226 3rd Ave S

Triplex · 3 units: 2 bed / 1 bath ×2 and 3 bed / 1 bath · 3,560 sq ft

Overpriced

39 photos

Photos courtesy of Premier Real Estate Services, via Realtor.com.

Asking price: $319,900
Monthly cash flow: −$454
Estimated rent: $3,000/mo
Break-even price: $234,511

Adjust the numbers See the full breakdown

From the listing

House Hack your way into real estate investing or expand your portfolio with this well-maintained triplex offering immediate income and future upside! Featuring two main-floor 2BR units and a remodeled 3BR lower-level apartment. The north main-floor 2BR unit is leased beginning 7/31 at $1,000/month, with tenant paying heat/gas, electric, and garbage. Two month-to-month leases provide flexibility for a new owner to adjust rental strategy over time, maximize income potential, or transition a unit for owner occupancy. Current rents for the month to month units $1050 & $975 plus utilities. Located on a corner lot with vinyl siding, steel roof, and a 1999 garage addition featuring three dedicated stalls with shared interior access. Tenants pay electric, garbage, and cable/internet. Conveniently located just 15 minutes south of Hutchinson with quick Hwy. 212 access to the SW Metro. Turnkey investment opportunity with immediate rental income and long-term potential!

Listing courtesy of Premier Real Estate Services (Maria Oman). Description from Realtor.com, MLS #7046112. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is a three-unit building in Brownton, a small town, asking $319,900 after 184 days on the market. Our numbers show about -$454 a month at the ask with 20% down, a 4.7% cap rate, and a break-even price near $234,500. That leaves roughly $85K of room, so only a big cut makes this work. The description is muddled on rents and utilities: it says the tenant pays heat, gas, electric and garbage in one place, then says tenants pay electric, garbage and cable in another. Stated rents of $1,000, $1,050 and $975 are all near or above our 2-bed mid of $925, and the 3-bed lower unit has no stated rent. Confirm which unit is which, get the rent roll and the tax bill, and check the heat setup (photos show baseboard hot water). Worth a showing only if the seller will come down toward break-even.

Things to consider

Price is far above what the numbers support Our underwriting shows negative cash flow at the ask and a break-even price about $85K lower. Only a large cut works.
Rent roll is incomplete and utilities are unclear The 3BR lower unit has no stated rent, and the heat and utility responsibilities conflict. That swings cash flow by hundreds a month.Listing says: “Tenants pay electric, garbage, and cable/internet.”
Month-to-month tenants are a turnover risk Two of three units can leave on short notice, so budget for vacancy and make-ready costs soon after closing.Listing says: “Two month-to-month leases provide flexibility for a new owner”
Taxes and unit count are unverified Small-town tax bills can be higher for investors, and the missing parcel match means we used estimates.
House-hack angle may lower financing costs Owner-occupying one unit can allow low-down-payment financing and improve the personal math, though it doesn't fix the price.Listing says: “House Hack your way into real estate investing”

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

North main-floor 2br: $1,000 (lease)Listing says: The north main-floor 2BR unit is leased beginning 7/31 at $1,000/month
Month-to-month unit a: $1,050 (month-to-month)Listing says: Current rents for the month to month units $1050 & $975 plus utilities.
Month-to-month unit b: $975 (month-to-month)Listing says: Current rents for the month to month units $1050 & $975 plus utilities.

Condition and repairs

doneLower-level 3BR apartment remodeledListing says: a remodeled 3BR lower-level apartment
doneSteel roofListing says: vinyl siding, steel roof, and a 1999 garage addition

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: $319,900
Cash to close: $73,577
Price per unit: $106,633
GRM: 8.9

Each month

Cash flow: −$454/mo
Cash-on-cash: −7.4%
Cap rate: 4.7%
DSCR: 0.73×

Break-even

Price that breaks even: $234,511
Rent that breaks even: $3,583/mo

Long run

Year 30: property vs stocks: $854K vs $773K
Cash flow turns positive: year 14

Monthly

Monthly breakdown

Rent	$3,000
Vacancy (6%)	−$180
Collected	$2,820
Property tax Listing	−$478
Insurance Estimate	−$299
Water, sewer, trash Estimate	−$255
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$240
Capital reserve (8% of rent)	−$240
Net operating income	$1,248
Mortgage (principal + interest)	−$1,703
Cash flow	−$454
Principal paid down (equity, not cash)	$217

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$853,649

Your equity when you sell: $729,892
Rental profits, invested at 7%: $123,756

Same money in stocks$772,864

Cash to close, invested at 7%: $560,087
Monthly shortfalls, invested: $212,777

The building comes out $80,785 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 $854K, stocks $773K. 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.

