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1535 2nd St NE

Duplex · 2 units: 2 bed / 1 bath and 1 bed / 1 bath unit split estimated · 910 sq ft

Rochester, MN · View the listing ↗

Cash flows
10 photos
1535 2nd St NE, photo 1
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1535 2nd St NE, photo 2
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1535 2nd St NE, photo 3
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1535 2nd St NE, photo 4
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1535 2nd St NE, photo 5
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1535 2nd St NE, photo 6
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1535 2nd St NE, photo 7
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1535 2nd St NE, photo 8
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1535 2nd St NE, photo 9
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1535 2nd St NE, photo 10
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Photos courtesy of Danielson Realty Group, LLC, via Realtor.com.

Asking price
$150,000
2 units · $75K per unit
Monthly cash flow
$358
at 20% down, 7%
Estimated rent
$2,300/mo
medium confidence
Break-even price
$217,265
where cash flow hits $0

Adjust the numbers See the full breakdown

First look

This is a 910 sq ft duplex at $150K, and our numbers show about $358/mo cash flow and a 9.3% cap rate at asking. That looks too good for a house this small, so check the assumptions before getting excited. The tiny footprint, the sold-as-is wording and the interior photos all point to a real rehab, and nothing in the listing shows current rents or tenants. Taxes and unit count are unverified because we couldn't match a county parcel. First confirm that it is a legal two-unit with a rental license, then get taxes, heat setup and a rehab budget. Worth a showing only if the unit count checks out and you can price in a full refresh.

Things to consider

  1. Confirm it is a legal duplex Taxes and unit count couldn't be matched to a county record. If it's really a single family, rent and value drop sharply and licensing could block the second unit.
  2. Budget a full rehab Kitchens, baths and floors look dated and the property is vacant and unfinished. Rehab cost can erase the paper cash flow.From photo 3
  3. Modeled cash flow depends on estimated rents No actual rents are given. The 2-bed and 1-bed estimates assume renovated, legal units; the efficiency kitchen upstairs may lower the upper rent.
  4. Small units may limit tenant appeal and rent At 910 sq ft total, both units are tiny, so expect rents at the low end of the estimate range.

From the photos

Listing photo 3
1 of 8Concern

Kitchen has dated painted cabinets, an old freestanding gas range and parquet flooring; it appears original and needs a full refresh.

Listing photo 5
2 of 8Concern

Bathroom has an older tub surround, a pedestal sink, dark painted wood flooring and a worn look; it appears dated and needs updating.

Listing photo 7
3 of 8Concern

Upper-level room has a stained, scuffed hardwood floor, a drop ceiling and exposed wiring; it is unfinished and vacant, with construction supplies visible.

Listing photo 9
4 of 8Concern

Bedroom has dark painted floors, wood paneling and a textured ceiling; it looks dated and cosmetic work is needed.

Listing photo 2
5 of 8Check

Back roof shingles look weathered and the siding is dirty, with debris in the yard; roof age is unknown.

Listing photo 2
6 of 8Check

Exterior shows vinyl or aluminum siding, a modest yard and a front entry; there appears to be an exterior stair at the rear, which could mean a separate upper entrance.

Listing photo 8
7 of 8Plus

Hardwood floors under the wear appear salvageable and a bedroom has plenty of natural light.

Listing photo 1
8 of 8Check

No photos of the furnace, water heater, electrical panel, basement or the upper-unit kitchen, so mechanicals and unit separation can't be judged.

Based on 9 of the listing photos. Photos can hide as much as they show; an inspection is the real answer.

Condition and repairs

  • neededRehab/renovation suggested by the listingListing says: For an investor ready to renovate, it may also offer a rehab and flip opportunity.

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

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
$150,000
Cash to close
$34,500
Price per unit
$75,000
GRM
5.4

Each month

Cash flow
$358/mo
Cash-on-cash
12.5%
Cap rate
9.3%
DSCR
1.45×

Break-even

Price that breaks even
$217,265
Rent that breaks even
$1,816/mo

Long run

Year 30: property vs stocks
$1.19M vs $263K
Cash flow turns positive
year 1

Monthly

Monthly breakdown

Rent$2,300
Vacancy (6%)−$138
Collected$2,162
Property tax Listing−$147
Insurance Estimate−$169
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (10% of rent)−$230
Capital reserve (10% of rent)−$230
Net operating income$1,156
Mortgage (principal + interest)−$798
Cash flow$358
Principal paid down (equity, not cash)$102

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$1,185,769
Your equity when you sell
$342,244

Sells for $364,089 (value up 3% a year), minus 6% selling cost ($21,845). Rent paid down $120,000 of loan.

Rental profits, invested at 7%
$843,525

$346,270 of cash flow over 30 years, plus what it earned invested.

Same money in stocks$262,623
Cash to close, invested at 7%
$262,623

$34,500 put into an index fund instead of the down payment and closing costs.

The building comes out $923,146 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 $1.19M, stocks $263K. The property wins.

Comparable rentals

Nearby rentals RentCast matched to each unit type, as of 2026-10-05. The estimate above is RentCast's, weighted toward the closest matches.

