Minneapolis › Whittier

2541 3rd Ave S

Duplex · 2 units: 3 bed / 1.5 bath ×2 unit split estimated · 3,260 sq ft

Minneapolis, MN · Whittier · View the listing ↗

Overpriced

28 photos

Photos, via Realtor.com.

Asking price: $499,900
Monthly cash flow: −$990
Estimated rent: $3,750/mo
Break-even price: $313,827

Adjust the numbers See the full breakdown

From the listing

Fully leased brick duplex in the heart of Whittier, directly across from the Minneapolis Institute of Art and MCAD. Both units are 3 bedrooms and rented through 2027 - $4,240/month in place, with tenants paying their own gas and electric. Solid 1900 masonry construction with the details buyers hunt for: original woodwork, hardwood floors, clawfoot tub, two fireplaces and a wide covered front porch. Updated kitchens with newer cabinets, counters and appliances, plus newer windows. The layout gives each unit far more room than a typical duplex. Unit 1 takes the front of the main level and the entire 2nd floor (3BR/1BA, approx. 2,000 sf). Unit 2 has its own rear entrance, the back of the main level and the entire 3rd floor (3BR/2BA). Boiler heat, full unfinished basement with common laundry and abundant storage, and a 2-car detached garage. 3,260 finished sq ft on a 50x128 lot. Minutes to Eat Street, downtown and I-35W. Potential to add a third unit in the basement - concept sketch available, not city-approved. Buyers to verify all measurements.

Description from Realtor.com, MLS #7148074. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

The in-place rents look strong: $4,240/month for two 3-beds is about $2,120 each, well above our $1,875 estimate. That is a big gap, so verify it with leases and deposits. Even so, our numbers show about -$990/month and a 4.0% cap at the $499,900 ask, with break-even near $313,827. It sells for less than the $513,000 paid in 2022, but taxes of about $8,970 on a non-homestead bill and boiler heat keep it tight. Pull the leases, tenant payment history and boiler details first. If rents are real, a showing could be worthwhile only with a much lower price.

Things to consider

Price is far above what cash flow supports Our model shows about -$990/month and break-even near $313,827, so the ask is roughly 60% above that. Even at the stated rents, expect to need a large discount or heavy cash down.
Stated rents are well above our estimate $2,120 per unit versus our $1,875 mid means the income depends on these leases being accurate and surviving to 2027. Verify with leases and bank deposits.Listing says: “Both units are 3 bedrooms and rented through 2027 - $4,240/month in place”
Taxes are a heavy cost The $8,970 non-homestead bill takes a big share of income, and values could be reassessed after a sale.
Owner-paid heat is likely One boiler usually means the owner pays gas for both units, which cuts net income unless leases say otherwise.Listing says: “Boiler heat, full unfinished basement with common laundry and abundant storage”
Basement unit is speculative Not city-approved, so give it no value in the price until zoning, egress and licensing are confirmed.Listing says: “Potential to add a third unit in the basement - concept sketch available, not city-approved.”
Highway noise and age of building Being close to I-35W may weigh on rents, and a 1900 building needs a full inspection of systems.

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

Both units combined: $4,240 (lease)Listing says: Both units are 3 bedrooms and rented through 2027 - $4,240/month in place

Condition and repairs

doneUpdated kitchens with newer cabinets, counters and appliancesListing says: Updated kitchens with newer cabinets, counters and appliances, plus newer windows.
doneNewer windowsListing says: Updated kitchens with newer cabinets, counters and appliances, plus newer windows.

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: $499,900
Cash to close: $114,977
Price per unit: $249,950
GRM: 11.1

Each month

Cash flow: −$990/mo
Cash-on-cash: −10.3%
Cap rate: 4.0%
DSCR: 0.63×

Break-even

Price that breaks even: $313,827
Rent that breaks even: $5,036/mo

Long run

Year 30: property vs stocks: $1.21M vs $1.48M
Cash flow turns positive: year 20

Monthly

Monthly breakdown

Rent	$3,750
Vacancy (6%)	−$225
Collected	$3,525
Property tax Public record	−$747
Insurance Estimate	−$240
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$300
Capital reserve (9% of rent)	−$338
Net operating income	$1,670
Mortgage (principal + interest)	−$2,661
Cash flow	−$990
Principal paid down (equity, not cash)	$339

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$1,213,858

Your equity when you sell: $1,140,586
Rental profits, invested at 7%: $73,273

Same money in stocks$1,478,376

Cash to close, invested at 7%: $875,234
Monthly shortfalls, invested: $603,142

Stocks come out $264,518 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 $1.21M, stocks $1.48M. Stocks win.

