403 8 1/2 Ave NW

Rochester, MN · View the listing ↗

29 photos

Photos courtesy of Edina Realty, Inc., via Realtor.com.

Asking price: $375,000
Monthly cash flow: −$226
Estimated rent: $3,400/mo
Break-even price: $332,610

Adjust the numbers See the full breakdown

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: $375,000
Cash to close: $86,250
Price per unit: $187,500
GRM: 9.2

Each month

Cash flow: −$226/mo
Cash-on-cash: −3.1%
Cap rate: 5.7%
DSCR: 0.89×

Break-even

Price that breaks even: $332,610
Rent that breaks even: $3,689/mo

Long run

Year 30: property vs stocks: $1.32M vs $706K
Cash flow turns positive: year 6

Monthly

Monthly breakdown

Rent	$3,400
Vacancy (6%)	−$204
Collected	$3,196
Property tax Listing	−$455
Insurance Estimate	−$197
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$272
Capital reserve (8% of rent)	−$272
Net operating income	$1,770
Mortgage (principal + interest)	−$1,996
Cash flow	−$226
Principal paid down (equity, not cash)	$254

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	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $337,500 of principal by year 30	$0
Plus rental profits, invested at 7%$188,407 of profit by year 30, before investment growth	$300,780
What you'd walk away with	$1,156,390
If you put the same money in stocks
Cash to close ($48,750) invested at 7%	$371,097
Monthly shortfalls ($39,028 total by yr 30) investedThe money you'd have put into the building while it lost money	$238,780
What you'd walk away with	$609,877
Building minus stocks	$546,513

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $337,500 of principal by year 30	$0
Plus rental profits, invested at 7%$76,391 of profit by year 30, before investment growth	$102,541
What you'd walk away with	$958,151
If you put the same money in stocks
Cash to close ($48,750) invested at 7%	$371,097
Monthly shortfalls ($91,228 total by yr 30) investedThe money you'd have put into the building while it lost money	$487,964
What you'd walk away with	$859,062
Building minus stocks	$99,089

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $328,500 of principal by year 30	$0
Plus rental profits, invested at 7%$203,651 of profit by year 30, before investment growth	$333,658
What you'd walk away with	$1,166,452
If you put the same money in stocks
Cash to close ($47,450) invested at 7%	$361,202
Monthly shortfalls ($32,446 total by yr 30) investedThe money you'd have put into the building while it lost money	$202,045
What you'd walk away with	$563,247
Building minus stocks	$603,205

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $328,500 of principal by year 30	$0
Plus rental profits, invested at 7%$86,701 of profit by year 30, before investment growth	$119,391
What you'd walk away with	$952,185
If you put the same money in stocks
Cash to close ($47,450) invested at 7%	$361,202
Monthly shortfalls ($79,712 total by yr 30) investedThe money you'd have put into the building while it lost money	$435,201
What you'd walk away with	$796,403
Building minus stocks	$155,782

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $300,000 of principal by year 30	$0
Plus rental profits, invested at 7%$256,854 of profit by year 30, before investment growth	$459,662
What you'd walk away with	$1,315,272
If you put the same money in stocks
Cash to close ($86,250) invested at 7%	$656,557
Monthly shortfalls ($7,534 total by yr 30) investedThe money you'd have put into the building while it lost money	$49,593
What you'd walk away with	$706,150
Building minus stocks	$609,122

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $300,000 of principal by year 30	$0
Plus rental profits, invested at 7%$124,350 of profit by year 30, before investment growth	$186,708
What you'd walk away with	$1,042,318
If you put the same money in stocks
Cash to close ($86,250) invested at 7%	$656,557
Monthly shortfalls ($39,246 total by yr 30) investedThe money you'd have put into the building while it lost money	$224,062
What you'd walk away with	$880,619
Building minus stocks	$161,699

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $292,000 of principal by year 30	$0
Plus rental profits, invested at 7%$273,186 of profit by year 30, before investment growth	$502,038
What you'd walk away with	$1,334,831
If you put the same money in stocks
Cash to close ($83,950) invested at 7%	$639,049
Monthly shortfalls ($4,705 total by yr 30) investedThe money you'd have put into the building while it lost money	$31,637
What you'd walk away with	$670,686
Building minus stocks	$664,145

