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Minneapolis › Marcy Holmes

1316 7th St SE

Minneapolis, MN · Marcy Holmes · Find the listing ↗

Far off
Asking price
$1,600,000
3 units · $533K per unit
Monthly cash flow
−$6,744
at 20% down, 7%
Estimated rent
$4,650/mo
rough estimate
Break-even price
$332,855
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
  • 3 bed / 1 bath (est.)$1,650 $1,400–$1,900
  • 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
$1,600,000
Monthly cash flow
−$6,744
Cash to close
$368,000
Cap rate
1.3%
Cash-on-cash
−22.0%
DSCR
0.21×
GRM
28.7
Price per unit
$533,333
Price that breaks even
$332,855
Rent that breaks even
$13,524/mo
Cash flow turns positive
not within 30 years
Year 30: property vs stocks
$3.65M vs $9.86M

Monthly breakdown

Rent$4,650
Vacancy (6%)−$279
Collected$4,371
Property tax Public record−$1,103
Insurance Estimate−$344
Water, sewer, trash Estimate−$255
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (9% of rent)−$418
Capital reserve (9% of rent)−$418
Net operating income$1,772
Mortgage (principal + interest)−$8,516
Cash flow−$6,744
Principal paid down (equity, not cash)$1,084

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 $3.65M, stocks $9.86M. Stocks win.

How those totals add up

Year 30
If you buy this building
Sale priceValue grows 3% a year from the price$3,883,620
Minus 6% selling cost−$233,017
Minus loan still owedTenants' rent paid down all $1,280,000 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$3,650,603
If you put the same money in stocks
Cash to close ($368,000) invested at 7%$2,801,310
Monthly shortfalls ($2,139,896 total by yr 30) investedThe money you'd have put into the building while it lost money$7,059,578
What you'd walk away with$9,860,887
Building minus stocks−$6,210,284

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

  • mediumNo rental license on file in the city's data. Ask whether the building is licensed as a rental and when it was last inspected. Public record: Minneapolis Active Rental Licenses: no record for 1316 7TH ST S E
  • medium$5,144 in special assessments on the current tax bill (often street, sewer or code-enforcement charges). Ask what they're for, whether they continue, and whether the seller pays them off at closing. Public record: Hennepin County parcel 2402924420092: special assessments (current) = $5,143.88
  • mediumAsking is $1,267,145 above the price where cash flow breaks even ($332,855) at the default scenario. Based on: Derived: price $1,600,000 vs. break-even $332,855

Opportunities

  • The seller bought for $720,000 in Jul 2008, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 2402924420092: last sale 2008-07-01, $720,000
  • Long time on market: room to negotiate. Based on: Listing data: 219 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)$13,237
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$4,132
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 reserve; 8 bedrooms: +1 pt repairs for wear9% / 9%

County record Public record

Recorded astriplex
Living units3
Year built1910
Market value (2026)$697,000
Property tax$13,237
Special assessments$5,144
Homesteadno
Last sale2008-07-01 · $720,000

Source: Hennepin County parcel records.

City rental license

No record in Minneapolis Active Rental Licenses.

Nearest highway

I 35W, about 516 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