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221 N 3rd Ave

Duplex · 2 units: 1 bed / 1 bath and 2 bed / 1 bath · 1,990 sq ft

Albert Lea, MN · View the listing ↗

Cash flows
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Photos, via Realtor.com.

Asking price
$169,900
2 units · $85K per unit
Monthly cash flow
$115
at 20% down, 7%
Estimated rent
$2,050/mo
high confidence
Break-even price
$191,466
where cash flow hits $0

Adjust the numbers See the full breakdown

First look

This is a 1-bed over 2-bed duplex in Albert Lea at $169,900, and our numbers show about $115/month of cash flow at the asking price with a 7.2% cap rate. That is thin, and it rests on estimated rents of roughly $1,025 per unit, since the listing gives no actual rents. Taxes are unverified because we couldn't match the county parcel, so pull the real tax bill first. The photos show a new-looking boiler but dated ceilings, an older kitchen and radiators, so ask for the rent roll, lease terms and utility costs. 207 days on market gives you room to offer below ask. It's worth a showing only if the actual rents hold up and taxes come in near what we assumed.

Things to consider

  1. Income is estimated, not documented Cash flow of $115/month depends on our $1,025 rent estimates. Actual rents could be higher or lower and swing the result a lot.
  2. Thin margin at asking price A 7.2% cap rate with little monthly cash flow leaves no room for vacancy or repairs at today's rates. A lower price is needed for a cushion.
  3. Taxes are unverified The parcel didn't match, so the tax figure could be off. An investor may pay a higher non-homestead bill.
  4. Heat setup could shift costs One boiler usually means the owner pays heat unless units are separately metered. That would cut into the cash flow.From photo 10
  5. Old 1908 building with cosmetic updates Dated kitchen and ceilings suggest deferred upgrades. Have the wiring, plumbing and foundation inspected.
  6. Long listing time gives leverage At 207 days, the seller may accept a lower offer.

From the photos

Listing photo 1
1 of 7Plus

Exterior is white siding with an asphalt shingle roof that appears in decent shape; the front porch and steps look newly built or rebuilt.

Listing photo 2
2 of 7Check

Radiator heat is visible in the living room, so the building appears to be on a hot-water system.

Listing photo 5
3 of 7Concern

Kitchen has a basic white electric range and older cabinets and counters, though the flooring looks newer; the finishes appear dated.

Listing photo 6
4 of 7Plus

Bathroom appears updated with a new vanity top and newer flooring, but it is a basic cosmetic refresh.

Listing photo 10
5 of 7Plus

Basement shows a wall-hung high-efficiency boiler that appears new, with older iron piping, brick walls and a bare concrete floor around it.

Listing photo 9
6 of 7Check

Upper unit ceilings look like drop-tile or older textured ceilings, and the bedroom is accessed through a curtained opening, which makes the bedroom count worth confirming.

Listing photo 10
7 of 7Check

No photos of the electrical panel, roof close-up, garage or basement walls, so those systems are unseen.

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

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
$169,900
Cash to close
$39,077
Price per unit
$84,950
GRM
6.9

Each month

Cash flow
$115/mo
Cash-on-cash
3.5%
Cap rate
7.2%
DSCR
1.13×

Break-even

Price that breaks even
$191,466
Rent that breaks even
$1,901/mo

Long run

Year 30: property vs stocks
$896K vs $297K
Cash flow turns positive
year 1

Monthly

Monthly breakdown

Rent$2,050
Vacancy (6%)−$123
Collected$1,927
Property tax Listing−$119
Insurance Estimate−$211
Water, sewer, trash Estimate−$170
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$164
Capital reserve (9% of rent)−$184
Net operating income$1,019
Mortgage (principal + interest)−$904
Cash flow$115
Principal paid down (equity, not cash)$115

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$896,253
Your equity when you sell
$387,648

Sells for $412,392 (value up 3% a year), minus 6% selling cost ($24,744). Rent paid down $135,920 of loan.

Rental profits, invested at 7%
$508,604

$229,077 of cash flow over 30 years, plus what it earned invested.

Same money in stocks$297,464
Cash to close, invested at 7%
$297,464

$39,077 put into an index fund instead of the down payment and closing costs.

The building comes out $598,789 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 $896K, stocks $297K. The property wins.

Comparable rentals

Nearby rentals RentCast matched to each unit type, as of 2026-10-06. The estimate above is RentCast's, weighted toward the closest matches.

