220 E 7th St

Fourplex · 4 units: 1 bed / 1 bath ×4 unit split estimated · 2,800 sq ft

Cash flows

31 photos

Photos, via Realtor.com.

Asking price: $249,900
Monthly cash flow: $1,123
Estimated rent: $4,500/mo
Break-even price: $460,881

Adjust the numbers See the full breakdown

From the listing

Exceptional 3 Bedroom 4 Bath 4-Plex located on the corner of 7th Street and James Ave. The fourth unit is a commercial space that is currently a laundry service. It was formally a salon and could be converted back to a salon or another apartment. This property has been rented continuously with a solid rental history. Significant remodeling occurred on the property since it was purchased including new roof, medal siding, electric services, mini-splits, paint and some flooring. The property is licensed through the city and the rent is just under $3000/month. The tenants are responsible for paying their own utilities. There is ample parking on the large gravel parking lot and the 3-stall garage. This turn key property is definitely one to look at.

Description from Realtor.com, MLS #7104298. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is a four-unit metal-sided building where one unit is a commercial salon/laundry space, and the description says "rent is just under $3000/month" for the whole building. That is about $750 per unit, well below our $1,125 per-unit estimate, so the model's $1,123/month cash flow and 11.8% cap rate lean on rents the building isn't collecting and on four residential units that may not exist. The photos show a salon fit-out with no kitchen, and the county record didn't match, so taxes are unverified and could be much higher than assumed. Get the rent roll, the city rental license, and a tax figure before anything else. At 91 days on market it may be worth a showing if the real income holds up, but don't trust the underwriting yet.

Things to consider

Rent doesn't match the underwriting About $3,000 total is roughly $750 per unit versus our $1,125 estimate. Cash flow of $1,123/month depends on rents the building isn't collecting, so rerun the numbers on actual income.Listing says: “the rent is just under $3000/month”
Commercial unit risk A salon or laundry tenant can leave and be hard to replace, and commercial space may affect lending and insurance. Converting it to an apartment would need zoning, egress and likely permits.Listing says: “The fourth unit is a commercial space that is currently a laundry service.”
Taxes and unit count unverified We couldn't match a county parcel, so taxes could be well above what the model assumes. Verify the tax bill, the legal use and the number of units.
Recent updates reduce near-term capital needs A new roof, siding, electrical and mini-splits lower the big-ticket risk, but ask for permits and dates to confirm the work was done properly.Listing says: “including new roof, medal siding, electric services, mini-splits, paint and some flooring”
Price has room to move 91 days on market and weak rents relative to the ask support a lower offer based on actual income.
Interiors are basic and dated in places The kitchens and the back room look low-budget, which limits rent growth without more spending.From photo 10

From the photos

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

Rents the listing states

Whole building (all units combined): $3,000Listing says: the rent is just under $3000/month

Condition and repairs

doneNew roofListing says: including new roof, medal siding, electric services, mini-splits, paint and some flooring
doneMetal sidingListing says: including new roof, medal siding, electric services, mini-splits, paint and some flooring
doneElectric servicesListing says: including new roof, medal siding, electric services, mini-splits, paint and some flooring
doneMini-split heat/ACListing says: including new roof, medal siding, electric services, mini-splits, paint and some flooring
doneSome flooringListing says: including new roof, medal siding, electric services, mini-splits, paint and some flooring

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: $249,900
Cash to close: $57,477
Price per unit: $62,475
GRM: 4.6

Each month

Cash flow: $1,123/mo
Cash-on-cash: 23.4%
Cap rate: 11.8%
DSCR: 1.84×

Break-even

Price that breaks even: $460,881
Rent that breaks even: $3,060/mo

Long run

Year 30: property vs stocks: $2.78M vs $438K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$4,500
Vacancy (6%)	−$270
Collected	$4,230
Property tax Listing	−$299
Insurance Estimate	−$358
Water, sewer, trash Estimate	−$340
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$360
Capital reserve (8% of rent)	−$360
Net operating income	$2,453
Mortgage (principal + interest)	−$1,330
Cash flow	$1,123
Principal paid down (equity, not cash)	$169

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$2,780,800

Your equity when you sell: $570,179
Rental profits, invested at 7%: $2,210,621

Same money in stocks$437,530

Cash to close, invested at 7%: $437,530

The building comes out $2,343,270 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 $2.78M, stocks $438K. 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.

