3505 18th Ave S

Duplex · 2 units: 2 bed / 1 bath ×2 unit split estimated · 2,950 sq ft

Minneapolis, MN · Powderhorn Park · View the listing ↗

Overpriced

46 photos

Photos, via Realtor.com.

Asking price: $360,000
Monthly cash flow: −$427
Estimated rent: $3,200/mo
Break-even price: $279,840

Adjust the numbers See the full breakdown

From the listing

An incredible opportunity to own a classic South Minneapolis up-down duplex in one of the city's most iconic neighborhoods! Perfectly situated just behind the legendary Matt's Bar & Grill-home of the original Juicy Lucy-and only a few blocks from Powderhorn Park, this property offers the ideal combination of historic charm, unbeatable location, and outstanding investment potential. Inside, both units showcase the timeless character buyers love, featuring beautiful original woodwork, elegant crown moulding, and separate private entrances for added privacy and convenience. Whether you're looking to owner-occupy or expand your investment portfolio, this duplex offers flexibility and enduring appeal. Outside, improvements include a new roof, a fully fenced backyard, and a three-car detached garage-a rare and valuable feature in the city. The true hidden gem of this property is the exceptional equity-building opportunity to complete the partially finished lower level one-bedroom, one-bath unit (buyer to verify zoning, approvals, and permitting requirements), giving this property THREE rentable units. This property presents an exciting chance to increase income and maximize long-term value. Surrounded by beloved local restaurants, coffee shops, breweries, parks, and everything that makes South Minneapolis one of the city's most vibrant and sought-after communities, this is more than just a duplex-it's an opportunity to invest in location, character, and future potential.

Description from Realtor.com, MLS #7127005. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is a Powderhorn up/down priced at $360K, and at that price it loses about $427 a month in our underwriting with a 5.0% cap rate. Break-even is near $280K, so asking is well above what two ~$1,600 units support. The pitch leans on a third unit that doesn't exist yet: the lower level is only partly finished and needs zoning and permits, so count it as zero income. The 3-car garage and new roof are real pluses, but the stucco and a $2,239 special assessment need checking. Get the rent roll and the roof details before thinking about a showing. At this price it only works as an owner-occupied buy, not a pure rental.

Things to consider

Price is far above what the rents support Cash flow is about -$427/mo at ask and break-even is near $280K. Only an owner-occupant or a big price cut makes this work.
Third unit is speculative Finishing it costs money and needs permits and legal approval. Don't pay for income that doesn't exist yet.Listing says: “buyer to verify zoning, approvals, and permitting requirements”
Heavy tax load and special assessments Investor (non-homestead) taxes plus the assessment cut into already thin cash flow.
Rents are unverified No current rents are stated, so the income side rests on our $1,600 estimates.
Systems and unit interiors are mostly unseen There are no kitchen, mechanical or basement photos, so the real rehab budget is unknown.From photo 7

From the photos

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

Condition and repairs

doneNew roofListing says: improvements include a new roof, a fully fenced backyard
neededLower level one-bed, one-bath unit only partly finished; needs completion, zoning and permitsListing says: complete the partially finished lower level one-bedroom, one-bath unit

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: $360,000
Cash to close: $82,800
Price per unit: $180,000
GRM: 9.4

Each month

Cash flow: −$427/mo
Cash-on-cash: −6.2%
Cap rate: 5.0%
DSCR: 0.78×

Break-even

Price that breaks even: $279,840
Rent that breaks even: $3,747/mo

Long run

Year 30: property vs stocks: $1.04M vs $797K
Cash flow turns positive: year 11

Monthly

Monthly breakdown

Rent	$3,200
Vacancy (6%)	−$192
Collected	$3,008
Property tax Public record	−$565
Insurance Estimate	−$211
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$256
Capital reserve (8% of rent)	−$256
Net operating income	$1,489
Mortgage (principal + interest)	−$1,916
Cash flow	−$427
Principal paid down (equity, not cash)	$244

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$1,040,248

Your equity when you sell: $821,385
Rental profits, invested at 7%: $218,863

Same money in stocks$796,976

Cash to close, invested at 7%: $630,295
Monthly shortfalls, invested: $166,682

The building comes out $243,272 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 $1.04M, stocks $797K. The property wins.

