1015 W 4th St

Fourplex · 4 units: 1 bed / 1 bath ×2, 3 bed / 1 bath and 2 bed / 1 bath · 2,254 sq ft

Cash flows

70 photos

Photos, via Realtor.com.

Asking price: $449,900
Monthly cash flow: $457
Estimated rent: $5,125/mo
Break-even price: $535,802

Adjust the numbers See the full breakdown

From the listing

This property offers two houses on the same lot (1015 W. 4th St. and 1015 1/2 W.4th ST.) plus an additional vacant lot. The front house, 1015, has a lower unit that was a licensed Child Care Center for over 25 years. This unit has a full kitchen and a 3/4 bath. It can easily be converted into a one bedroom rental unit. The front house upper unit has 3 bedrooms, a full bath with whirlpool tub and a spacious deck off the kitchen. The second house, 1015 1/2, is a duplex currently licensed for rental with a 1 bedroom lower unit and a 2+ bedroom upper. This house has shared laundry facilities in the basement. The vacant lot has a fenced play area for children and/or pets, a fenced garden and a patio with a fire pit. This well maintained property in a quiet Observation Hill neighborhood is only half a block from a bus line. It's minutes from downtown yet is within walking distance to Enger Park, Twin Ponds and the Superior Hiking Trail.

Description from Realtor.com, MLS #6128219. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is two houses on one lot, four units total, plus a separate vacant lot, listed at $449,900. Our numbers show about $438/month cash flow and a 7.56% cap at the ask, with a break-even price near $532K. That only holds if the lower unit of the front house becomes a legal rental and the rents reach our estimates. Our estimates are mid-$1,200s per unit, and the one actual rent we have is $700 on the 2-bed. The county parcel didn't match, so taxes and unit count are unverified. Check the rental licenses, the rent roll, and the status of the daycare unit first. It's worth a showing if the paperwork supports four licensed units.

Things to consider

Four units, but only three are clearly licensed The cash flow assumes the former daycare becomes a rental. Conversion costs, permits and licensing time cut into the return.Listing says: “It can easily be converted into a one bedroom rental unit.”
Tax and parcel details are unverified We couldn't match a county parcel, so taxes and unit count in our numbers are estimates. Real taxes could change cash flow a lot.
Current rent is far below our estimate A $700 rent on the 2-bed versus about $1,225 estimated suggests upside, but also means your income at closing may be far lower than our model.
Break-even price is well above asking Our break-even is about $532K versus $449,900 asking, which leaves some margin if rents and costs hold up.
Two buildings mean two sets of systems Two roofs, two heating systems and two sets of exterior upkeep raise reserves. 1911 construction adds age risk.

From the photos

Based on 10 of the listing photos. Photos can hide as much as they show; an inspection is the real answer.

Condition and repairs

neededDaycare lower unit needs conversion to a one-bedroom rentalListing says: It can easily be converted into a one bedroom rental unit.

AI-assisted first read of the listing description and photos (Claude), checked against public records. Every rent and repair above quotes the listing; verify with the agent, leases and an inspection.

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: $449,900
Cash to close: $103,477
Price per unit: $112,475
GRM: 7.3

Each month

Cash flow: $457/mo
Cash-on-cash: 5.3%
Cap rate: 7.6%
DSCR: 1.19×

Break-even

Price that breaks even: $535,802
Rent that breaks even: $4,531/mo

Long run

Year 30: property vs stocks: $2.61M vs $788K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$5,125
Vacancy (6%)	−$308
Collected	$4,818
Property tax Listing	−$313
Insurance Estimate	−$382
Water, sewer, trash Estimate	−$340
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$410
Capital reserve (9% of rent)	−$461
Net operating income	$2,852
Mortgage (principal + interest)	−$2,395
Cash flow	$457
Principal paid down (equity, not cash)	$305

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

If you buy this building$2,612,812

Your equity when you sell: $1,026,503
Rental profits, invested at 7%: $1,586,308

Same money in stocks$787,693

Cash to close, invested at 7%: $787,693

The building comes out $1,825,119 ahead after 30 years.

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 $2.61M, stocks $788K. The property wins.

Comparable rentals

The closest rental listings with each unit's bedroom count, as of 2026-10-06. 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 $1,275/mo · range $1,075–$1,475 · 10 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
715 W 2nd St, Duluth	$1,055	1 / 1	492	0.3 mi	2026-09-05	Apartment
521 W 2nd St, Duluth	$1,260	1 / 1	648	0.5 mi	2025-02-28	Apartment
1 W 4th St, Duluth	$1,500	1 / 1	—	0.9 mi	2026-02-12	Apartment
5 W 1st St Unit 2201, Duluth	$1,495	1 / 1	776	0.9 mi	—	Apartment
5 W 1st St Unit 2-207, Duluth	$1,250	1 / 1	589	0.9 mi	—	Apartment
1 E 1st St Unit 1-501, Duluth	$1,400	1 / 1	601	0.9 mi	—	Apartment
1 E 1st St Unit 1-212, Duluth	$1,245	1 / 1	495	0.9 mi	—	Apartment
113-115 N 22nd Ave W, Duluth	$995	1 / 1	537	1.1 mi	2026-03-25	Apartment
307 E 3rd St Apt 72, Duluth	$895	1 / 1	—	1.2 mi	—	Apartment
1015 E Central Entrance, Duluth	$1,225	1 / 1	667	1.4 mi	2026-03-27	Apartment

