505 8th Ave SE

Minneapolis, MN · Marcy Holmes · Listing office ↗ · Find the listing ↗

Far off

Asking price: $475,000
Monthly cash flow: −$1,541
Estimated rent: $3,150/mo
Break-even price: $185,393

Adjust these numbers in the calculator See the full breakdown

The numbers

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

1 bed / 1 bath (est.)$1,050 $900–$1,200
1 bed / 1 bath (est.)$1,050 $900–$1,200
1 bed / 1 bath (est.)$1,050 $900–$1,200

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: $475,000
Monthly cash flow: −$1,541
Cash to close: $109,250
Cap rate: 2.5%
Cash-on-cash: −16.9%
DSCR: 0.39×
GRM: 12.6
Price per unit: $158,333
Price that breaks even: $185,393
Rent that breaks even: $5,152/mo
Cash flow turns positive: not within 30 years
Year 30: property vs stocks: $1.08M vs $2.29M

Monthly breakdown

Rent	$3,150
Vacancy (6%)	−$189
Collected	$2,961
Property tax Estimate	−$831
Insurance Estimate	−$293
Water, sewer, trash Estimate	−$255
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$252
Capital reserve (9% of rent)	−$284
Net operating income	$987
Mortgage (principal + interest)	−$2,528
Cash flow	−$1,541
Principal paid down (equity, not cash)	$322

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 $1.08M, stocks $2.29M. Stocks win.

How those totals add up

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $427,500 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	$1,083,773
If you put the same money in stocks
Cash to close ($61,750) invested at 7%	$470,057
Monthly shortfalls ($543,266 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,904,239
What you'd walk away with	$2,374,295
Building minus stocks	−$1,290,522

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $427,500 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	$1,083,773
If you put the same money in stocks
Cash to close ($61,750) invested at 7%	$470,057
Monthly shortfalls ($695,407 total by yr 30) investedThe money you'd have put into the building while it lost money	$2,318,763
What you'd walk away with	$2,788,820
Building minus stocks	−$1,705,047

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $418,500 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	$1,060,956
If you put the same money in stocks
Cash to close ($60,450) invested at 7%	$460,161
Monthly shortfalls ($521,440 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,834,626
What you'd walk away with	$2,294,786
Building minus stocks	−$1,233,830

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $418,500 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	$1,060,956
If you put the same money in stocks
Cash to close ($60,450) invested at 7%	$460,161
Monthly shortfalls ($673,581 total by yr 30) investedThe money you'd have put into the building while it lost money	$2,249,150
What you'd walk away with	$2,709,311
Building minus stocks	−$1,648,355

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $380,000 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	$1,083,773
If you put the same money in stocks
Cash to close ($109,250) invested at 7%	$831,639
Monthly shortfalls ($416,674 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,463,351
What you'd walk away with	$2,294,990
Building minus stocks	−$1,211,217

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $380,000 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	$1,083,773
If you put the same money in stocks
Cash to close ($109,250) invested at 7%	$831,639
Monthly shortfalls ($568,815 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,877,876
What you'd walk away with	$2,709,515
Building minus stocks	−$1,625,742

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $372,000 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	$1,060,956
If you put the same money in stocks
Cash to close ($106,950) invested at 7%	$814,131
Monthly shortfalls ($397,514 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,403,020
What you'd walk away with	$2,217,151
Building minus stocks	−$1,156,195

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $372,000 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	$1,060,956
If you put the same money in stocks
Cash to close ($106,950) invested at 7%	$814,131
Monthly shortfalls ($549,654 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,817,545
What you'd walk away with	$2,631,675
Building minus stocks	−$1,570,719

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $356,250 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	$1,083,773
If you put the same money in stocks
Cash to close ($133,000) invested at 7%	$1,012,430
Monthly shortfalls ($359,791 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,284,243
What you'd walk away with	$2,296,673
Building minus stocks	−$1,212,900

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,152,950
Minus 6% selling cost	−$69,177
Minus loan still owedTenants' rent paid down all $356,250 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	$1,083,773
If you put the same money in stocks
Cash to close ($133,000) invested at 7%	$1,012,430
Monthly shortfalls ($511,932 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,698,768
What you'd walk away with	$2,711,197
Building minus stocks	−$1,627,424

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $348,750 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	$1,060,956
If you put the same money in stocks
Cash to close ($130,200) invested at 7%	$991,116
Monthly shortfalls ($341,828 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,227,682
What you'd walk away with	$2,218,798
Building minus stocks	−$1,157,842

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$1,128,677
Minus 6% selling cost	−$67,721
Minus loan still owedTenants' rent paid down all $348,750 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	$1,060,956
If you put the same money in stocks
Cash to close ($130,200) invested at 7%	$991,116
Monthly shortfalls ($493,968 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,642,207
What you'd walk away with	$2,633,323
Building minus stocks	−$1,572,367

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

mediumAbout 142 m from I 35W: traffic noise usually costs $50–100/month in rent. Based on: OpenStreetMap: nearest motorway (I 35W) at 142 m
mediumAsking is $289,607 above the price where cash flow breaks even ($185,393) at the default scenario. Based on: Derived: price $475,000 vs. break-even $185,393

Opportunities

The seller bought for $82,000 in May 2000, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 2402924230038: last sale 2000-05-01, $82,000

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.	$9,975
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$3,510
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 1900: +1 pt capital reserve	8% / 9%

County record Public record

Recorded as	triplex
Living units	3
Year built	1900
Market value (2026)	$467,900
Property tax	$7,182
Special assessments	none
Homestead	no
Last sale	2000-05-01 · $82,000

Source: Hennepin County parcel records.

City rental license

CHOWN: 3 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

I 35W, about 142 m away.

Crime in Marcy Holmes

873 incidents in the last 12 months (58 per 1,000 residents), +36% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).

Status history

2026-08-03New at $475,000