2 bed / 1 bath estimate $925/mo · range $825–$1,025

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Match
600 Bowman St, Apt 3, Stewart 55385	$775	2 / 1	—	6.7 mi	2025-06-30	84%
600 Bowman St, Apt 1, Stewart 55385 off market	$725	2 / 1	—	6.7 mi	2024-02-21	84%
565 Jefferson St SE, Apt 10, Hutchinson 55350 off market	$1,050	2 / 1	—	10.8 mi	2026-07-07	78%
11 Glen St NW, Apt 3, Hutchinson 55350 off market	$1,000	2 / 1	—	11.2 mi	2026-07-07	77%
11 Glen St NW, Apt 4, Hutchinson 55350 off market	$950	2 / 1	—	11.2 mi	2026-07-07	77%
11 Glen St NW, Apt 2, Hutchinson 55350 off market	$925	2 / 1	—	11.2 mi	2026-01-21	77%
11 Glen St NW, Apt 1, Hutchinson 55350 off market	$950	2 / 1	—	11.3 mi	2026-04-27	77%
11 Glen St NW, Hutchinson 55350 off market	$1,000	2 / 1	—	11.3 mi	2026-01-21	77%
11 Glen St NW, Apt 8, Hutchinson 55350 off market	$925	2 / 1	—	11.3 mi	2023-11-20	77%
610 6th St W, Unit 11, Winthrop 55396	$775	2 / 1	—	12.8 mi	2024-07-10	75%

3 bed / 1 bath estimate $1,150/mo · range $975–$1,350

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Match
600 Bowman St, Apt 3, Stewart 55385	$775	2 / 1	—	6.7 mi	2025-06-30	74%
600 Bowman St, Apt 1, Stewart 55385 off market	$725	2 / 1	—	6.7 mi	2024-02-21	74%
210 4th Ave S, Brownton 55312	$1,500	3 / 1	1,400	0.1 mi	2026-09-14	71%
565 Jefferson St SE, Apt 10, Hutchinson 55350 off market	$1,050	2 / 1	—	10.8 mi	2026-07-07	68%
11 Glen St NW, Apt 3, Hutchinson 55350 off market	$1,000	2 / 1	—	11.2 mi	2026-07-07	67%
11 Glen St NW, Apt 4, Hutchinson 55350 off market	$950	2 / 1	—	11.2 mi	2026-07-07	67%
11 Glen St NW, Apt 1, Hutchinson 55350 off market	$950	2 / 1	—	11.3 mi	2026-04-27	67%
11 Glen St NW, Apt 2, Hutchinson 55350 off market	$925	2 / 1	—	11.2 mi	2026-01-21	67%
11 Glen St NW, Apt 8, Hutchinson 55350 off market	$925	2 / 1	—	11.3 mi	2023-11-20	67%
11 Glen St NW, Hutchinson 55350 off market	$1,000	2 / 1	—	11.3 mi	2026-01-21	67%

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

highPriced well above the break-even price from our underwriting Based on: data: underwriting.break_even_price · 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 226 3RD AVE S
mediumDescription contradicts itself on who pays which utilities Listing says: Tenants pay electric, garbage, and cable/internet. · AI review
mediumTwo of three units are month-to-month and could turn over soon Listing says: Two month-to-month leases provide flexibility for a new owner · AI review
mediumLower-level unit is below grade with small windows; confirm legal egress Based on: photo 6 · AI review
lowMonth-to-month tenants can leave quickly. Count on turnover soon after closing. Listing says: "with tenant paying heat/gas, electric, and garbage. Two month-to-month leases provide flexibility for a new owner to"

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 184 days on market
Owner-occupy one unit and rent the other two Listing says: transition a unit for owner occupancy · AI review
Three-stall garage with shared interior access could bring garage rent Listing says: 1999 garage addition featuring three dedicated stalls with shared interior access · AI review

Questions for the agent

Which units are the two month-to-month ones, and what is the 3BR lower unit's rent or is it vacant?
Who pays heat, water and sewer in each unit? How many meters and boilers are there?
What are the actual taxes, and is the property assessed as a triplex?
Can I see the rent roll, leases and 12 months of expenses?
Is the lower-level unit permitted with legal egress? Does the city require a rental license?
Why has it sat 184 days, and has the price moved?

Bottom line

Decent-looking triplex with rents near market, but at $319,900 it loses money, so only a price near $235K makes sense. 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.	$5,732
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$3,590
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$255
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 2026-04-04 (184 days); down $15,100 (4.5%) from the first ask of $335,000; last sold for $195,000 on 2023-06-27.

Date	Event	Price
2026-09-11	Price changed	$319,900
2026-07-08	Price changed	$330,000
2026-04-04	Listed	$335,000
2023-06-27	Sold public record	$195,000
2013-05-01	Removed	$194,990
2013-05-01	Removed	$195,000
2005-10-05	Listed	$195,000
2005-05-16	Listed	$194,990

From the listing Listing

Listed as	triplex
Property tax, 2026	$5,732
County	McLeod
Parcel number	160680250

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 Brownton on rental licensing before you buy.