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.

3 bed estimate $1,875/mo · range $1,725–$2,175 · 9 rentals within 0.75 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
200 E 27th St, Minneapolis	$1,835	3 / 1	1,400	0.1 mi	2026-09-15	Apartment
2821 1st Ave S, Minneapolis	$1,600	3 / 1	1,743	0.4 mi	2026-06-17	Apartment
2550 Pillsbury Ave S, Minneapolis	$1,950	3 / 2	2,000	0.5 mi	2026-07-10	Apartment
912 E 25th St Apt 2, Minneapolis	$1,695	3 / 1	1,014	0.6 mi	—	Apartment
912 E 25th St Apt 3, Minneapolis	$1,675	3 / 1	1,014	0.6 mi	—	Apartment
2407 Elliot Upper Ave Unit Elliot, Minneapolis	$2,300	3 / 1	2,304	0.6 mi	2025-03-15	Duplex triplex
2415 Harriet Ave, Minneapolis	$1,695	3 / 1	1,010	0.7 mi	2026-08-24	Multi family
2200 Harriet Ave S, Minneapolis	$1,850	3 / 1	—	0.7 mi	2026-03-03	Apartment
2305 Garfield Ave Unit 201, Minneapolis	$2,300	3 / 1	970	0.7 mi	2022-05-23	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

mediumAbout 141 m from I 35W: traffic noise usually costs $50–100/month in rent. Based on: OpenStreetMap: nearest motorway (I 35W) at 141 m
mediumAsking is $186,073 above the price where cash flow breaks even ($313,827) at the default scenario. Based on: Derived: price $499,900 vs. break-even $313,827
mediumBasement third unit is only a sketch, not approved Listing says: concept sketch available, not city-approved · AI review
mediumSingle boiler likely means owner pays heat, which the stated tenant-pays utilities do not cover Listing says: Boiler heat, full unfinished basement with common laundry and abundant storage · AI review
mediumNon-homestead tax is a large drag on income at this price Based on: data: county.tax · AI review
lowUnit 1 is listed at about 2,000 sf with only 1 bath, while Unit 2 has 2 baths over 3 bedrooms Listing says: Unit 1 takes the front of the main level and the entire 2nd floor (3BR/1BA, approx. 2,000 sf). · AI review

Opportunities

No rent cap in Minneapolis, so rents can follow the market at renewal Based on: data: underwriting.rent_rule · AI review
Large units and in-place rents above our estimate Listing says: The layout gives each unit far more room than a typical duplex. · AI review
Possible third unit in the basement, if permitted Listing says: Potential to add a third unit in the basement - concept sketch available, not city-approved. · AI review

Questions for the agent

Can I see both leases, rent amounts per unit, and the payment history?
Who pays heat, and is it one boiler? What is the annual gas cost and the boiler's age?
What is the age and condition of the roof, electrical panel and wiring?
Is the lease through 2027 for both units, and are deposits held?
What would the basement unit need to be legal, and has the city been consulted?
Why is the price below the 2022 sale of $513,000, and any offers so far?

Bottom line

Rents in place look strong, but at $499,900 the numbers lose money each month, so it only works at a much lower price. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordHennepin County record, current payable year (non-homestead)	$8,970
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,877
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 1900: +1 pt capital reserve	8% / 9%

Price history Realtor.com

On the market since 2026-06-28 (99 days, relisted 1×); down $89,100 (15.1%) from the first ask of $589,000; last sold for $513,000 on 2022-07-06.

Date	Event	Price
2026-09-22	Listed	$499,900
2026-06-28	Removed	$589,000
2022-07-06	Sold public record	$513,000
2022-05-31	Sold	$513,000
2022-04-04	Listed	$549,900
2020-02-20	Sold public record	$500,000
2020-01-17	Sold	$500,000
2019-11-11	Price changed	$519,000
2019-10-11	Price changed	$549,000
2019-10-03	Listed	$579,000
2016-04-23	Sold	$349,900
2016-01-12	Listed	$349,900
2015-10-05	Removed	$399,000
2015-05-04	Listed	$399,000

County record Public record

Recorded as	duplex
Living units	2
Year built	1900
Market value (2026)	$472,300
Property tax	$8,970
Special assessments	none
Homestead	no
Last sale	2022-05-01 · $513,000

Source: Hennepin County parcel records.

City rental license

CHOWN: 2 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

I 35W, about 141 m away.

Crime in Whittier

1,136 incidents in the last 12 months (76 per 1,000 residents), +1% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).