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206 3rd St

Carlton, MN · View the listing ↗

Far off

Photos, via Realtor.com.

Asking price
$475,000
2 units · $238K per unit
Monthly cash flow
−$1,020
at 20% down, 7%
Estimated rent
$2,950/mo
low confidence · region-wide median
Break-even price
$283,369
where cash flow hits $0

Adjust the numbers See the full breakdown

The numbers

Down payment %
Offer $
Management
Interest rate %
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
$475,000
Cash to close
$109,250
Price per unit
$237,500
GRM
13.4

Each month

Cash flow
−$1,020/mo
Cash-on-cash
−11.2%
Cap rate
3.8%
DSCR
0.60×

Break-even

Price that breaks even
$283,369
Rent that breaks even
$4,258/mo

Long run

Year 30: property vs stocks
$1.14M vs $1.48M
Cash flow turns positive
year 21

Monthly

Monthly breakdown

Rent$2,950
Vacancy (6%)−$177
Collected$2,773
Property tax Listing−$329
Insurance Estimate−$234
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$236
Capital reserve (8% of rent)−$236
Net operating income$1,508
Mortgage (principal + interest)−$2,528
Cash flow−$1,020
Principal paid down (equity, not cash)$322

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$1,152,950
Minus 6% selling cost−$69,177
Minus loan still owedTenants' rent paid down all $380,000 of principal by year 30$0
Plus rental profits, invested at 7%$46,256 of profit by year 30, before investment growth$56,850
What you'd walk away with$1,140,623
If you put the same money in stocks
Cash to close ($109,250) invested at 7%$831,639
Monthly shortfalls ($133,850 total by yr 30) investedThe money you'd have put into the building while it lost money$649,574
What you'd walk away with$1,481,213
Building minus stocks−$340,590

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 $1.14M, stocks $1.48M. 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.

3 bed estimate $1,475/mo · range $1,275–$1,700 · 141 rentals across Greater Minnesota

AddressRentBd / BaSq ftDistanceListedType
1741 Sahlman Ave, Cloquet $1,440 3 / 2 1,080 3.4 mi 2025-01-03 Apartment
13302 W 3rd St, Duluth $1,650 3 / 1 1,600 7.0 mi 2025-08-26 Apartment
5725 W 8th St Unit 2, Duluth $1,500 3 / 1 1,300 13.3 mi 2023-07-27 Apartment
101 N 30th Ave W, Duluth $1,030 3 / 1 — 15.1 mi 2026-07-14 Apartment
831 W 3rd St, Duluth $1,475 3 / 1 — 16.8 mi — Apartment
421 N 1st Ave W, Duluth $1,200 3 / 1 913 17.4 mi 2026-07-17 Apartment
504 N 2nd Ave E, Duluth $1,200 3 / 1 972 17.7 mi 2026-09-10 Apartment
322-324 E 5th St, Duluth $1,325 3 / 1 818 17.8 mi 2026-05-02 Apartment
407 E 5th St Unit Lower, Duluth $1,700 3 / 1 1,200 17.9 mi 2024-04-05 Duplex triplex
110-114 N 6th Ave E, Duluth $1,395 3 / 1 862 18.1 mi 2026-06-05 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 206 3RD ST
  • mediumAsking is $191,631 above the price where cash flow breaks even ($283,369) at the default scenario. Based on: Derived: price $475,000 vs. break-even $283,369

Opportunities

  • Long time on market: room to negotiate. Based on: Listing data: 103 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.$3,946
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,808
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 rate8% / 8%

Status history

  • New at $475,000

From the listing Listing

Listed as5-10 units
Property tax, 2026$3,946
CountyCarlton County
Parcel number15-010-2140 and 15-010-2160

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 Carlton on rental licensing before you buy.