420 W 5th Ave

Grand Marais, MN · View the listing ↗

Overpriced

29 photos

Photos, via Realtor.com.

Asking price: $257,000
Monthly cash flow: −$527
Estimated rent: $1,950/mo
Break-even price: $157,940

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: $257,000
Cash to close: $59,110
Price per unit: $128,500
GRM: 11.0

Each month

Cash flow: −$527/mo
Cash-on-cash: −10.7%
Cap rate: 3.9%
DSCR: 0.61×

Break-even

Price that breaks even: $157,940
Rent that breaks even: $2,626/mo

Long run

Year 30: property vs stocks: $615K vs $784K
Cash flow turns positive: year 21

Monthly

Monthly breakdown

Rent	$1,950
Vacancy (6%)	−$117
Collected	$1,833
Property tax Listing	−$275
Insurance Estimate	−$175
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$156
Capital reserve (8% of rent)	−$156
Net operating income	$841
Mortgage (principal + interest)	−$1,368
Cash flow	−$527
Principal paid down (equity, not cash)	$174

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	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $231,300 of principal by year 30	$0
Plus rental profits, invested at 7%$7,094 of profit by year 30, before investment growth	$7,781
What you'd walk away with	$594,159
If you put the same money in stocks
Cash to close ($33,410) invested at 7%	$254,325
Monthly shortfalls ($121,144 total by yr 30) investedThe money you'd have put into the building while it lost money	$551,901
What you'd walk away with	$806,226
Building minus stocks	−$212,067

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $231,300 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$586,378
If you put the same money in stocks
Cash to close ($33,410) invested at 7%	$254,325
Monthly shortfalls ($208,232 total by yr 30) investedThe money you'd have put into the building while it lost money	$800,730
What you'd walk away with	$1,055,056
Building minus stocks	−$468,678

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $222,300 of principal by year 30	$0
Plus rental profits, invested at 7%$11,662 of profit by year 30, before investment growth	$13,306
What you'd walk away with	$576,868
If you put the same money in stocks
Cash to close ($32,110) invested at 7%	$244,430
Monthly shortfalls ($103,886 total by yr 30) investedThe money you'd have put into the building while it lost money	$487,813
What you'd walk away with	$732,243
Building minus stocks	−$155,375

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $222,300 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$563,562
If you put the same money in stocks
Cash to close ($32,110) invested at 7%	$244,430
Monthly shortfalls ($186,406 total by yr 30) investedThe money you'd have put into the building while it lost money	$731,117
What you'd walk away with	$975,547
Building minus stocks	−$411,985

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $205,600 of principal by year 30	$0
Plus rental profits, invested at 7%$23,181 of profit by year 30, before investment growth	$28,508
What you'd walk away with	$614,886
If you put the same money in stocks
Cash to close ($59,110) invested at 7%	$449,960
Monthly shortfalls ($68,738 total by yr 30) investedThe money you'd have put into the building while it lost money	$334,084
What you'd walk away with	$784,045
Building minus stocks	−$169,159

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $205,600 of principal by year 30	$0
Plus rental profits, invested at 7%$0 of profit by year 30, before investment growth	$0
What you'd walk away with	$586,378
If you put the same money in stocks
Cash to close ($59,110) invested at 7%	$449,960
Monthly shortfalls ($139,739 total by yr 30) investedThe money you'd have put into the building while it lost money	$562,187
What you'd walk away with	$1,012,147
Building minus stocks	−$425,769

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $197,600 of principal by year 30	$0
Plus rental profits, invested at 7%$30,233 of profit by year 30, before investment growth	$38,658
What you'd walk away with	$602,220
If you put the same money in stocks
Cash to close ($56,810) invested at 7%	$432,452
Monthly shortfalls ($56,629 total by yr 30) investedThe money you'd have put into the building while it lost money	$283,903
What you'd walk away with	$716,356
Building minus stocks	−$114,136

