Minneapolis › Hiawatha

3609 E 42nd St

Minneapolis, MN · Hiawatha · Listing office ↗ · Find the listing ↗

Far off

Asking price: $335,000
Monthly cash flow: −$748
Estimated rent: $2,400/mo
Break-even price: $194,460

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

2 bed / 1 bath (est.)$1,350 $1,150–$1,550
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: $335,000
Monthly cash flow: −$748
Cash to close: $77,050
Cap rate: 3.7%
Cash-on-cash: −11.6%
DSCR: 0.58×
GRM: 11.6
Price per unit: $167,500
Price that breaks even: $194,460
Rent that breaks even: $3,371/mo
Cash flow turns positive: year 23
Year 30: property vs stocks: $786K vs $1.09M

Monthly breakdown

Rent	$2,400
Vacancy (6%)	−$144
Collected	$2,256
Property tax Public record	−$387
Insurance Estimate	−$196
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$192
Capital reserve (9% of rent)	−$216
Net operating income	$1,035
Mortgage (principal + interest)	−$1,783
Cash flow	−$748
Principal paid down (equity, not cash)	$227

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 $786K, stocks $1.09M. Stocks win.

How those totals add up

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $301,500 of principal by year 30	$0
Plus rental profits, invested at 7%$3,326 of profit by year 30, before investment growth	$3,474
What you'd walk away with	$767,819
If you put the same money in stocks
Cash to close ($43,550) invested at 7%	$331,514
Monthly shortfalls ($183,091 total by yr 30) investedThe money you'd have put into the building while it lost money	$800,445
What you'd walk away with	$1,131,959
Building minus stocks	−$364,140

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $301,500 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	$764,345
If you put the same money in stocks
Cash to close ($43,550) invested at 7%	$331,514
Monthly shortfalls ($295,682 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,112,799
What you'd walk away with	$1,444,313
Building minus stocks	−$679,968

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $292,500 of principal by year 30	$0
Plus rental profits, invested at 7%$6,115 of profit by year 30, before investment growth	$6,562
What you'd walk away with	$748,091
If you put the same money in stocks
Cash to close ($42,250) invested at 7%	$321,618
Monthly shortfalls ($164,054 total by yr 30) investedThe money you'd have put into the building while it lost money	$733,920
What you'd walk away with	$1,055,538
Building minus stocks	−$307,447

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $292,500 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	$741,529
If you put the same money in stocks
Cash to close ($42,250) invested at 7%	$321,618
Monthly shortfalls ($273,856 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,043,186
What you'd walk away with	$1,364,804
Building minus stocks	−$623,275

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $268,000 of principal by year 30	$0
Plus rental profits, invested at 7%$18,449 of profit by year 30, before investment growth	$21,537
What you'd walk away with	$785,882
If you put the same money in stocks
Cash to close ($77,050) invested at 7%	$586,524
Monthly shortfalls ($108,933 total by yr 30) investedThe money you'd have put into the building while it lost money	$507,566
What you'd walk away with	$1,094,091
Building minus stocks	−$308,209

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $268,000 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	$764,345
If you put the same money in stocks
Cash to close ($77,050) invested at 7%	$586,524
Monthly shortfalls ($206,401 total by yr 30) investedThe money you'd have put into the building while it lost money	$801,858
What you'd walk away with	$1,388,382
Building minus stocks	−$624,037

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $260,000 of principal by year 30	$0
Plus rental profits, invested at 7%$23,963 of profit by year 30, before investment growth	$28,785
What you'd walk away with	$770,314
If you put the same money in stocks
Cash to close ($74,750) invested at 7%	$569,016
Monthly shortfalls ($95,287 total by yr 30) investedThe money you'd have put into the building while it lost money	$454,483
What you'd walk away with	$1,023,499
Building minus stocks	−$253,185

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $260,000 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	$741,529
If you put the same money in stocks
Cash to close ($74,750) invested at 7%	$569,016
Monthly shortfalls ($187,240 total by yr 30) investedThe money you'd have put into the building while it lost money	$741,526
What you'd walk away with	$1,310,543
Building minus stocks	−$569,014

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $251,250 of principal by year 30	$0
Plus rental profits, invested at 7%$30,902 of profit by year 30, before investment growth	$38,360
What you'd walk away with	$802,705
If you put the same money in stocks
Cash to close ($93,800) invested at 7%	$714,030
Monthly shortfalls ($81,269 total by yr 30) investedThe money you'd have put into the building while it lost money	$398,071
What you'd walk away with	$1,112,100
Building minus stocks	−$309,395

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$813,133
Minus 6% selling cost	−$48,788
Minus loan still owedTenants' rent paid down all $251,250 of principal by year 30	$0
Plus rental profits, invested at 7%$1 of profit by year 30, before investment growth	$1
What you'd walk away with	$764,346
If you put the same money in stocks
Cash to close ($93,800) invested at 7%	$714,030
Monthly shortfalls ($166,285 total by yr 30) investedThe money you'd have put into the building while it lost money	$675,541
What you'd walk away with	$1,389,570
Building minus stocks	−$625,224

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $243,750 of principal by year 30	$0
Plus rental profits, invested at 7%$37,660 of profit by year 30, before investment growth	$48,171
What you'd walk away with	$789,700
If you put the same money in stocks
Cash to close ($91,000) invested at 7%	$692,715
Monthly shortfalls ($70,063 total by yr 30) investedThe money you'd have put into the building while it lost money	$351,322
What you'd walk away with	$1,044,037
Building minus stocks	−$254,337

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$788,860
Minus 6% selling cost	−$47,332
Minus loan still owedTenants' rent paid down all $243,750 of principal by year 30	$0
Plus rental profits, invested at 7%$740 of profit by year 30, before investment growth	$750
What you'd walk away with	$742,279
If you put the same money in stocks
Cash to close ($91,000) invested at 7%	$692,715
Monthly shortfalls ($149,060 total by yr 30) investedThe money you'd have put into the building while it lost money	$619,729
What you'd walk away with	$1,312,444
Building minus stocks	−$570,165

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

mediumAsking is $140,540 above the price where cash flow breaks even ($194,460) at the default scenario. Based on: Derived: price $335,000 vs. break-even $194,460
lowSold for $623,780 in Sep 2024, more than today's asking price. Ask why the owner is selling again so soon. Public record: Hennepin County parcel 0702823310022: last sale 2024-09-01, $623,780

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 126 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)	$4,649
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,347
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. built 1900: +1 pt capital reserve	8% / 9%

County record Public record

Recorded as	duplex
Living units	2
Year built	1900
Market value (2026)	$244,800
Property tax	$4,649
Special assessments	none
Homestead	no
Last sale	2024-09-01 · $623,780

Source: Hennepin County parcel records.

City rental license

CHOWN: 2 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

MN 55, about 261 m away.

Crime in Hiawatha

368 incidents in the last 12 months (59 per 1,000 residents), −12% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).

Status history

2026-05-29New at $335,000