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Minneapolis › Central

3605 S 3rd Ave

Minneapolis, MN · Central · Find the listing ↗

Cash flows
Asking price
$389,900
3 units · $130K per unit
Monthly cash flow
$131
at 20% down, 7%
Estimated rent
$4,350/mo
rough estimate
Break-even price
$414,471
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

  • 3 bed / 1 bath (est.)$1,650 $1,400–$1,900
  • 2 bed / 1 bath (est.)$1,350 $1,150–$1,550
  • 2 bed / 1 bath (est.)$1,350 $1,150–$1,550

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
$389,900
Monthly cash flow
$131
Cash to close
$89,677
Cap rate
6.8%
Cash-on-cash
1.7%
DSCR
1.06×
GRM
7.5
Price per unit
$129,967
Price that breaks even
$414,471
Rent that breaks even
$4,180/mo
Cash flow turns positive
year 1
Year 30: property vs stocks
$1.86M vs $683K

Monthly breakdown

Rent$4,350
Vacancy (6%)−$261
Collected$4,089
Property tax Public record−$522
Insurance Estimate−$306
Water, sewer, trash Estimate−$255
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$348
Capital reserve (9% of rent)−$392
Net operating income$2,206
Mortgage (principal + interest)−$2,075
Cash flow$131
Principal paid down (equity, not cash)$264

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 $1.86M, stocks $683K. The property wins.

How those totals add up

Year 30
If you buy this building
Sale priceValue grows 3% a year from the price$946,390
Minus 6% selling cost−$56,783
Minus loan still owedTenants' rent paid down all $311,920 of principal by year 30$0
Plus rental profits, invested at 7%$456,796 of profit by year 30, before investment growth$973,790
What you'd walk away with$1,863,397
If you put the same money in stocks
Cash to close ($89,677) invested at 7%$682,644
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$682,644
Building minus stocks$1,180,753

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

  • 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: 3605 3RD AVE S, grade/tier=Tier 2, status=Active

Opportunities

  • The seller bought for $166,500 in Jan 2014, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 0302824440050: last sale 2014-01-01, $166,500
  • Long time on market: room to negotiate. Based on: Listing data: 123 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)$6,265
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$3,677
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid$255
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 1910: +1 pt capital reserve8% / 9%

County record Public record

Recorded astriplex
Living units3
Year built1910
Market value (2026)$329,900
Property tax$6,265
Special assessmentsnone
Homesteadno
Last sale2014-01-01 · $166,500

Source: Hennepin County parcel records.

City rental license

CHOWN: 3 unit(s), Tier 2, status active, renews 2027-03-01.

Nearest highway

I 35W, about 168 m away.

Crime in Central

409 incidents in the last 12 months (50 per 1,000 residents), −10% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).

Status history