401 1st Ave SE

Pelican Rapids, MN · View the listing ↗

Cash flows

15 photos

Photos, via Realtor.com.

Asking price: $289,500
Monthly cash flow: $306
Estimated rent: $3,500/mo
Break-even price: $347,070

Adjust the numbers See the full breakdown

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: $289,500
Cash to close: $66,585
Price per unit: $96,500
GRM: 6.9

Each month

Cash flow: $306/mo
Cash-on-cash: 5.5%
Cap rate: 7.7%
DSCR: 1.20×

Break-even

Price that breaks even: $347,070
Rent that breaks even: $3,107/mo

Long run

Year 30: property vs stocks: $1.71M vs $507K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$3,500
Vacancy (6%)	−$210
Collected	$3,290
Property tax Listing	−$272
Insurance Estimate	−$296
Water, sewer, trash Estimate	−$255
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$280
Capital reserve (8% of rent)	−$280
Net operating income	$1,847
Mortgage (principal + interest)	−$1,541
Cash flow	$306
Principal paid down (equity, not cash)	$196

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	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $260,550 of principal by year 30	$0
Plus rental profits, invested at 7%$380,463 of profit by year 30, before investment growth	$780,991
What you'd walk away with	$1,441,522
If you put the same money in stocks
Cash to close ($37,635) invested at 7%	$286,487
Monthly shortfalls ($588 total by yr 30) investedThe money you'd have put into the building while it lost money	$4,187
What you'd walk away with	$290,674
Building minus stocks	$1,150,848

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $260,550 of principal by year 30	$0
Plus rental profits, invested at 7%$224,395 of profit by year 30, before investment growth	$404,706
What you'd walk away with	$1,065,237
If you put the same money in stocks
Cash to close ($37,635) invested at 7%	$286,487
Monthly shortfalls ($13,565 total by yr 30) investedThe money you'd have put into the building while it lost money	$88,484
What you'd walk away with	$374,972
Building minus stocks	$690,265

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $251,550 of principal by year 30	$0
Plus rental profits, invested at 7%$401,700 of profit by year 30, before investment growth	$846,417
What you'd walk away with	$1,484,132
If you put the same money in stocks
Cash to close ($36,335) invested at 7%	$276,591
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	$276,591
Building minus stocks	$1,207,541

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $251,550 of principal by year 30	$0
Plus rental profits, invested at 7%$242,992 of profit by year 30, before investment growth	$453,593
What you'd walk away with	$1,091,307
If you put the same money in stocks
Cash to close ($36,335) invested at 7%	$276,591
Monthly shortfalls ($10,336 total by yr 30) investedThe money you'd have put into the building while it lost money	$67,758
What you'd walk away with	$344,350
Building minus stocks	$746,957

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $231,600 of principal by year 30	$0
Plus rental profits, invested at 7%$457,029 of profit by year 30, before investment growth	$1,045,514
What you'd walk away with	$1,706,045
If you put the same money in stocks
Cash to close ($66,585) invested at 7%	$506,862
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	$506,862
Building minus stocks	$1,199,183

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $231,600 of principal by year 30	$0
Plus rental profits, invested at 7%$287,984 of profit by year 30, before investment growth	$584,931
What you'd walk away with	$1,245,462
If you put the same money in stocks
Cash to close ($66,585) invested at 7%	$506,862
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	$506,862
Building minus stocks	$738,600

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $223,600 of principal by year 30	$0
Plus rental profits, invested at 7%$476,190 of profit by year 30, before investment growth	$1,105,845
What you'd walk away with	$1,743,559
If you put the same money in stocks
Cash to close ($64,285) invested at 7%	$489,354
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	$489,354
Building minus stocks	$1,254,205

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $223,600 of principal by year 30	$0
Plus rental profits, invested at 7%$307,145 of profit by year 30, before investment growth	$645,262
What you'd walk away with	$1,282,977
If you put the same money in stocks
Cash to close ($64,285) invested at 7%	$489,354
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	$489,354
Building minus stocks	$793,623

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $217,125 of principal by year 30	$0
Plus rental profits, invested at 7%$491,698 of profit by year 30, before investment growth	$1,154,675
What you'd walk away with	$1,815,206
If you put the same money in stocks
Cash to close ($81,060) invested at 7%	$617,049
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	$617,049
Building minus stocks	$1,198,157

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$702,692
Minus 6% selling cost	−$42,162
Minus loan still owedTenants' rent paid down all $217,125 of principal by year 30	$0
Plus rental profits, invested at 7%$322,653 of profit by year 30, before investment growth	$694,092
What you'd walk away with	$1,354,623
If you put the same money in stocks
Cash to close ($81,060) invested at 7%	$617,049
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	$617,049
Building minus stocks	$737,574

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $209,625 of principal by year 30	$0
Plus rental profits, invested at 7%$509,661 of profit by year 30, before investment growth	$1,211,236
What you'd walk away with	$1,848,950
If you put the same money in stocks
Cash to close ($78,260) invested at 7%	$595,735
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	$595,735
Building minus stocks	$1,253,215

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$678,420
Minus 6% selling cost	−$40,705
Minus loan still owedTenants' rent paid down all $209,625 of principal by year 30	$0
Plus rental profits, invested at 7%$340,616 of profit by year 30, before investment growth	$750,653
What you'd walk away with	$1,388,368
If you put the same money in stocks
Cash to close ($78,260) invested at 7%	$595,735
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	$595,735
Building minus stocks	$792,633

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 $1.71M, stocks $507K. 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.

