220 E 7th St

Cash flows

31 photos

Photos, via Realtor.com.

Asking price: $249,900
Monthly cash flow: $733
Estimated rent: $4,000/mo
Break-even price: $387,606

Adjust the numbers See the full breakdown

From the listing

Exceptional 3 Bedroom 4 Bath 4-Plex located on the corner of 7th Street and James Ave. The fourth unit is a commercial space that is currently a laundry service. It was formally a salon and could be converted back to a salon or another apartment. This property has been rented continuously with a solid rental history. Significant remodeling occurred on the property since it was purchased including new roof, medal siding, electric services, mini-splits, paint and some flooring. The property is licensed through the city and the rent is just under $3000/month. The tenants are responsible for paying their own utilities. There is ample parking on the large gravel parking lot and the 3-stall garage. This turn key property is definitely one to look at.

Description from Realtor.com, MLS #7104298. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

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: $249,900
Cash to close: $57,477
Price per unit: $62,475
GRM: 5.2

Each month

Cash flow: $733/mo
Cash-on-cash: 15.3%
Cap rate: 9.9%
DSCR: 1.55×

Break-even

Price that breaks even: $387,606
Rent that breaks even: $3,060/mo

Long run

Year 30: property vs stocks: $2.17M vs $438K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$4,000
Vacancy (6%)	−$240
Collected	$3,760
Property tax Listing	−$299
Insurance Estimate	−$358
Water, sewer, trash Estimate	−$340
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$320
Capital reserve (8% of rent)	−$320
Net operating income	$2,063
Mortgage (principal + interest)	−$1,330
Cash flow	$733
Principal paid down (equity, not cash)	$169

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	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $224,910 of principal by year 30	$0
Plus rental profits, invested at 7%$581,015 of profit by year 30, before investment growth	$1,372,024
What you'd walk away with	$1,942,203
If you put the same money in stocks
Cash to close ($32,487) invested at 7%	$247,299
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$247,299
Building minus stocks	$1,694,904

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $224,910 of principal by year 30	$0
Plus rental profits, invested at 7%$387,821 of profit by year 30, before investment growth	$845,644
What you'd walk away with	$1,415,822
If you put the same money in stocks
Cash to close ($32,487) invested at 7%	$247,299
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$247,299
Building minus stocks	$1,168,523

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $215,910 of principal by year 30	$0
Plus rental profits, invested at 7%$602,841 of profit by year 30, before investment growth	$1,441,637
What you'd walk away with	$1,988,999
If you put the same money in stocks
Cash to close ($31,187) invested at 7%	$237,403
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$237,403
Building minus stocks	$1,751,596

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $215,910 of principal by year 30	$0
Plus rental profits, invested at 7%$409,646 of profit by year 30, before investment growth	$915,257
What you'd walk away with	$1,462,619
If you put the same money in stocks
Cash to close ($31,187) invested at 7%	$237,403
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$237,403
Building minus stocks	$1,225,216

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $199,920 of principal by year 30	$0
Plus rental profits, invested at 7%$647,615 of profit by year 30, before investment growth	$1,603,977
What you'd walk away with	$2,174,156
If you put the same money in stocks
Cash to close ($57,477) invested at 7%	$437,530
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$437,530
Building minus stocks	$1,736,626

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $199,920 of principal by year 30	$0
Plus rental profits, invested at 7%$454,421 of profit by year 30, before investment growth	$1,077,597
What you'd walk away with	$1,647,775
If you put the same money in stocks
Cash to close ($57,477) invested at 7%	$437,530
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$437,530
Building minus stocks	$1,210,245

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $191,920 of principal by year 30	$0
Plus rental profits, invested at 7%$666,776 of profit by year 30, before investment growth	$1,664,308
What you'd walk away with	$2,211,671
If you put the same money in stocks
Cash to close ($55,177) invested at 7%	$420,021
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$420,021
Building minus stocks	$1,791,650

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $191,920 of principal by year 30	$0
Plus rental profits, invested at 7%$473,582 of profit by year 30, before investment growth	$1,137,928
What you'd walk away with	$1,685,290
If you put the same money in stocks
Cash to close ($55,177) invested at 7%	$420,021
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$420,021
Building minus stocks	$1,265,269

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $187,425 of principal by year 30	$0
Plus rental profits, invested at 7%$677,542 of profit by year 30, before investment growth	$1,698,207
What you'd walk away with	$2,268,386
If you put the same money in stocks
Cash to close ($69,972) invested at 7%	$532,645
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$532,645
Building minus stocks	$1,735,741

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$606,573
Minus 6% selling cost	−$36,394
Minus loan still owedTenants' rent paid down all $187,425 of principal by year 30	$0
Plus rental profits, invested at 7%$484,348 of profit by year 30, before investment growth	$1,171,827
What you'd walk away with	$1,742,005
If you put the same money in stocks
Cash to close ($69,972) invested at 7%	$532,645
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$532,645
Building minus stocks	$1,209,360

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $179,925 of principal by year 30	$0
Plus rental profits, invested at 7%$695,505 of profit by year 30, before investment growth	$1,754,768
What you'd walk away with	$2,302,130
If you put the same money in stocks
Cash to close ($67,172) invested at 7%	$511,330
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$511,330
Building minus stocks	$1,790,800

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$582,300
Minus 6% selling cost	−$34,938
Minus loan still owedTenants' rent paid down all $179,925 of principal by year 30	$0
Plus rental profits, invested at 7%$502,311 of profit by year 30, before investment growth	$1,228,387
What you'd walk away with	$1,775,749
If you put the same money in stocks
Cash to close ($67,172) invested at 7%	$511,330
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$511,330
Building minus stocks	$1,264,419

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 $2.17M, stocks $438K. The property wins.

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.

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

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
710 S Washington Ave, Albert Lea	$650	1 / 1	380	0.5 mi	2026-09-10	Apartment
133 W William St, Albert Lea	$1,000	1 / 1	750	0.8 mi	—	Apartment
127 Elizabeth Ave, Albert Lea	$725	1 / 1	—	0.9 mi	2026-08-21	Apartment
520th 6th St, Ellendale	$995	1 / 1	717	16.6 mi	2025-11-05	Apartment
900 14th St NW, Austin	$845	1 / 1	522	18.8 mi	2025-01-03	Apartment
1105 3rd St NW, Austin	$925	1 / 1	522	19.5 mi	2025-07-30	Apartment
104 1st St SW, Austin	$700	1 / 1	585	19.6 mi	2026-08-14	Apartment
704 1st Dr NW, Austin	$1,629	1 / 1	849	19.6 mi	2026-01-26	Apartment
119 2nd Ave NE Apt 3, Austin	$1,000	1 / 1	650	19.7 mi	2026-09-28	Apartment
139 2nd Ave NE Unit Main, Blooming Prairie	$675	1 / 1	300	22.4 mi	2026-08-15	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 220 7TH ST E

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 91 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.	$3,584
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$4,300
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$340
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

2026-07-06New at $249,900

From the listing Listing

Listed as	four plex
Property tax, 2026	$3,584
County	Freeborn
Parcel number	340490110

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 Albert Lea on rental licensing before you buy.