2 bed / 1 bath estimate $1,250/mo · range $1,100–$1,425

AddressRentBd / BaSq ftDistanceListedMatch
723 E Center St, Unit 1, Rochester 55904 off market $1,100 2 / 1 900 0.6 mi 2026-08-22 99%
875 21st Ave SE, Rochester 55904 $1,340 2 / 1 900 0.9 mi 2025-03-07 98%
2251 26th St NE, Rochester 55906 $1,360 2 / 1 912 1.8 mi 2025-04-10 97%
824 W Center St, Apt 1, Rochester 55902 off market $1,400 2 / 1 900 1.7 mi 2026-09-14 97%
211 Broadway Ave S, Rochester 55904 off market $1,595 2 / 1 870 1.1 mi 2026-04-28 97%
714 N Broadway Ave, Rochester 55906 off market $1,300 2 / 1 960 1.1 mi 2026-03-02 97%
403 8 1/2 Ave NW, Rochester 55901 off market $1,250 2 / 1 950 1.7 mi 2025-08-11 96%
403 8 1/2 Ave NW, Unit Down, Rochester 55901 off market $1,250 2 / 1 950 1.7 mi 2026-07-14 96%
1620 8 1/2 St SE, Apt B, Rochester 55904 off market $1,100 2 / 1 795 0.8 mi 2026-06-17 96%
1609 10th St SE, Rochester 55904 $945 2 / 1 800 1.0 mi 2026-06-15 96%

1 bed / 1 bath estimate $1,050/mo · range $800–$1,325

AddressRentBd / BaSq ftDistanceListedMatch
115 16th St NE, Unit C, Rochester 55906 $1,650 1 / 1 920 1.3 mi 2026-10-05 98%
400 1st Ave NW, Rochester 55901 $1,297 1 / 1 940 1.1 mi 2025-04-08 98%
538 4th Ave NW, Rochester 55901 off market $1,400 1 / 1 940 1.3 mi 2026-04-09 97%
725 7th Ave SE, Apt 2, Rochester 55904 $825 1 / 1 838 1.0 mi 2026-10-05 97%
123 11th Ave SE, Apt 5, Rochester 55904 $885 1 / 1 800 0.5 mi 2026-10-05 96%
1933 3rd Ave NW, Rochester 55901 $1,000 1 / 1 750 1.5 mi 2026-09-05 94%
1209.5 13th Ave NE, Rochester 55906 off market $950 1 / 1 — 0.7 mi 2026-04-02 93%
504 E Center St, Apt 2, Rochester 55904 off market $800 1 / 1 675 0.8 mi 2026-05-11 93%
815 9th Ave SE, Apt 6, Rochester 55904 $900 1 / 1 — 0.9 mi 2026-10-02 93%
815 9th Ave SE, Apt 1, Rochester 55904 off market $900 1 / 1 — 0.9 mi 2026-08-26 93%

On the maps, this property and comparable rentals. Comparable rentals and rent estimate: RentCast. Rents are asking rents from listings; check them against the actual leases.

Red flags and opportunities

Watch for

  • highUnit count and legality are unverified; the layout may be a converted single-family Based on: data: rule_flags · 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 1535 2ND ST NE
  • mediumSold as-is: the seller won't fix what the inspection finds. Price that in. Listing says: "street and adjacent to beautiful East Park. "Sold As-Is ". Call today to schedule a showing!"
  • medium910 sq ft total for three bedrooms and two baths across two units means very small units and a cramped upper unit Based on: data: listing.sqft · AI review
  • mediumUpper unit has only an efficiency kitchen, which can limit rent and tenant pool, and the listing offers a single-family conversion as an option, hinting that the duplex setup may be informal Listing says: The upper level unit features one bedroom and one full bathroom with an efficiency kitchen. · AI review
  • mediumNo rents, tenants or occupancy stated; the unit looks vacant and unfinished in photos Based on: photo 8 · AI review

Opportunities

  • Low entry price with modeled cash flow well above typical for the price; rents may support it after a refresh Based on: data: underwriting.cash_flow_monthly · AI review
  • No rent cap in Rochester, so rents can rise to market after renovation Based on: data: underwriting.rent_rule · AI review
  • Flexible exit: rent both units, flip, or convert to single family Listing says: Or, bring your vision and make it your primary residence, with the potential to convert to single family. · AI review

Questions for the agent

  • Is this a licensed, legal two-unit in Rochester, and can you provide the rental license or zoning confirmation?
  • Does each unit have its own entrance, kitchen, meters and heat?
  • What are the annual taxes and any special assessments?
  • Is the property vacant, and what did it last rent for?
  • What are the ages of the roof, furnace, water heater and electrical panel?
  • Why is it sold as-is, and is there an estate or bank seller?

Bottom line

The numbers look strong on paper at $150K, but it's a tiny, as-is, unfinished house with an unverified unit count, so confirm legality and rehab cost 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.$1,760
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,028
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. "as-is" in the description: +2 pts each10% / 10%

Price history Realtor.com

On the market since 2026-09-30 (5 days); last sold for $55,000 on 2005-01-11.

DateEventPrice
Listed$150,000
Sold public record$55,000
Removed$78,500
Listed$78,500

From the listing Listing

Listed asduplex up and down
Property tax, 2026$1,760
CountyOlmsted
Parcel number743641014795

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 Rochester on rental licensing before you buy.