Minneapolis › Bancroft

1537 E 38th St

Minneapolis, MN · Bancroft · Listing office ↗ · Find the listing ↗

Needs more info before these numbers mean much. The city's rental license covers 4 unit(s); this analysis counts 5.

Asking price: $680,000
Monthly cash flow: −$508
Estimated rent: $6,150/mo
Break-even price: $584,485

Adjust these numbers in the calculator See the full breakdown

The numbers

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

Estimated rent per unit Estimate

2 bed / 1 bath (est.)$1,350 $1,150–$1,550
2 bed / 1 bath (est.)$1,350 $1,150–$1,550
2 bed / 1 bath (est.)$1,350 $1,150–$1,550
1 bed / 1 bath (est.)$1,050 $900–$1,200
1 bed / 1 bath (est.)$1,050 $900–$1,200

Rough screening estimate from bedroom count only ($750 + $300 per bedroom, ±15%). Not comparable-rental data; a RentCast estimate replaces it for the top candidates. Confidence: low.

Rent rules: No rent cap.

Price: $680,000
Monthly cash flow: −$508
Cash to close: $156,400
Cap rate: 5.5%
Cash-on-cash: −3.9%
DSCR: 0.86×
GRM: 9.2
Price per unit: $136,000
Price that breaks even: $584,485
Rent that breaks even: $6,819/mo
Cash flow turns positive: year 7
Year 30: property vs stocks: $2.28M vs $1.32M

Monthly breakdown

Rent	$6,150
Vacancy (6%)	−$369
Collected	$5,781
Property tax Public record	−$586
Insurance Estimate	−$492
Water, sewer, trash Estimate	−$425
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (9% of rent)	−$554
Capital reserve (9% of rent)	−$554
Net operating income	$3,111
Mortgage (principal + interest)	−$3,619
Cash flow	−$508
Principal paid down (equity, not cash)	$461

Cash flow each year

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

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

This propertyStocks at 7%

Year 30 (loan paid off): property $2.28M, stocks $1.32M. The property wins.

How those totals add up

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $612,000 of principal by year 30	$0
Plus rental profits, invested at 7%$299,966 of profit by year 30, before investment growth	$464,481
What you'd walk away with	$2,015,988
If you put the same money in stocks
Cash to close ($88,400) invested at 7%	$672,923
Monthly shortfalls ($84,024 total by yr 30) investedThe money you'd have put into the building while it lost money	$503,158
What you'd walk away with	$1,176,082
Building minus stocks	$839,906

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $612,000 of principal by year 30	$0
Plus rental profits, invested at 7%$109,215 of profit by year 30, before investment growth	$141,408
What you'd walk away with	$1,692,915
If you put the same money in stocks
Cash to close ($88,400) invested at 7%	$672,923
Monthly shortfalls ($190,309 total by yr 30) investedThe money you'd have put into the building while it lost money	$989,395
What you'd walk away with	$1,662,319
Building minus stocks	$30,596

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $603,000 of principal by year 30	$0
Plus rental profits, invested at 7%$314,337 of profit by year 30, before investment growth	$493,938
What you'd walk away with	$2,022,628
If you put the same money in stocks
Cash to close ($87,100) invested at 7%	$663,027
Monthly shortfalls ($76,569 total by yr 30) investedThe money you'd have put into the building while it lost money	$463,002
What you'd walk away with	$1,126,029
Building minus stocks	$896,599

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $603,000 of principal by year 30	$0
Plus rental profits, invested at 7%$118,417 of profit by year 30, before investment growth	$155,569
What you'd walk away with	$1,684,259
If you put the same money in stocks
Cash to close ($87,100) invested at 7%	$663,027
Monthly shortfalls ($177,686 total by yr 30) investedThe money you'd have put into the building while it lost money	$933,943
What you'd walk away with	$1,596,970
Building minus stocks	$87,289

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $544,000 of principal by year 30	$0
Plus rental profits, invested at 7%$417,818 of profit by year 30, before investment growth	$725,088
What you'd walk away with	$2,276,594
If you put the same money in stocks
Cash to close ($156,400) invested at 7%	$1,190,557
Monthly shortfalls ($20,650 total by yr 30) investedThe money you'd have put into the building while it lost money	$132,600
What you'd walk away with	$1,323,156
Building minus stocks	$953,438

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $544,000 of principal by year 30	$0
Plus rental profits, invested at 7%$188,513 of profit by year 30, before investment growth	$273,059
What you'd walk away with	$1,824,565
If you put the same money in stocks
Cash to close ($156,400) invested at 7%	$1,190,557
Monthly shortfalls ($88,382 total by yr 30) investedThe money you'd have put into the building while it lost money	$489,880
What you'd walk away with	$1,680,437
Building minus stocks	$144,128

