424 W Birch Ave

Cash flows

56 photos

Photos courtesy of KELLER WILLIAMS REALTY BRAINERD LAK - Broker, via Realtor.com.

Asking price: $179,900
Monthly cash flow: $755
Estimated rent: $3,050/mo
Break-even price: $321,661

Adjust the numbers See the full breakdown

From the listing

Excellent investor opportunity with this well maintained duplex in Fergus Falls offering strong upside and immediate appeal. The main floor unit features 3 bedrooms, a 3 season front porch, and laundry located in the lower level, while the upper unit offers 3 bedrooms and convenient in-unit laundry hookups. Updates throughout the property enhance long-term durability and tenant demand including low maintenance vinyl siding and architectural shingles. Impressive as it is, with clear potential to increase rents and raise cash flow. Duplexes of this quality and condition are rarely available. This property is an ideal addition to any investment portfolio.

Listing courtesy of KELLER WILLIAMS REALTY BRAINERD LAK - Broker (Ryan Hanson). Description from Realtor.com, MLS #7008977. 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: $179,900
Cash to close: $41,377
Price per unit: $89,950
GRM: 4.9

Each month

Cash flow: $755/mo
Cash-on-cash: 21.9%
Cap rate: 11.4%
DSCR: 1.79×

Break-even

Price that breaks even: $321,661
Rent that breaks even: $2,070/mo

Long run

Year 30: property vs stocks: $1.93M vs $315K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$3,050
Vacancy (6%)	−$183
Collected	$2,867
Property tax Listing	−$210
Insurance Estimate	−$196
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$244
Capital reserve (9% of rent)	−$274
Net operating income	$1,712
Mortgage (principal + interest)	−$958
Cash flow	$755
Principal paid down (equity, not cash)	$122

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	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $161,910 of principal by year 30	$0
Plus rental profits, invested at 7%$553,841 of profit by year 30, before investment growth	$1,352,086
What you'd walk away with	$1,762,551
If you put the same money in stocks
Cash to close ($23,387) invested at 7%	$178,028
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$178,028
Building minus stocks	$1,584,523

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $161,910 of principal by year 30	$0
Plus rental profits, invested at 7%$406,530 of profit by year 30, before investment growth	$950,721
What you'd walk away with	$1,361,186
If you put the same money in stocks
Cash to close ($23,387) invested at 7%	$178,028
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$178,028
Building minus stocks	$1,183,158

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $152,910 of principal by year 30	$0
Plus rental profits, invested at 7%$575,666 of profit by year 30, before investment growth	$1,421,699
What you'd walk away with	$1,809,348
If you put the same money in stocks
Cash to close ($22,087) invested at 7%	$168,132
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$168,132
Building minus stocks	$1,641,216

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $152,910 of principal by year 30	$0
Plus rental profits, invested at 7%$428,356 of profit by year 30, before investment growth	$1,020,334
What you'd walk away with	$1,407,983
If you put the same money in stocks
Cash to close ($22,087) invested at 7%	$168,132
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$168,132
Building minus stocks	$1,239,851

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $143,920 of principal by year 30	$0
Plus rental profits, invested at 7%$601,785 of profit by year 30, before investment growth	$1,519,067
What you'd walk away with	$1,929,531
If you put the same money in stocks
Cash to close ($41,377) invested at 7%	$314,972
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$314,972
Building minus stocks	$1,614,559

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $143,920 of principal by year 30	$0
Plus rental profits, invested at 7%$454,475 of profit by year 30, before investment growth	$1,117,702
What you'd walk away with	$1,528,166
If you put the same money in stocks
Cash to close ($41,377) invested at 7%	$314,972
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$314,972
Building minus stocks	$1,213,194

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $135,920 of principal by year 30	$0
Plus rental profits, invested at 7%$620,946 of profit by year 30, before investment growth	$1,579,398
What you'd walk away with	$1,967,046
If you put the same money in stocks
Cash to close ($39,077) invested at 7%	$297,464
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$297,464
Building minus stocks	$1,669,582

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $135,920 of principal by year 30	$0
Plus rental profits, invested at 7%$473,636 of profit by year 30, before investment growth	$1,178,033
What you'd walk away with	$1,565,681
If you put the same money in stocks
Cash to close ($39,077) invested at 7%	$297,464
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$297,464
Building minus stocks	$1,268,217

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $134,925 of principal by year 30	$0
Plus rental profits, invested at 7%$623,329 of profit by year 30, before investment growth	$1,586,902
What you'd walk away with	$1,997,366
If you put the same money in stocks
Cash to close ($50,372) invested at 7%	$383,445
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$383,445
Building minus stocks	$1,613,921

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$436,665
Minus 6% selling cost	−$26,200
Minus loan still owedTenants' rent paid down all $134,925 of principal by year 30	$0
Plus rental profits, invested at 7%$476,019 of profit by year 30, before investment growth	$1,185,537
What you'd walk away with	$1,596,001
If you put the same money in stocks
Cash to close ($50,372) invested at 7%	$383,445
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$383,445
Building minus stocks	$1,212,556

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $127,425 of principal by year 30	$0
Plus rental profits, invested at 7%$641,292 of profit by year 30, before investment growth	$1,643,462
What you'd walk away with	$2,031,111
If you put the same money in stocks
Cash to close ($47,572) invested at 7%	$362,130
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$362,130
Building minus stocks	$1,668,981

	Year 30
If you buy this building
Sale priceValue grows 3% a year from the price	$412,392
Minus 6% selling cost	−$24,744
Minus loan still owedTenants' rent paid down all $127,425 of principal by year 30	$0
Plus rental profits, invested at 7%$493,982 of profit by year 30, before investment growth	$1,242,097
What you'd walk away with	$1,629,745
If you put the same money in stocks
Cash to close ($47,572) invested at 7%	$362,130
Monthly shortfalls ($0 total by yr 30) investedThe money you'd have put into the building while it lost money	$0
What you'd walk away with	$362,130
Building minus stocks	$1,267,615

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 $1.93M, stocks $315K. 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 $1,525/mo · range $1,325–$1,750 · 141 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
520 3rd St NW, Pelican Rapids	$1,395	3 / 1	950	19.7 mi	2025-01-07	Apartment
418 S 8th St, Breckenridge	$1,295	3 / 1	905	24.1 mi	2025-01-07	Apartment
605 Buffalo Ave, Breckenridge	$800	3 / 1	1,196	24.2 mi	2026-09-15	Apartment
3904 County Road 42 NE Unit Ne, Alexandria	$1,650	3 / 1	—	42.2 mi	—	Apartment
1560 Hartford St, Hawley	$1,325	3 / 2	1,311	42.3 mi	2026-09-17	Apartment
122 City Park Rd, Alexandria	$1,300	3 / 1	—	43.7 mi	—	Apartment
411 Elm St Apt 3, Alexandria	$1,500	3 / 2	—	43.7 mi	—	Apartment
1717 Nokomis St Apt C, Alexandria	$950	3 / 1	—	44.9 mi	—	Apartment
1721 Nokomis St Apt 2, Alexandria	$950	3 / 1	—	44.9 mi	—	Apartment
1805 7th Ave E, Alexandria	$1,595	3 / 1	950	45.0 mi	2025-01-07	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 424 BIRCH AVE W

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 263 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 2025. 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.	$2,526
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,352
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 1919: +1 pt capital reserve	8% / 9%

Status history

2026-01-15New at $179,900

From the listing Listing

Listed as	duplex up and down
Property tax, 2025	$2,526
County	Otter Tail
Parcel number	71003990563000

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 Fergus Falls on rental licensing before you buy.