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Minneapolis › Marcy Holmes

416 8th Ave SE

Minneapolis, MN · Marcy Holmes · Listing office ↗ · Find the listing ↗

Overpriced
Asking price
$599,000
3 units · $200K per unit
Monthly cash flow
−$1,158
at 20% down, 7%
Estimated rent
$4,650/mo
rough estimate
Break-even price
$381,516
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
$599,000
Monthly cash flow
−$1,158
Cash to close
$137,770
Cap rate
4.1%
Cash-on-cash
−10.1%
DSCR
0.64×
GRM
10.7
Price per unit
$199,667
Price that breaks even
$381,516
Rent that breaks even
$6,173/mo
Cash flow turns positive
year 19
Year 30: property vs stocks
$1.46M vs $1.74M

Monthly breakdown

Rent$4,650
Vacancy (6%)−$279
Collected$4,371
Property tax Public record−$874
Insurance Estimate−$314
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$2,031
Mortgage (principal + interest)−$3,188
Cash flow−$1,158
Principal paid down (equity, not cash)$406

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 $1.46M, stocks $1.74M. Stocks win.

How those totals add up

Year 30
If you buy this building
Sale priceValue grows 3% a year from the price$1,453,930
Minus 6% selling cost−$87,236
Minus loan still owedTenants' rent paid down all $479,200 of principal by year 30$0
Plus rental profits, invested at 7%$76,204 of profit by year 30, before investment growth$97,682
What you'd walk away with$1,464,376
If you put the same money in stocks
Cash to close ($137,770) invested at 7%$1,048,740
Monthly shortfalls ($137,674 total by yr 30) investedThe money you'd have put into the building while it lost money$691,394
What you'd walk away with$1,740,134
Building minus stocks−$275,758

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

  • mediumBought for $500,000 in Apr 2025; asking is 20% more 18 months later. Ask what was done to justify the jump. Public record: Hennepin County parcel 2402924320012: last sale 2025-04-01, $500,000
  • mediumAbout 82 m from I 35W: traffic noise usually costs $50–100/month in rent. Based on: OpenStreetMap: nearest motorway (I 35W) at 82 m
  • mediumAsking is $217,484 above the price where cash flow breaks even ($381,516) at the default scenario. Based on: Derived: price $599,000 vs. break-even $381,516

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 Public recordHennepin County record, current payable year (non-homestead)$10,487
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$3,774
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 1900: +1 pt capital reserve; 8 bedrooms: +1 pt repairs for wear9% / 9%

County record Public record

Recorded astriplex
Living units3
Year built1900
Market value (2026)$552,200
Property tax$10,487
Special assessmentsnone
Homesteadno
Last sale2025-04-01 · $500,000

Source: Hennepin County parcel records.

City rental license

CHOWN: 3 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

I 35W, about 82 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