1 bed / 1 bath estimate $1,125/mo · range $1,025–$1,200

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Match
826 S 4th Ave, Apt 306, Albert Lea 56007 off market	$800	1 / 1	—	1.0 mi	2025-12-03	92%
524 Park [Furnished Ave, Unit 4, Albert Lea 56007 off market	$900	1 / 1	1,200	1.3 mi	2025-01-02	84%
902 S 4th Ave, Apt 203, Albert Lea 56007 off market	$900	2 / 1	—	1.0 mi	2026-07-31	83%
820 S 4th Ave, Apt 302, Albert Lea 56007 off market	$850	2 / 1	—	1.0 mi	2026-07-14	83%
1516/1520 E Hawthorne St, Albert Lea 56007	$895	2 / 1	—	1.7 mi	2025-09-06	82%
1516/1520 E Hawthorne Ave, Albert Lea 56007 off market	$950	2 / 1	—	1.7 mi	2025-09-06	82%
133 W William St, Albert Lea 56007	$1,000	1 / 1	750	0.8 mi	2026-10-05	81%
820 S 4th Ave, Apt 304, Albert Lea 56007 off market	$750	1 / 1	672	1.0 mi	2023-11-23	80%
127 Elizabeth Ave, Albert Lea 56007	$725	1 / 1	600	0.9 mi	2026-08-21	80%
207 4th St, # E14, Albert Lea 56007 off market	$1,000	1 / 1	—	0.3 mi	2026-02-15	79%

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

highOne of four units is commercial, so it isn't a residential rental. Financing, insurance and the vacancy risk differ, and our residential rent estimate for it doesn't apply. Listing says: The fourth unit is a commercial space that is currently a laundry service. · AI review
highTotal rent of about $3,000 across four units is far below the $4,500 our estimate implies. Underwriting cash flow looks overstated. Listing says: the rent is just under $3000/month · 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 220 7TH ST E
mediumThe listing says 3 bedrooms, but facts say 4 beds/4 baths, and the unit layout is unclear. Confirm how many legal residential units and bedrooms exist. Listing says: Exceptional 3 Bedroom 4 Bath 4-Plex · AI review
mediumSalon space photos show a bare, unfinished back room with exposed block wall, loose wiring and painted cabinets. Converting it to an apartment would take real work. Based on: photo 5 · AI review
mediumDescription claims the license is current, but facts have no rental license record. Verify what the city actually licenses (3 units or 4, residential vs. commercial). Listing says: The property is licensed through the city · AI review

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 91 days on market
Convert the commercial space back to a salon or another apartment, if zoning and egress allow. Listing says: could be converted back to a salon or another apartment · AI review
Tenants pay their own utilities, so owner expenses are lower. Listing says: The tenants are responsible for paying their own utilities. · AI review
Shared laundry room with coin-style machines could add some ancillary income if it isn't already counted. Based on: photo 6 · AI review

Questions for the agent

Can I see the rent roll with each unit's rent, lease dates and deposits? Is the roughly $3,000 the residential units only, or does it include the commercial tenant?
Who is the commercial tenant, what is the lease, and what are the terms?
What does the city rental license cover, and is the commercial space zoned to become an apartment?
What are the actual property taxes, and are there any special assessments?
Is the heat all mini-splits, and who pays for the common laundry and water/sewer?
What are the permits and dates for the roof, siding and electrical work?

Bottom line

Interesting mixed-use building at a price that could work, but the roughly $3,000 in rent doesn't back the underwriting, and the commercial unit changes the risk, so get the rent roll before spending more time. 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.	$3,584
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$4,300
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. base rate	8% / 8%

Price history Realtor.com

On the market since 2026-07-06 (91 days); last sold for $195,000 on 2023-05-03.

Date	Event	Price
2026-07-06	Listed	$249,900
2023-05-03	Sold	$195,000
2019-11-22	Sold public record	$58,386
2010-05-28	Sold public record	$95,000
2002-08-30	Sold	$69,900
2002-05-20	Listed	$69,900

From the listing Listing

Listed as	four plex
Property tax, 2026	$3,584
County	Freeborn
Parcel number	340490110

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.