2 bed estimate $1,175/mo · range $950–$1,375 · 465 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
301 7th Ave NW, Pelican Rapids	$1,250	2 / 1	950	0.8 mi	2025-01-07	Apartment
125 6th St SW, Barnesville	$880	2 / 1	—	17.6 mi	2026-09-30	Apartment
623 W Fir Ave, Fergus Falls	$1,115	2 / 1	1,080	18.9 mi	2025-01-03	Apartment
1234 N Broadway, Fergus Falls	$980	2 / 1	850	18.9 mi	—	Apartment
816 W Laurel St, Fergus Falls	$900	2 / 1	895	19.4 mi	2025-04-02	Apartment
1515 College Way, Fergus Falls	$1,000	2 / 1	772	19.5 mi	2025-10-10	Apartment
1327 Madison Ave, Detroit Lakes	$1,200	2 / 1	—	20.1 mi	2026-06-23	Apartment
1210 Jackson Ave, Detroit Lakes	$845	2 / 1	—	20.3 mi	2026-06-24	Apartment
502 Riverwood Dr, Detroit Lakes	$1,115	2 / 1	1,041	21.6 mi	2026-10-01	Apartment
219 6th St Unit 9, Hawley	$1,400	2 / 1	1,592	24.2 mi	2026-08-17	Apartment

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

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
520 3rd St NW, Pelican Rapids	$1,395	3 / 1	950	0.8 mi	2025-01-07	Apartment
1560 Hartford St, Hawley	$1,325	3 / 2	1,311	24.7 mi	2026-09-17	Apartment
418 S 8th St, Breckenridge	$1,295	3 / 1	905	32.2 mi	2025-01-07	Apartment
605 Buffalo Ave, Breckenridge	$800	3 / 1	1,196	32.4 mi	2026-09-15	Apartment
2745 40th St S, Moorhead	$1,925	3 / 2	1,345	36.1 mi	2025-07-01	Apartment
1730 40th Ave S, Moorhead	$1,295	3 / 2	1,375	36.7 mi	2025-05-01	Apartment
3420-3540 18th St S, Moorhead	$1,555	3 / 2	1,270	36.9 mi	2025-03-06	Apartment
4402 Blue Stem Way, Moorhead	$2,130	3 / 2.5	2,166	37.2 mi	2026-06-02	Apartment
1501 Belsly Blvd, Moorhead	$1,550	3 / 2	1,242	37.2 mi	2026-03-12	Apartment
801 44th Ave S, Moorhead	$1,770	3 / 2	1,461	37.2 mi	2025-03-06	Apartment

1 bed estimate $850/mo · range $775–$900 · 12 rentals in Otter Tail County

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
401 1st Ave SE Unit Efficiencyunit, Pelican Rapids	$850	1 / 1	550	0.0 mi	2026-05-31	Duplex triplex
301 7th Ave NW, Pelican Rapids	$1,000	1 / 1	675	0.8 mi	2025-01-07	Apartment
623 W Fir Ave, Fergus Falls	$915	1 / 1	765	18.9 mi	2025-01-03	Apartment
1201 N Broadway Apt 1, Fergus Falls	$850	1 / 1	1	18.9 mi	2026-09-22	Apartment
1145 Friberg Ave, Fergus Falls	$771	1 / 1	550	19.0 mi	2026-05-08	Apartment
511 Northern Ave Apt 4, Fergus Falls	$710	1 / 1	650	19.3 mi	2026-09-09	Apartment
1515 College Way, Fergus Falls	$850	1 / 1	558	19.5 mi	2025-10-10	Apartment
124 E Summit Ave, Fergus Falls	$955	1 / 1	550	19.6 mi	2026-05-14	Apartment
221 E Cavour Ave, Fergus Falls	$820	1 / 1	540	19.6 mi	2026-05-28	Apartment
105 Edgewood St, New York Mills	$730	1 / —	550	33.5 mi	2023-12-08	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 401 1ST AVE SE

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 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.	$3,263
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$3,550
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. base rate	8% / 8%

Status history

2026-08-12New at $289,500

From the listing Listing

Listed as	triplex
Property tax, 2026	$3,263
County	Otter Tail
Parcel number	76000990506001

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 Pelican Rapids on rental licensing before you buy.