206 3rd St

Far off

13 photos

Photos, via Realtor.com.

Asking price: $475,000
Monthly cash flow: −$1,020
Estimated rent: $2,950/mo
Break-even price: $283,369

Adjust the numbers See the full breakdown

From the listing

Looking to add to your real estate investment portfolio? This two-story brick building offers six income-producing units, including two commercial storefronts and four residential apartments. Positioned on Main Street with high visibility and a strong traffic count, the property enjoys a central location in the heart of town and is just two blocks from the local bike trail. The upper residential units have access to a second-story rear deck, while off-street parking provides added convenience for tenants and visitors. A washer and dryer serves the two upper-level apartments. Situated on two lots, this property combines historic character with practical amenities and a diversified income stream. Whether you're expanding an existing portfolio or seeking your next investment property, this well-cared-for asset offers strong appeal and lasting value. Schedule a personal tour today!

Description from Realtor.com, MLS #6126326. 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: $475,000
Cash to close: $109,250
Price per unit: $237,500
GRM: 13.4

Each month

Cash flow: −$1,020/mo
Cash-on-cash: −11.2%
Cap rate: 3.8%
DSCR: 0.60×

Break-even

Price that breaks even: $283,369
Rent that breaks even: $4,258/mo

Long run

Year 30: property vs stocks: $1.14M vs $1.48M
Cash flow turns positive: year 21

Monthly

Monthly breakdown

Rent	$2,950
Vacancy (6%)	−$177
Collected	$2,773
Property tax Listing	−$329
Insurance Estimate	−$234
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$236
Capital reserve (8% of rent)	−$236
Net operating income	$1,508
Mortgage (principal + interest)	−$2,528
Cash flow	−$1,020
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

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%$16,003 of profit by year 30, before investment growth	$17,712
What you'd walk away with	$1,101,484
If you put the same money in stocks
Cash to close ($61,750) invested at 7%	$470,057
Monthly shortfalls ($230,189 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,051,324
What you'd walk away with	$1,521,380
Building minus stocks	−$419,896

	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 ($356,666 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,421,818
What you'd walk away with	$1,891,874
Building minus stocks	−$808,101

	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%$20,410 of profit by year 30, before investment growth	$22,995
What you'd walk away with	$1,083,951
If you put the same money in stocks
Cash to close ($60,450) invested at 7%	$460,161
Monthly shortfalls ($212,769 total by yr 30) investedThe money you'd have put into the building while it lost money	$986,993
What you'd walk away with	$1,447,154
Building minus stocks	−$363,203

	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 ($334,840 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,352,205
What you'd walk away with	$1,812,365
Building minus stocks	−$751,409

	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%$46,256 of profit by year 30, before investment growth	$56,850
What you'd walk away with	$1,140,623
If you put the same money in stocks
Cash to close ($109,250) invested at 7%	$831,639
Monthly shortfalls ($133,850 total by yr 30) investedThe money you'd have put into the building while it lost money	$649,574
What you'd walk away with	$1,481,213
Building minus stocks	−$340,590

	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%$3,192 of profit by year 30, before investment growth	$3,304
What you'd walk away with	$1,087,077
If you put the same money in stocks
Cash to close ($109,250) invested at 7%	$831,639
Monthly shortfalls ($233,267 total by yr 30) investedThe money you'd have put into the building while it lost money	$984,234
What you'd walk away with	$1,815,873
Building minus stocks	−$728,796

	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%$53,072 of profit by year 30, before investment growth	$66,518
What you'd walk away with	$1,127,475
If you put the same money in stocks
Cash to close ($106,950) invested at 7%	$814,131
Monthly shortfalls ($121,505 total by yr 30) investedThe money you'd have put into the building while it lost money	$598,911
What you'd walk away with	$1,413,042
Building minus stocks	−$285,567

	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%$5,229 of profit by year 30, before investment growth	$5,505
What you'd walk away with	$1,066,461
If you put the same money in stocks
Cash to close ($106,950) invested at 7%	$814,131
Monthly shortfalls ($216,142 total by yr 30) investedThe money you'd have put into the building while it lost money	$926,104
What you'd walk away with	$1,740,234
Building minus stocks	−$673,773

	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%$67,921 of profit by year 30, before investment growth	$88,525
What you'd walk away with	$1,172,298
If you put the same money in stocks
Cash to close ($133,000) invested at 7%	$1,012,430
Monthly shortfalls ($98,632 total by yr 30) investedThe money you'd have put into the building while it lost money	$502,142
What you'd walk away with	$1,514,571
Building minus stocks	−$342,273

	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%$10,877 of profit by year 30, before investment growth	$11,898
What you'd walk away with	$1,095,671
If you put the same money in stocks
Cash to close ($133,000) invested at 7%	$1,012,430
Monthly shortfalls ($184,068 total by yr 30) investedThe money you'd have put into the building while it lost money	$813,720
What you'd walk away with	$1,826,150
Building minus stocks	−$730,479

	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%$75,705 of profit by year 30, before investment growth	$100,585
What you'd walk away with	$1,161,541
If you put the same money in stocks
Cash to close ($130,200) invested at 7%	$991,116
Monthly shortfalls ($88,453 total by yr 30) investedThe money you'd have put into the building while it lost money	$457,641
What you'd walk away with	$1,448,756
Building minus stocks	−$287,215

	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%$14,347 of profit by year 30, before investment growth	$16,010
What you'd walk away with	$1,076,966
If you put the same money in stocks
Cash to close ($130,200) invested at 7%	$991,116
Monthly shortfalls ($169,575 total by yr 30) investedThe money you'd have put into the building while it lost money	$761,271
What you'd walk away with	$1,752,387
Building minus stocks	−$675,421

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 $1.14M, stocks $1.48M. 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.

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
1741 Sahlman Ave, Cloquet	$1,440	3 / 2	1,080	3.4 mi	2025-01-03	Apartment
13302 W 3rd St, Duluth	$1,650	3 / 1	1,600	7.0 mi	2025-08-26	Apartment
5725 W 8th St Unit 2, Duluth	$1,500	3 / 1	1,300	13.3 mi	2023-07-27	Apartment
101 N 30th Ave W, Duluth	$1,030	3 / 1	—	15.1 mi	2026-07-14	Apartment
831 W 3rd St, Duluth	$1,475	3 / 1	—	16.8 mi	—	Apartment
421 N 1st Ave W, Duluth	$1,200	3 / 1	913	17.4 mi	2026-07-17	Apartment
504 N 2nd Ave E, Duluth	$1,200	3 / 1	972	17.7 mi	2026-09-10	Apartment
322-324 E 5th St, Duluth	$1,325	3 / 1	818	17.8 mi	2026-05-02	Apartment
407 E 5th St Unit Lower, Duluth	$1,700	3 / 1	1,200	17.9 mi	2024-04-05	Duplex triplex
110-114 N 6th Ave E, Duluth	$1,395	3 / 1	862	18.1 mi	2026-06-05	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 206 3RD ST
mediumAsking is $191,631 above the price where cash flow breaks even ($283,369) at the default scenario. Based on: Derived: price $475,000 vs. break-even $283,369

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 103 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 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.	$3,946
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,808
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

2026-06-24New at $475,000

From the listing Listing

Listed as	5-10 units
Property tax, 2026	$3,946
County	Carlton County
Parcel number	15-010-2140 and 15-010-2160

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 Carlton on rental licensing before you buy.