1 bed / 1 bath estimate $1,025/mo · range $925–$1,100

AddressRentBd / BaSq ftDistanceListedMatch
826 S 4th Ave, Apt 306, Albert Lea 56007 off market $800 1 / 1 — 0.6 mi 2025-12-03 93%
524 Park [Furnished Ave, Unit 4, Albert Lea 56007 off market $900 1 / 1 1,200 0.5 mi 2025-01-02 90%
133 W William St, Albert Lea 56007 $1,000 1 / 1 750 0.7 mi 2026-10-06 84%
1704 Sunset St, Apt 9, Albert Lea 56007 off market $800 1 / 1 700 0.6 mi 2025-11-19 84%
820 S 4th Ave, Apt 302, Albert Lea 56007 off market $850 2 / 1 — 0.6 mi 2026-07-14 84%
902 S 4th Ave, Apt 203, Albert Lea 56007 off market $900 2 / 1 — 0.7 mi 2026-07-31 83%
820 S 4th Ave, Apt 304, Albert Lea 56007 off market $750 1 / 1 672 0.6 mi 2023-11-23 83%
127 Elizabeth Ave, Albert Lea 56007 $725 1 / 1 600 0.9 mi 2026-08-21 82%
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%

2 bed / 1 bath estimate $1,025/mo · range $975–$1,075

AddressRentBd / BaSq ftDistanceListedMatch
820 S 4th Ave, Apt 302, Albert Lea 56007 off market $850 2 / 1 — 0.6 mi 2026-07-14 93%
902 S 4th Ave, Apt 203, Albert Lea 56007 off market $900 2 / 1 — 0.7 mi 2026-07-31 93%
1516/1520 E Hawthorne St, Albert Lea 56007 $895 2 / 1 — 1.7 mi 2025-09-06 91%
1516/1520 E Hawthorne Ave, Albert Lea 56007 off market $950 2 / 1 — 1.7 mi 2025-09-06 91%
204 E Front St, Albert Lea 56007 off market $925 2 / 1 941 1.0 mi 2026-05-15 86%
139 E William St, Albert Lea 56007 $880 2 / 1 894 0.8 mi 2025-05-12 86%
1302 Madison Ave, Albert Lea 56007 $895 2 / 1 870 1.1 mi 2026-06-24 85%
133 W William St, Apt 201, Albert Lea 56007 $865 2 / 1 788 0.7 mi 2026-10-06 85%
133 W William St, Apt 301, Albert Lea 56007 off market $865 2 / 1 788 0.7 mi 2026-07-24 85%
826 S 4th Ave, Apt 306, Albert Lea 56007 off market $800 1 / 1 — 0.6 mi 2025-12-03 83%

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

  • highNo rents, lease terms or occupancy stated, so income is entirely our estimate Based on: data: rent_estimate · 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 221 3RD AVE N
  • mediumTaxes and unit count unverified against county records Based on: data: county.tax · AI review
  • mediumSingle shared boiler heat appears to serve both units, so heat may be an owner cost Based on: photo 10 · AI review
  • mediumCash flow is thin at asking, leaving little cushion for repairs or vacancy Based on: data: underwriting.cash_flow_monthly · AI review

Opportunities

  • Long time on market: room to negotiate. Based on: Listing data: 207 days on market
  • Break-even price is above ask, so a modest discount improves returns Based on: data: underwriting.break_even_price · AI review
  • Corner lot with garage and separate entrances works for owner-occupant house-hacking Listing says: Detached 2 stall garage. · AI review

Questions for the agent

  • What are the current rents, lease end dates and are any tenants month-to-month?
  • Who pays heat, water, sewer and trash, and is there one boiler or separate systems?
  • How old are the roof, the new-looking boiler and the electrical panel?
  • What are the actual annual property taxes and any special assessments?
  • Why has it sat 207 days, and have there been price cuts or offers?
  • Is the main level a legal 1-bedroom, and does the city require a rental license?

Bottom line

A plain Albert Lea duplex with thin cash flow at asking, no rents given and a long time on market, so negotiate and verify the rents and taxes first. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Listinglisting, tax year 2025. 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.$1,426
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$2,527
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 1908: +1 pt capital reserve8% / 9%

Price history Realtor.com

On the market since 2026-03-12 (207 days); last sold for $115,000 on 2022-05-31.

DateEventPrice
Relisted$169,900
Removed$169,900
Listed$169,900
Sold$115,000
Listed$115,000
Removed$44,900
Sold$32,500
Price changed$44,900
Price changed$52,500
Listed$57,500
Listed$44,900
Listed$44,900
Sold public record$79,000
Sold public record$77,540

From the listing Listing

Listed asduplex up and down
Property tax, 2025$1,426
CountyFreeborn
Parcel number340077190

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.