506 W College St

Albert Lea, MN · View the listing ↗

Cash flows

24 photos

Photos, via Realtor.com.

Asking price: $179,900
Monthly cash flow: $199
Estimated rent: $2,500/mo
Break-even price: $217,213

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: $179,900
Cash to close: $41,377
Price per unit: $89,950
GRM: 6.0

Each month

Cash flow: $199/mo
Cash-on-cash: 5.8%
Cap rate: 7.7%
DSCR: 1.21×

Break-even

Price that breaks even: $217,213
Rent that breaks even: $2,242/mo

Long run

Year 30: property vs stocks: $1.05M vs $315K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$2,500
Vacancy (6%)	−$150
Collected	$2,350
Property tax Listing	−$333
Insurance Estimate	−$206
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$200
Capital reserve (9% of rent)	−$225
Net operating income	$1,156
Mortgage (principal + interest)	−$958
Cash flow	$199
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%$230,301 of profit by year 30, before investment growth	$477,068
What you'd walk away with	$887,532
If you put the same money in stocks
Cash to close ($23,387) invested at 7%	$178,028
Monthly shortfalls ($267 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,902
What you'd walk away with	$179,930
Building minus stocks	$707,602

	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%$119,136 of profit by year 30, before investment growth	$209,874
What you'd walk away with	$620,338
If you put the same money in stocks
Cash to close ($23,387) invested at 7%	$178,028
Monthly shortfalls ($9,849 total by yr 30) investedThe money you'd have put into the building while it lost money	$63,696
What you'd walk away with	$241,724
Building minus stocks	$378,614

	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%$251,860 of profit by year 30, before investment growth	$544,778
What you'd walk away with	$932,427
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	$764,295

	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%$137,398 of profit by year 30, before investment growth	$256,960
What you'd walk away with	$644,609
If you put the same money in stocks
Cash to close ($22,087) invested at 7%	$168,132
Monthly shortfalls ($6,285 total by yr 30) investedThe money you'd have put into the building while it lost money	$41,170
What you'd walk away with	$209,302
Building minus stocks	$435,307

	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%$277,979 of profit by year 30, before investment growth	$642,146
What you'd walk away with	$1,052,610
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	$737,638

	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%$157,387 of profit by year 30, before investment growth	$314,259
What you'd walk away with	$724,724
If you put the same money in stocks
Cash to close ($41,377) invested at 7%	$314,972
Monthly shortfalls ($155 total by yr 30) investedThe money you'd have put into the building while it lost money	$1,102
What you'd walk away with	$316,074
Building minus stocks	$408,650

	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%$297,139 of profit by year 30, before investment growth	$702,477
What you'd walk away with	$1,090,125
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	$792,661

	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%$176,393 of profit by year 30, before investment growth	$373,489
What you'd walk away with	$761,137
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	$463,673

	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%$299,523 of profit by year 30, before investment growth	$709,980
What you'd walk away with	$1,120,445
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	$737,000

	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%$178,776 of profit by year 30, before investment growth	$380,993
What you'd walk away with	$791,457
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	$408,012

	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%$317,486 of profit by year 30, before investment growth	$766,541
What you'd walk away with	$1,154,189
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	$792,059

	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%$196,739 of profit by year 30, before investment growth	$437,553
What you'd walk away with	$825,202
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	$463,072

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 $1.05M, 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 $1,550/mo · range $1,350–$1,775 · 141 rentals across Greater Minnesota

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
203 31st St SW, Austin	$1,270	3 / 2	1,096	17.8 mi	2025-01-03	Apartment
1105 3rd St NW, Austin	$1,300	3 / 1	950	19.9 mi	2025-07-30	Apartment
3rd St SE, Austin	$1,295	3 / 2	1,225	20.2 mi	2026-03-20	Apartment
2nd Dr NE, Austin	$1,275	3 / 1.5	1,296	20.2 mi	2026-09-26	Apartment
630 Maple Ln, Eagle Lake	$1,495	3 / 1.5	1,200	43.1 mi	2026-08-26	Apartment
217 Thomas Dr E, Eagle Lake	$1,495	3 / 2	1,232	43.1 mi	2025-05-29	Apartment
96 Valley Ln, Eagle Lake	$1,400	3 / 1.5	1,100	43.7 mi	2026-06-03	Apartment
101 Eagle Ave Apt 1, Eagle Lake	$1,600	3 / 3	1,242	43.9 mi	2024-05-16	Apartment
9 1st St SW Apt 1, Faribault	$1,650	3 / 1	—	44.7 mi	2026-09-22	Apartment
3200 Noble Dr, Mankato	$2,150	3 / 2	1,628	45.0 mi	2026-04-02	Apartment

2 bed estimate $950/mo · range $925–$975 · 6 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
133 W William St Apt 201, Albert Lea	$865	2 / 1	788	0.2 mi	—	Apartment
139 E William St, Albert Lea	$880	2 / 1	894	0.3 mi	2025-05-12	Apartment
200 E 3rd St Unit Downstairs, Albert Lea	$850	2 / 1	800	0.5 mi	2026-10-04	Duplex triplex
1302 Madison Ave, Albert Lea	$895	2 / 1	870	0.7 mi	2026-06-24	Apartment
1215 Saint John Ave Apt 3, Albert Lea	$950	2 / 1	769	0.8 mi	—	Duplex triplex
1516/1520 E Hawthorne St, Albert Lea	$895	2 / 1	—	1.4 mi	2025-09-06	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 506 COLLEGE ST W

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.	$3,994
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,473
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 1883: +1 pt capital reserve	8% / 9%

Status history

2026-08-21New at $179,900

From the listing Listing

Listed as	duplex up and down
Property tax, 2026	$3,994
County	Freeborn
Parcel number	340072040

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 Albert Lea on rental licensing before you buy.