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2920 18th Ave NW

Rochester, MN · View the listing ↗

Overpriced

Photos, via Realtor.com.

Asking price
$384,000
2 units · $192K per unit
Monthly cash flow
−$801
at 20% down, 7%
Estimated rent
$2,700/mo
medium confidence · 15 rentals within 1.5 mi
Break-even price
$233,540
where cash flow hits $0

Adjust the numbers See the full breakdown

The numbers

Down payment %
Offer $
Management
Interest rate %
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
$384,000
Cash to close
$88,320
Price per unit
$192,000
GRM
11.9

Each month

Cash flow
−$801/mo
Cash-on-cash
−10.9%
Cap rate
3.9%
DSCR
0.61×

Break-even

Price that breaks even
$233,540
Rent that breaks even
$3,727/mo

Long run

Year 30: property vs stocks
$921K vs $1.18M
Cash flow turns positive
year 21

Monthly

Monthly breakdown

Rent$2,700
Vacancy (6%)−$162
Collected$2,538
Property tax Listing−$431
Insurance Estimate−$202
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$216
Capital reserve (8% of rent)−$216
Net operating income$1,243
Mortgage (principal + interest)−$2,044
Cash flow−$801
Principal paid down (equity, not cash)$260

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$932,069
Minus 6% selling cost−$55,924
Minus loan still owedTenants' rent paid down all $307,200 of principal by year 30$0
Plus rental profits, invested at 7%$36,261 of profit by year 30, before investment growth$44,645
What you'd walk away with$920,790
If you put the same money in stocks
Cash to close ($88,320) invested at 7%$672,314
Monthly shortfalls ($104,311 total by yr 30) investedThe money you'd have put into the building while it lost money$507,353
What you'd walk away with$1,179,667
Building minus stocks−$258,877

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 $921K, stocks $1.18M. 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.

2 bed estimate $1,350/mo · range $1,225–$1,425 · 15 rentals within 1.5 mi

AddressRentBd / BaSq ftDistanceListedType
2438 18 1/2 Ave NW, Rochester $1,135 2 / 1 900 0.5 mi 2025-12-01 Apartment
3906 18th Ave NW, Rochester $995 2 / 1 765 0.6 mi 2025-05-02 Apartment
3908 19th Ave NW, Rochester $1,415 2 / 1.5 1,160 0.6 mi 2025-12-01 Apartment
1720-1722 41st St NW, Rochester $1,275 2 / 1 — 0.7 mi 2026-05-30 Apartment
1515 41st St NW, Rochester $1,334 2 / 1.5 940 0.8 mi 2026-07-10 Apartment
936 41st St NW, Rochester $1,159 2 / 1 860 0.9 mi 2025-01-03 Apartment
2414 30th Ave NW Apt A, Rochester $1,130 2 / 1 900 0.9 mi — Apartment
2414 30th Ave NW Apt B, Rochester $1,175 2 / 1 900 0.9 mi — Apartment
937 41st St NW, Rochester $1,370 2 / 1 988 0.9 mi 2026-01-03 Apartment
2015 41st St NW, Rochester $1,305 2 / 1.5 1,110 0.9 mi 2025-04-12 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 2920 18TH AVE NW
  • mediumAsking is $150,460 above the price where cash flow breaks even ($233,540) at the default scenario. Based on: Derived: price $384,000 vs. break-even $233,540

Opportunities

  • Long time on market: room to negotiate. Based on: Listing data: 130 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.$5,172
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,424
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 rate8% / 8%

Status history

  • New at $384,000

From the listing Listing

Listed asduplex side x side
Property tax, 2026$5,172
CountyOlmsted
Parcel number742242004854

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 Rochester on rental licensing before you buy.