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $292,000 of principal by year 30	$0
Plus rental profits, invested at 7%$136,361 of profit by year 30, before investment growth	$210,162
What you'd walk away with	$1,042,956
If you put the same money in stocks
Cash to close ($83,950) invested at 7%	$639,049
Monthly shortfalls ($32,096 total by yr 30) investedThe money you'd have put into the building while it lost money	$187,185
What you'd walk away with	$826,234
Building minus stocks	$216,722

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $281,250 of principal by year 30	$0
Plus rental profits, invested at 7%$296,090 of profit by year 30, before investment growth	$564,406
What you'd walk away with	$1,420,016
If you put the same money in stocks
Cash to close ($105,000) invested at 7%	$799,287
Monthly shortfalls ($1,862 total by yr 30) investedThe money you'd have put into the building while it lost money	$12,935
What you'd walk away with	$812,222
Building minus stocks	$607,794

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$910,223
Minus 6% selling cost	−$54,613
Minus loan still owedTenants' rent paid down all $281,250 of principal by year 30	$0
Plus rental profits, invested at 7%$153,564 of profit by year 30, before investment growth	$245,521
What you'd walk away with	$1,101,131
If you put the same money in stocks
Cash to close ($105,000) invested at 7%	$799,287
Monthly shortfalls ($23,552 total by yr 30) investedThe money you'd have put into the building while it lost money	$141,474
What you'd walk away with	$940,761
Building minus stocks	$160,370

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $273,750 of principal by year 30	$0
Plus rental profits, invested at 7%$312,830 of profit by year 30, before investment growth	$612,564
What you'd walk away with	$1,445,358
If you put the same money in stocks
Cash to close ($102,200) invested at 7%	$777,972
Monthly shortfalls ($639 total by yr 30) investedThe money you'd have put into the building while it lost money	$4,533
What you'd walk away with	$782,506
Building minus stocks	$662,852

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$885,951
Minus 6% selling cost	−$53,157
Minus loan still owedTenants' rent paid down all $273,750 of principal by year 30	$0
Plus rental profits, invested at 7%$166,292 of profit by year 30, before investment growth	$273,021
What you'd walk away with	$1,105,815
If you put the same money in stocks
Cash to close ($102,200) invested at 7%	$777,972
Monthly shortfalls ($18,317 total by yr 30) investedThe money you'd have put into the building while it lost money	$112,413
What you'd walk away with	$890,386
Building minus stocks	$215,429

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 $1.32M, stocks $706K. 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.

3 bed estimate $2,000/mo · range $1,525–$2,800 · 6 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
1617 4th St NW, Rochester	$1,075	3 / 1	1,100	0.5 mi	2025-01-03	Apartment
217 14th Ave SW, Rochester	$4,466	3 / 2	2,352	0.6 mi	2024-06-11	Apartment
1823 Quarry Ridge Pl NW, Rochester	$1,975	3 / 2	1,341	0.8 mi	2025-01-03	Apartment
510 3rd Ave SE, Rochester	$1,674	3 / 2	1,120	1.1 mi	2026-09-24	Apartment
110 6th Ave SE, Rochester	$2,000	3 / 1	1,440	1.1 mi	—	Apartment
182 Grandeville Rd SW, Rochester	$2,242	3 / 2	1,440	1.3 mi	2025-01-03	Apartment

2 bed estimate $1,400/mo · range $1,000–$1,775 · 7 rentals within 0.75 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
1117 1st St NW, Rochester	$995	2 / 1	—	0.2 mi	2026-09-22	Apartment
1617 4th St NW, Rochester	$975	2 / 1	896	0.5 mi	2025-01-03	Apartment
217 14th Ave SW, Rochester	$2,521	2 / 2	1,180	0.6 mi	2024-06-11	Apartment
401 Broadway Ave N, Rochester	$1,771	2 / 1	768	0.6 mi	2025-04-30	Apartment
718 5th St SW, Rochester	$1,300	2 / 1	1,211	0.7 mi	2024-09-11	Apartment
1258 17th Ave NW, Rochester	$1,395	2 / 1	825	0.7 mi	2025-01-03	Apartment
1823 Quarry Ridge Pl NW, Rochester	$1,695	2 / 2	1,056	0.8 mi	2025-01-03	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 403 8 1/2 AVE NW

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.	$5,458
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,362
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

2026-09-17New at $375,000

From the listing Listing

Listed as	duplex up and down
Property tax, 2026	$5,458
County	Olmsted
Parcel number	743532011368

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.