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Minneapolis › Lowry Hill East

2814 Colfax Ave S

Minneapolis, MN · Lowry Hill East · Listing office ↗ · Find the listing ↗

Far off
Asking price
$489,000
2 units · $244K per unit
Monthly cash flow
−$1,146
at 20% down, 7%
Estimated rent
$3,600/mo
rough estimate
Break-even price
$273,660
where cash flow hits $0

Adjust these numbers in the calculator See the full breakdown

The numbers

Down payment %
Offer
Management
Interest rate %

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

  • 4 bed / 1 bath (est.)$1,950 $1,650–$2,250
  • 3 bed / 1 bath (est.)$1,650 $1,400–$1,900

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
$489,000
Monthly cash flow
−$1,146
Cash to close
$112,470
Cap rate
3.6%
Cash-on-cash
−12.2%
DSCR
0.56×
GRM
11.3
Price per unit
$244,500
Price that breaks even
$273,660
Rent that breaks even
$5,088/mo
Cash flow turns positive
year 25
Year 30: property vs stocks
$1.13M vs $1.68M

Monthly breakdown

Rent$3,600
Vacancy (6%)−$216
Collected$3,384
Property tax Estimate−$856
Insurance Estimate−$230
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$288
Capital reserve (9% of rent)−$324
Net operating income$1,457
Mortgage (principal + interest)−$2,603
Cash flow−$1,146
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: this property vs. the same money in stocks

This propertyStocks at 7%

Year 30 (loan paid off): property $1.13M, stocks $1.68M. Stocks win.

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 $391,200 of principal by year 30$0
Plus rental profits, invested at 7%$13,903 of profit by year 30, before investment growth$15,449
What you'd walk away with$1,131,164
If you put the same money in stocks
Cash to close ($112,470) invested at 7%$856,150
Monthly shortfalls ($183,208 total by yr 30) investedThe money you'd have put into the building while it lost money$821,150
What you'd walk away with$1,677,300
Building minus stocks−$546,136

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

  • mediumNo rental license on file in the city's data. Ask whether the building is licensed as a rental and when it was last inspected. Public record: Minneapolis Active Rental Licenses: no record for 2814 COLFAX AVE S
  • medium$9,475 in special assessments on the current tax bill (often street, sewer or code-enforcement charges). Ask what they're for, whether they continue, and whether the seller pays them off at closing. Public record: Hennepin County parcel 3302924440052: special assessments (current) = $9,475.24
  • mediumAsking is $215,340 above the price where cash flow breaks even ($273,660) at the default scenario. Based on: Derived: price $489,000 vs. break-even $273,660

Opportunities

None found.

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 Estimateestimate. No tax record found; 2.1% of price.$10,269
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,757
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. built 1907: +1 pt capital reserve8% / 9%

County record Public record

Recorded asduplex
Living units2
Year built1907
Market value (2026)$445,800
Property tax$6,785
Special assessments$9,475
Homesteadno
Last sale2023-02-01 · $465,000

Source: Hennepin County parcel records.

City rental license

No record in Minneapolis Active Rental Licenses.

Nearest highway

I 35W, about 1372 m away.

Crime in Lowry Hill East

647 incidents in the last 12 months (74 per 1,000 residents), −3% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).

Status history