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $536,000 of principal by year 30	$0
Plus rental profits, invested at 7%$433,147 of profit by year 30, before investment growth	$762,245
What you'd walk away with	$2,290,935
If you put the same money in stocks
Cash to close ($154,100) invested at 7%	$1,173,049
Monthly shortfalls ($16,818 total by yr 30) investedThe money you'd have put into the building while it lost money	$109,425
What you'd walk away with	$1,282,474
Building minus stocks	$1,008,461

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $536,000 of principal by year 30	$0
Plus rental profits, invested at 7%$199,371 of profit by year 30, before investment growth	$292,756
What you'd walk away with	$1,821,446
If you put the same money in stocks
Cash to close ($154,100) invested at 7%	$1,173,049
Monthly shortfalls ($80,079 total by yr 30) investedThe money you'd have put into the building while it lost money	$449,246
What you'd walk away with	$1,622,295
Building minus stocks	$199,151

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $510,000 of principal by year 30	$0
Plus rental profits, invested at 7%$485,878 of profit by year 30, before investment growth	$898,096
What you'd walk away with	$2,449,602
If you put the same money in stocks
Cash to close ($190,400) invested at 7%	$1,449,373
Monthly shortfalls ($7,277 total by yr 30) investedThe money you'd have put into the building while it lost money	$49,200
What you'd walk away with	$1,498,574
Building minus stocks	$951,028

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,650,538
Minus 6% selling cost	−$99,032
Minus loan still owedTenants' rent paid down all $510,000 of principal by year 30	$0
Plus rental profits, invested at 7%$237,559 of profit by year 30, before investment growth	$366,132
What you'd walk away with	$1,917,638
If you put the same money in stocks
Cash to close ($190,400) invested at 7%	$1,449,373
Monthly shortfalls ($55,994 total by yr 30) investedThe money you'd have put into the building while it lost money	$326,546
What you'd walk away with	$1,775,920
Building minus stocks	$141,718

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $502,500 of principal by year 30	$0
Plus rental profits, invested at 7%$501,820 of profit by year 30, before investment growth	$941,392
What you'd walk away with	$2,470,082
If you put the same money in stocks
Cash to close ($187,600) invested at 7%	$1,428,059
Monthly shortfalls ($5,256 total by yr 30) investedThe money you'd have put into the building while it lost money	$35,935
What you'd walk away with	$1,463,994
Building minus stocks	$1,006,088

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,626,266
Minus 6% selling cost	−$97,576
Minus loan still owedTenants' rent paid down all $502,500 of principal by year 30	$0
Plus rental profits, invested at 7%$249,346 of profit by year 30, before investment growth	$389,996
What you'd walk away with	$1,918,686
If you put the same money in stocks
Cash to close ($187,600) invested at 7%	$1,428,059
Monthly shortfalls ($49,818 total by yr 30) investedThe money you'd have put into the building while it lost money	$293,849
What you'd walk away with	$1,721,908
Building minus stocks	$196,778

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.

Red flags and opportunities

Watch for

highThe city's rental license covers 4 unit(s); this analysis counts 5. Public record: Minneapolis Active Rental Licenses: 1537 38TH ST E, units=4
mediumRental license Tier 2: the city has flagged more violations than typical; expect more frequent inspections and repair orders. Public record: Minneapolis Active Rental Licenses: 1537 38TH ST E, grade/tier=Tier 2, status=Active
mediumFlat roof per the city assessor: get its age and a moisture inspection. Public record: Hennepin County parcel 1102824110068: roof=Flat, exterior=WOOD
mediumBought for $445,000 in Mar 2025; asking is 53% more 19 months later. Ask what was done to justify the jump. Public record: Hennepin County parcel 1102824110068: last sale 2025-03-01, $445,000

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 209 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 Public recordHennepin County record, current payable year (non-homestead)	$7,037
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$5,900
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$425
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. built 1911: +1 pt capital reserve; 8 bedrooms: +1 pt repairs for wear	9% / 9%

County record Public record

Recorded as	apartment 4 or 5 unit
Living units	5
Year built	1911
Market value (2026)	$372,000
Property tax	$7,037
Special assessments	none
Homestead	no
Last sale	2025-03-01 · $445,000

Source: Hennepin County parcel records.

City rental license

CHOWN: 4 unit(s), Tier 2, status active, renews 2027-03-01.

Nearest highway

MN 55, about 1634 m away.

Crime in Bancroft

126 incidents in the last 12 months (37 per 1,000 residents), −7% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).

Status history

2026-03-07New at $680,000