Fernberg Rd

Overpriced

37 photos

Photos courtesy of Bear Island Realty, via Realtor.com.

Asking price: $390,000
Monthly cash flow: −$652
Estimated rent: $2,350/mo
Break-even price: $267,500

Adjust the numbers See the full breakdown

From the listing

Two Cabin North woods Retreat on Shagawa River & Fall Lake Rare opportunity to own 3.8 beautiful acres with an impressive 714 feet of combined Shagawa River and Fall Lake shoreline. Westerly facing and surrounded by the natural beauty of the North woods, this unique property offers two classic cabins, abundant shoreline, and tremendous potential for a private family retreat, or seasonal getaway. The property features two separate 2-bedroom, 1-bath seasonal cabins, each with a comfortable combined kitchen and living area and a deck at the entrance. Both cabins are being offered furnished, existing dishes, cookware and miscellaneous items, making it easy to start enjoying the property right away. The cabins share a well, while each has its own septic system. Cabin #1 will require a new septic system, providing an opportunity for the next owner to make improvements suited to their plans. A gravel boat landing provides direct access to the river. Although currently grown in with weeds, the landing has historically provided easy boat launching. Additional improvements include a storage/pump house containing the water heater and providing valuable storage space, along with a screened fish cleaning house equipped with a cleaning table, sink, and running water; perfectly suited to the North woods lifestyle. With two cabins, extensive shoreline, western exposure, boat access, and nearly four acres of beautiful North woods property, this is a rare opportunity to create your own lake-and-river retreat with room for family, friends, and recreation. The two cabins were used as rental properties until 2022. Direct access to Fall Lake, a large, classic North woods lake with direct BWCAW wilderness access.

Listing courtesy of Bear Island Realty (Trish Bulinski). Description from Realtor.com, MLS #6128282. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

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: $390,000
Cash to close: $89,700
Price per unit: $195,000
GRM: 13.8

Each month

Cash flow: −$652/mo
Cash-on-cash: −8.7%
Cap rate: 4.4%
DSCR: 0.69×

Break-even

Price that breaks even: $267,500
Rent that breaks even: $3,186/mo

Long run

Year 30: property vs stocks: $1.04M vs $1.01M
Cash flow turns positive: year 15

Monthly

Monthly breakdown

Rent	$2,350
Vacancy (6%)	−$141
Collected	$2,209
Property tax Listing	$0
Insurance Estimate	−$179
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$188
Capital reserve (8% of rent)	−$188
Net operating income	$1,424
Mortgage (principal + interest)	−$2,076
Cash flow	−$652
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

How those totals add up

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $351,000 of principal by year 30	$0
Plus rental profits, invested at 7%$61,973 of profit by year 30, before investment growth	$79,238
What you'd walk away with	$969,072
If you put the same money in stocks
Cash to close ($50,700) invested at 7%	$385,941
Monthly shortfalls ($120,230 total by yr 30) investedThe money you'd have put into the building while it lost money	$617,193
What you'd walk away with	$1,003,135
Building minus stocks	−$34,063

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $351,000 of principal by year 30	$0
Plus rental profits, invested at 7%$16,270 of profit by year 30, before investment growth	$18,203
What you'd walk away with	$908,038
If you put the same money in stocks
Cash to close ($50,700) invested at 7%	$385,941
Monthly shortfalls ($188,028 total by yr 30) investedThe money you'd have put into the building while it lost money	$865,408
What you'd walk away with	$1,251,349
Building minus stocks	−$343,311

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $342,000 of principal by year 30	$0
Plus rental profits, invested at 7%$70,834 of profit by year 30, before investment growth	$92,628
What you'd walk away with	$959,646
If you put the same money in stocks
Cash to close ($49,400) invested at 7%	$376,045
Monthly shortfalls ($107,265 total by yr 30) investedThe money you'd have put into the building while it lost money	$560,971
What you'd walk away with	$937,016
Building minus stocks	$22,630

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $342,000 of principal by year 30	$0
Plus rental profits, invested at 7%$21,145 of profit by year 30, before investment growth	$24,190
What you'd walk away with	$891,208
If you put the same money in stocks
Cash to close ($49,400) invested at 7%	$376,045
Monthly shortfalls ($171,077 total by yr 30) investedThe money you'd have put into the building while it lost money	$801,781
What you'd walk away with	$1,177,827
Building minus stocks	−$286,619

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $312,000 of principal by year 30	$0
Plus rental profits, invested at 7%$105,388 of profit by year 30, before investment growth	$149,437
What you'd walk away with	$1,039,272
If you put the same money in stocks
Cash to close ($89,700) invested at 7%	$682,819
Monthly shortfalls ($59,706 total by yr 30) investedThe money you'd have put into the building while it lost money	$325,402
What you'd walk away with	$1,008,221
Building minus stocks	$31,051

