Dooralytics
Back to Greater Minnesota

725 W 2nd St

Duluth, MN · View the listing ↗

Close

Photos, via Realtor.com.

Asking price
$225,000
2 units · $112K per unit
Monthly cash flow
−$11
at 20% down, 7%
Estimated rent
$2,450/mo
low confidence · 7 rentals within 1.5 mi
Break-even price
$222,933
where cash flow hits $0

Adjust the numbers See the full breakdown

The numbers

Down payment %
Offer $
Management
Interest rate %
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
$225,000
Cash to close
$51,750
Price per unit
$112,500
GRM
7.7

Each month

Cash flow
−$11/mo
Cash-on-cash
−0.3%
Cap rate
6.3%
DSCR
0.99×

Break-even

Price that breaks even
$222,933
Rent that breaks even
$2,464/mo

Long run

Year 30: property vs stocks
$938K vs $395K
Cash flow turns positive
year 2

Monthly

Monthly breakdown

Rent$2,450
Vacancy (6%)−$147
Collected$2,303
Property tax Listing−$260
Insurance Estimate−$209
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$196
Capital reserve (9% of rent)−$220
Net operating income$1,187
Mortgage (principal + interest)−$1,198
Cash flow−$11
Principal paid down (equity, not cash)$152

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$546,134
Minus 6% selling cost−$32,768
Minus loan still owedTenants' rent paid down all $180,000 of principal by year 30$0
Plus rental profits, invested at 7%$212,424 of profit by year 30, before investment growth$424,692
What you'd walk away with$938,058
If you put the same money in stocks
Cash to close ($51,750) invested at 7%$393,934
Monthly shortfalls ($132 total by yr 30) investedThe money you'd have put into the building while it lost money$939
What you'd walk away with$394,874
Building minus stocks$543,184

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 $938K, stocks $395K. 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.

1 bed estimate $1,225/mo · range $1,225–$1,500 · 7 rentals within 0.75 mi

AddressRentBd / BaSq ftDistanceListedType
715 W 2nd St, Duluth $1,055 1 / 1 492 0.0 mi 2026-09-05 Apartment
521 W 2nd St, Duluth $1,260 1 / 1 648 0.2 mi 2025-02-28 Apartment
5 W 1st St Unit 2201, Duluth $1,495 1 / 1 776 0.7 mi — Apartment
5 W 1st St Unit 2-207, Duluth $1,250 1 / 1 589 0.7 mi — Apartment
1 W 4th St, Duluth $1,500 1 / 1 — 0.7 mi 2026-02-12 Apartment
1 E 1st St Unit 1-501, Duluth $1,400 1 / 1 601 0.7 mi — Apartment
1 E 1st St Unit 1-212, Duluth $1,245 1 / 1 495 0.7 mi — Apartment

2 bed estimate $1,225/mo · range $1,200–$1,550 · 11 rentals within 1.5 mi

AddressRentBd / BaSq ftDistanceListedType
529 W 4th St # 2, Duluth $1,225 2 / 1 750 0.2 mi — Apartment
327 W 4th St, Duluth $1,200 2 / 1 803 0.4 mi 2026-08-12 Apartment
5 W 1st St Apt 312, Duluth $1,745 2 / 1 — 0.7 mi 2025-06-18 Apartment
15 E 4th St Apt B, Duluth $1,025 2 / 1 — 0.7 mi — Apartment
308 E 5th St, Duluth $1,200 2 / 1 587 1.0 mi 2026-08-14 Apartment
313 N 21st Ave, West Duluth $1,195 2 / 1 700 1.2 mi 2026-07-14 Duplex triplex
523 E 6th St, Duluth $1,225 2 / 1 800 1.2 mi 2026-08-07 Apartment
611 E 6th St, Duluth $1,275 2 / 1 100 1.3 mi 2026-06-12 Apartment
627 E 4th St, Duluth $1,495 2 / 1 850 1.3 mi 2026-05-19 Apartment
330 E Palm St, Duluth $2,427 2 / 2 1,081 1.4 mi 2024-04-12 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 725 2ND 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.$3,126
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,514
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 1894: +1 pt capital reserve8% / 9%

Status history

  • New at $225,000

From the listing Listing

Listed asduplex
Property tax, 2026$3,126
CountySt. Louis County
Parcel number010-1240-00285

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 Duluth on rental licensing before you buy.