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.

2 bed estimate $1,600/mo · range $1,425–$1,800 · 23 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3725 Cedar Ave S, Minneapolis	$1,349	2 / 1	767	0.3 mi	2026-06-30	Apartment
3140 16th Ave S, Minneapolis	$1,300	2 / 1	800	0.4 mi	2026-10-03	Apartment
3549 Columbus Ave S, Minneapolis	$1,250	2 / 1	800	0.8 mi	—	Apartment
2220 E Lake St, Minneapolis	$1,425	2 / 1	835	0.8 mi	—	Apartment
3715 Columbus Ave S Apt 2, Minneapolis	$1,395	2 / 1	920	0.8 mi	—	Apartment
3715 Columbus Ave S Apt 4, Minneapolis	$1,495	2 / 1	920	0.8 mi	—	Apartment
3718 Oakland Ave S, Minneapolis	$1,150	2 / 1	700	0.9 mi	2026-01-03	Apartment
4112 Chicago Ave S, Minneapolis	$1,499	2 / 1	1,000	1.0 mi	2025-01-31	Apartment
2643 12th Ave S Unit 1, Minneapolis	$1,785	2 / 1	—	1.1 mi	2023-06-08	Apartment
2835 Park Ave, Minneapolis	$1,340	2 / 1	—	1.1 mi	2026-07-17	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

highThird unit is unfinished and unpermitted; its income is speculative and may not be legal Listing says: buyer to verify zoning, approvals, and permitting requirements · AI review
medium$2,239 in special assessments on the current tax bill (often street, sewer or code-enforcement charges). Ask what they're for, whether they continue, and whether the seller pays them off at closing. Public record: Hennepin County parcel 0202824410222: special assessments (current) = $2,239.47
mediumListing gives no rents, lease status or expenses, so no income is verified Based on: data: rent_estimate · AI review
mediumNon-homestead tax of $6,781 is heavy against roughly $2,700/mo estimated rent Based on: data: county.tax · AI review

Opportunities

Finish the lower level for a third rentable unit, if zoning and permits allow Listing says: giving this property THREE rentable units · AI review
No rent cap in Minneapolis, so rents can rise to market after updates Based on: data: underwriting.rent_rule · AI review
Three-car detached garage is rare for the city and could add parking income Listing says: a three-car detached garage-a rare and valuable feature in the city · AI review

Questions for the agent

What are the current rents, lease end dates and deposits for each unit?
What are the special assessments for, and does the seller pay them off at closing?
How old is the roof, who installed it, and is there a warranty or permit?
Has anyone priced or permitted the lower-level unit? Does it have egress and ceiling height?
Is the 3-car garage rented, and what are the trailing-12 expenses and utility costs?
Is the heat one furnace or separate systems, and who pays for it?

Bottom line

Charming duplex, but $360K is about $80K over what the rents support, and the third unit is a hope, not income. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordHennepin County record, current payable year (non-homestead)	$6,781
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,538
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. base rate	8% / 8%

Price history Realtor.com

On the market since 2026-09-20 (15 days).

Date	Event	Price
2026-09-20	Listed	$360,000

County record Public record

Recorded as	duplex
Living units	2
Year built	1927
Market value (2026)	$358,500
Property tax	$6,781
Special assessments	$2,239
Homestead	no
Last sale	—

Source: Hennepin County parcel records.

City rental license

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

Nearest highway

MN 55, about 1132 m away.

Crime in Powderhorn Park

524 incidents in the last 12 months (62 per 1,000 residents), −7% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).