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $197,600 of principal by year 30	$0
Plus rental profits, invested at 7%$492 of profit by year 30, before investment growth	$496
What you'd walk away with	$564,058
If you put the same money in stocks
Cash to close ($56,810) invested at 7%	$432,452
Monthly shortfalls ($121,071 total by yr 30) investedThe money you'd have put into the building while it lost money	$502,352
What you'd walk away with	$934,804
Building minus stocks	−$370,746

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $192,750 of principal by year 30	$0
Plus rental profits, invested at 7%$35,006 of profit by year 30, before investment growth	$45,870
What you'd walk away with	$632,248
If you put the same money in stocks
Cash to close ($71,960) invested at 7%	$547,778
Monthly shortfalls ($49,786 total by yr 30) investedThe money you'd have put into the building while it lost money	$254,539
What you'd walk away with	$802,317
Building minus stocks	−$170,069

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$623,806
Minus 6% selling cost	−$37,428
Minus loan still owedTenants' rent paid down all $192,750 of principal by year 30	$0
Plus rental profits, invested at 7%$1,355 of profit by year 30, before investment growth	$1,399
What you'd walk away with	$587,777
If you put the same money in stocks
Cash to close ($71,960) invested at 7%	$547,778
Monthly shortfalls ($110,317 total by yr 30) investedThe money you'd have put into the building while it lost money	$466,679
What you'd walk away with	$1,014,457
Building minus stocks	−$426,680

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $185,250 of principal by year 30	$0
Plus rental profits, invested at 7%$43,132 of profit by year 30, before investment growth	$58,755
What you'd walk away with	$622,316
If you put the same money in stocks
Cash to close ($69,160) invested at 7%	$526,464
Monthly shortfalls ($39,949 total by yr 30) investedThe money you'd have put into the building while it lost money	$210,864
What you'd walk away with	$737,327
Building minus stocks	−$115,011

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$599,534
Minus 6% selling cost	−$35,972
Minus loan still owedTenants' rent paid down all $185,250 of principal by year 30	$0
Plus rental profits, invested at 7%$3,484 of profit by year 30, before investment growth	$3,732
What you'd walk away with	$567,294
If you put the same money in stocks
Cash to close ($69,160) invested at 7%	$526,464
Monthly shortfalls ($94,483 total by yr 30) investedThe money you'd have put into the building while it lost money	$412,451
What you'd walk away with	$938,915
Building minus stocks	−$371,621

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 $615K, stocks $784K. 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.

1 bed estimate $975/mo · range $825–$1,250 · 357 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
861 5th Ave W, Grand Marais	$1,950	1 / 1	598	0.4 mi	2025-05-14	Apartment
1501 W Highway 61, Grand Marais	$1,850	1 / 1	—	0.7 mi	2026-09-16	Apartment
900 Dorchester Dr, Hoyt Lakes	$725	1 / 1	665	85.3 mi	2024-04-15	Apartment
3780 London Rd, Duluth	$1,615	1 / 1	750	102.7 mi	2025-04-10	Apartment
25 W Redwing St Apt 18, Duluth	$1,125	1 / 1	513	102.8 mi	—	Apartment
406 S 4th Ave W Apt 204, Virginia	$940	1 / 1	368	103.5 mi	2026-09-17	Apartment
201 N 5th Ave, Virginia	$882	1 / 1	—	103.5 mi	2026-02-01	Apartment
604 7th St S Unit 2, Virginia	$850	1 / 1	—	103.8 mi	—	Apartment
606 7th St S Unit 2, Virginia	$880	1 / 1	—	103.8 mi	—	Apartment
100 N Van Buren Ave, Eveleth	$1,050	1 / 1	675	103.8 mi	—	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 420 5TH AVE W
mediumAsking is $99,060 above the price where cash flow breaks even ($157,940) at the default scenario. Based on: Derived: price $257,000 vs. break-even $157,940

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 207 days on market
Motivated-seller language: room to negotiate. Listing says: "Motivated Seller ! Price Reduced! Are you looking for a"

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 2025. 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.	$3,302
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,102
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 rate	8% / 8%

Status history

2026-03-12New at $257,000

From the listing Listing

Listed as	duplex
Property tax, 2025	$3,302
County	Cook County
Parcel number	80-301-0010

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 Grand Marais on rental licensing before you buy.