3 bed estimate $1,400/mo · range $1,225–$1,575 · 6 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
831 W 3rd St, Duluth	$1,475	3 / 1	—	0.2 mi	—	Apartment
421 N 1st Ave W, Duluth	$1,200	3 / 1	913	0.8 mi	2026-07-17	Apartment
504 N 2nd Ave E, Duluth	$1,200	3 / 1	972	1.1 mi	2026-09-10	Apartment
322-324 E 5th St, Duluth	$1,325	3 / 1	818	1.2 mi	2026-05-02	Apartment
407 E 5th St Unit Lower, Duluth	$1,700	3 / 1	1,200	1.3 mi	2024-04-05	Duplex triplex
110-114 N 6th Ave E, Duluth	$1,395	3 / 1	862	1.5 mi	2026-06-05	Apartment

2 bed estimate $1,225/mo · range $1,225–$1,275 · 7 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
529 W 4th St # 2, Duluth	$1,225	2 / 1	750	0.4 mi	—	Apartment
327 W 4th St, Duluth	$1,200	2 / 1	803	0.6 mi	2026-08-12	Apartment
313 N 21st Ave, West Duluth	$1,195	2 / 1	700	0.9 mi	2026-07-14	Duplex triplex
308 E 5th St, Duluth	$1,200	2 / 1	587	1.2 mi	2026-08-14	Apartment
523 E 6th St, Duluth	$1,225	2 / 1	800	1.4 mi	2026-08-07	Apartment
2705 W 2nd St, Duluth	$1,195	2 / 1	685	1.5 mi	2026-09-09	Duplex triplex
611 E 6th St, Duluth	$1,275	2 / 1	100	1.5 mi	2026-06-12	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

highFront lower unit is not a licensed rental. It is a former daycare and needs conversion work, permits and a license. Listing says: has a lower unit that was a licensed Child Care Center for over 25 years · AI review
mediumCouldn't match this address to a county parcel record, so taxes and unit count are unverified. Public record: County parcels: no match for 1015 4TH ST W
mediumTwo houses on one lot with a half-numbered address. Check how they are parceled, taxed and insured, and whether they can be sold separately. Listing says: two houses on the same lot (1015 W. 4th St. and 1015 1/2 W.4th ST.) · AI review
mediumHeat type is unknown. Photo 8 shows a radiator, so the house appears to have boiler heat. Check whether each house has its own boiler and who pays. Based on: photo 8 · AI review
lowUpper unit of the rear house is described vaguely, so bedroom count and legal status are unclear. Listing says: a 1 bedroom lower unit and a 2+ bedroom upper · AI review

Opportunities

Current rents are below market. Rents can reset to market at renewal. Based on: Listing rents vs. our market estimate: Unit 3: 2 bed / 1 bath $700 vs $1,225
The extra vacant lot has a fenced garden and play area. Ask whether it is a separate parcel that could be sold or built on. Listing says: plus an additional vacant lot · AI review
The 2-bed's actual rent is well below our estimate, so there is upside. Verify the tenant, lease and renewal timing. Based on: data: rent_estimate · AI review
No rent cap in Duluth, so rents can move to market at renewal. Based on: data: underwriting.rent_rule · AI review
Shared basement laundry in the rear house is a plus for tenants and possibly a small income source. Listing says: This house has shared laundry facilities in the basement. · AI review

Questions for the agent

Can I see the rent roll, leases and trailing-12 expenses for all units?
Is the front lower unit approved for residential use today, and what permits would a conversion need?
Are all four units on the Duluth rental license? What is the licensed unit count?
Are the two houses and the vacant lot separate parcels? What are the taxes on each?
What is the heat source for each house, and who pays the bills? How old are the boilers and the roof?
Why is the 2-bed at $700, and what are the lease terms?

Bottom line

Interesting four-unit setup with a possible extra lot, but the numbers depend on a daycare conversion and rents that aren't verified, so get the paperwork first. AI-assisted summary

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.	$3,754
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$4,580
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$340
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 1911: +1 pt capital reserve	8% / 9%

Price history Realtor.com

On the market since 2026-09-29 (6 days).

Date	Event	Price
2026-09-29	Listed	$449,900

From the listing Listing

Listed as	multi-family
Property tax, 2026	$3,754
County	St. Louis County
Parcel number	010-1270-02690, 010-1270-02680

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.