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $312,000 of principal by year 30	$0
Plus rental profits, invested at 7%$42,341 of profit by year 30, before investment growth	$52,380
What you'd walk away with	$942,215
If you put the same money in stocks
Cash to close ($89,700) invested at 7%	$682,819
Monthly shortfalls ($110,161 total by yr 30) investedThe money you'd have put into the building while it lost money	$537,593
What you'd walk away with	$1,220,412
Building minus stocks	−$278,197

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $304,000 of principal by year 30	$0
Plus rental profits, invested at 7%$115,958 of profit by year 30, before investment growth	$168,286
What you'd walk away with	$1,035,304
If you put the same money in stocks
Cash to close ($87,400) invested at 7%	$665,311
Monthly shortfalls ($51,115 total by yr 30) investedThe money you'd have put into the building while it lost money	$283,919
What you'd walk away with	$949,230
Building minus stocks	$86,074

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $304,000 of principal by year 30	$0
Plus rental profits, invested at 7%$49,367 of profit by year 30, before investment growth	$62,461
What you'd walk away with	$929,479
If you put the same money in stocks
Cash to close ($87,400) invested at 7%	$665,311
Monthly shortfalls ($98,026 total by yr 30) investedThe money you'd have put into the building while it lost money	$487,343
What you'd walk away with	$1,152,654
Building minus stocks	−$223,175

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $292,500 of principal by year 30	$0
Plus rental profits, invested at 7%$132,154 of profit by year 30, before investment growth	$198,458
What you'd walk away with	$1,088,293
If you put the same money in stocks
Cash to close ($109,200) invested at 7%	$831,258
Monthly shortfalls ($39,768 total by yr 30) investedThe money you'd have put into the building while it lost money	$227,365
What you'd walk away with	$1,058,623
Building minus stocks	$29,670

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$946,632
Minus 6% selling cost	−$56,798
Minus loan still owedTenants' rent paid down all $292,500 of principal by year 30	$0
Plus rental profits, invested at 7%$60,624 of profit by year 30, before investment growth	$79,426
What you'd walk away with	$969,261
If you put the same money in stocks
Cash to close ($109,200) invested at 7%	$831,258
Monthly shortfalls ($81,740 total by yr 30) investedThe money you'd have put into the building while it lost money	$417,582
What you'd walk away with	$1,248,840
Building minus stocks	−$279,579

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $285,000 of principal by year 30	$0
Plus rental profits, invested at 7%$143,456 of profit by year 30, before investment growth	$220,588
What you'd walk away with	$1,087,606
If you put the same money in stocks
Cash to close ($106,400) invested at 7%	$809,944
Monthly shortfalls ($33,107 total by yr 30) investedThe money you'd have put into the building while it lost money	$192,934
What you'd walk away with	$1,002,878
Building minus stocks	$84,728

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$922,360
Minus 6% selling cost	−$55,342
Minus loan still owedTenants' rent paid down all $285,000 of principal by year 30	$0
Plus rental profits, invested at 7%$68,608 of profit by year 30, before investment growth	$91,967
What you'd walk away with	$958,986
If you put the same money in stocks
Cash to close ($106,400) invested at 7%	$809,944
Monthly shortfalls ($71,760 total by yr 30) investedThe money you'd have put into the building while it lost money	$373,562
What you'd walk away with	$1,183,506
Building minus stocks	−$224,520

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 $1.04M, stocks $1.01M. 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
410 W 3rd Ave N, Aurora	$970	2 / 1	840	34.6 mi	—	Apartment
201 N 5th Ave, Virginia	$958	2 / 1	—	44.5 mi	2026-02-01	Apartment
206 S 4th Ave E Unit 104, Virginia	$995	2 / 1	—	44.5 mi	—	Apartment
707 S 5th Ave Apt 3, Virginia	$995	2 / 1	—	44.8 mi	2026-04-08	Apartment
110 Anderson Dr # 44, Virginia	$1,065	2 / 1	850	45.2 mi	—	Apartment
8515 Parkvilla Dr, Mountain Iron	$1,295	2 / 1	928	46.3 mi	—	Apartment
300 15th Ave W, Eveleth	$1,047	2 / 1	900	48.7 mi	2025-01-03	Apartment
11 Alta Miikana Rd Unit 12D, Lutsen	$1,639	2 / 1	864	55.0 mi	2026-10-02	Apartment
100 Southview Dr, Hibbing	$990	2 / 1	792	62.7 mi	—	Apartment
600 E 40th St, Hibbing	$1,170	2 / 1	860	64.3 mi	2025-04-16	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 FERNBERG RD
mediumAsking is $122,500 above the price where cash flow breaks even ($267,500) at the default scenario. Based on: Derived: price $390,000 vs. break-even $267,500

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.	$1
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,150
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

2026-10-02Price increase at $390,000 (was $79,900) · from listing history
2026-10-02New at $390,000

From the listing Listing

Listed as	multi-family
Property tax, 2026	$1
County	Lake County
Parcel number	28-6311-19375 Portion of

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 Ely on rental licensing before you buy.