431

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $359,250 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($134,120) invested at 7%	$1,020,956
Monthly shortfalls ($362,325 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,320,806
What you'd walk away with	$2,341,762
Building minus stocks	−$1,248,863

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,162,659
Minus 6% selling cost	−$69,760
Minus loan still owedTenants' rent paid down all $359,250 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$1,092,899
If you put the same money in stocks
Cash to close ($134,120) invested at 7%	$1,020,956
Monthly shortfalls ($468,582 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,610,316
What you'd walk away with	$2,631,271
Building minus stocks	−$1,538,372

Future dollars. At 3% inflation, divide year-30 figures by about 2.4 for today's buying power. Rental profits are assumed invested, not spent.

30 years: this property vs. the same money in stocks

This propertyStocks at 7%

Year 30 (loan paid off): property $1.12M, stocks $2.42M. Stocks win.

Comparable rentals

The closest rental listings with each unit's bedroom count, as of 2026-10-04. The estimate is the median asking rent of every rental we found nearby (the count is shown for each); houses are left out. Asking rents from Realtor.com rental listings, not signed leases.

2 bed estimate $1,200/mo · range $975–$1,400 · 465 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
11 Alta Miikana Rd Unit 12D, Lutsen	$1,639	2 / 1	864	18.1 mi	2026-10-02	Apartment
410 W 3rd Ave N, Aurora	$970	2 / 1	840	90.3 mi	—	Apartment
4428 E Superior St, Duluth	$1,200	2 / 1	1,841	102.5 mi	2026-09-02	Apartment
3780 London Rd, Duluth	$2,090	2 / 2	1,100	103.2 mi	2025-04-10	Apartment
110 Anderson Dr # 44, Virginia	$1,065	2 / 1	850	103.3 mi	—	Apartment
206 S 4th Ave E Unit 104, Virginia	$995	2 / 1	—	103.7 mi	—	Apartment
201 N 5th Ave, Virginia	$958	2 / 1	—	103.8 mi	2026-02-01	Apartment
707 S 5th Ave Apt 3, Virginia	$995	2 / 1	—	103.9 mi	2026-04-08	Apartment
4835 Howard Gnesen Rd Apt 305, Duluth	$1,400	2 / 1	850	103.9 mi	2026-06-01	Apartment
320 S 19th Ave E Apt B, Duluth	$1,075	2 / 1	—	104.9 mi	2026-09-21	Apartment

1 bed estimate $1,000/mo · range $850–$1,300 · 357 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
861 5th Ave W, Grand Marais	$1,950	1 / 1	598	0.3 mi	2025-05-14	Apartment
1501 W Highway 61, Grand Marais	$1,850	1 / 1	—	1.1 mi	2026-09-16	Apartment
900 Dorchester Dr, Hoyt Lakes	$725	1 / 1	665	85.5 mi	2024-04-15	Apartment
3780 London Rd, Duluth	$1,615	1 / 1	750	103.2 mi	2025-04-10	Apartment
25 W Redwing St Apt 18, Duluth	$1,125	1 / 1	513	103.3 mi	—	Apartment
406 S 4th Ave W Apt 204, Virginia	$940	1 / 1	368	103.8 mi	2026-09-17	Apartment
201 N 5th Ave, Virginia	$882	1 / 1	—	103.8 mi	2026-02-01	Apartment
604 7th St S Unit 2, Virginia	$850	1 / 1	—	104.0 mi	—	Apartment
606 7th St S Unit 2, Virginia	$880	1 / 1	—	104.0 mi	—	Apartment
100 N Van Buren Ave, Eveleth	$1,050	1 / 1	675	104.0 mi	—	Apartment

On the maps, this property and comparable rentals. Comparable rentals and rent estimate: Realtor.com rental listings. Rents are asking rents from listings; check them against the actual leases.

Red flags and opportunities

Watch for

mediumCouldn't match this address to a county parcel record, so taxes and unit count are unverified. Public record: County parcels: no match for 1038 3RD AVE W
mediumAsking is $312,647 above the price where cash flow breaks even ($176,353) at the default scenario. Based on: Derived: price $489,000 vs. break-even $176,353

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 120 days on market

Questions for the agent

Can we see the current leases and a rent roll, with move-in dates?
What did water/sewer/trash, heat and electric cost the owner over the last 12 months?
How old are the roof, boiler or furnaces, water heaters and electrical panels?
Is the building licensed as a rental for this many units, and when was the last city inspection?
Any special assessments pending, and will the seller pay them off at closing?

Standard questions worth asking about any building.

What the records say

Where each number comes from

Property tax / yr Listinglisting, tax year 2026. The tax the listing states. If the seller lives there it may be at the lower homestead rate; an investor owner pays the non-homestead rate, often 20–40% more on the owner's unit.	$4,296
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,272
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$170
Heat / mo Assumptionassumption. tenants pay heat; confirm with the agent	$0
Lawn care / mo Assumptionassumption. $120/mo for 6 months, spread over 12; no snow removal	$60
Repairs / capital reserve Rulerule. base rate	8% / 8%

Status history

2026-06-07New at $489,000

From the listing Listing

Listed as	duplex
Property tax, 2026	$4,296
County	Cook County
Parcel number	80-060-09=0609

As the listing states it (NorthstarMLS, via Realtor.com). We don't have county records here yet; check the tax, homestead status and special assessments with the county.

Crime, rental-license and vacant-building records are only available for St. Paul and Minneapolis so far. Check with Grand Marais on rental licensing before you buy.