Minneapolis › Central

3605 S 3rd Ave

Triplex · 3 units: 3 bed / 1 bath and 2 bed / 1 bath ×2 unit split estimated · 2,570 sq ft

Minneapolis, MN · Central · View the listing ↗

Cash flows

21 photos

Photos courtesy of Summit Realty, via Realtor.com.

Asking price: $389,900
Monthly cash flow: $651
Estimated rent: $5,025/mo
Break-even price: $512,124

Adjust the numbers See the full breakdown

From the listing

Public Remarks: Fantastic investment opportunity in the desirable Central neighborhood of South Minneapolis! This classic triplex blends timeless character with solid income potential and long-term upside. The property features updated mechanicals, newer vinyl thermopane windows, and three income-producing units currently rented at $1,575, $1,590, and $1,000 per month. Located in a highly walkable and bike-friendly area near transit, parks, restaurants, and the Midtown Greenway, this property offers strong tenant appeal and convenient access to everything South Minneapolis has to offer. Ideal for an owner-occupant seeking supplemental rental income or an investor looking for a stable multifamily asset in the urban core. Opportunity to convert currently rented nonconforming unit to conforming through the addition of an exterior staircase. Additional financial upside available through the City of Minneapolis 4D Affordable Housing Incentive Program, which can reduce property taxes by up to 40% annually if qualifying units are enrolled. Strong cash flow, classic charm, and future upside make this a compelling opportunity in one of Minneapolis' most connected neighborhoods.

Listing courtesy of Summit Realty (Dave Berglund). Description from Realtor.com, MLS #7074993. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

Stated rents total $5,000 a month on a $389,900 ask, and our model shows about $631 a month of cash flow at 20% down with a 8.3% cap rate. That is decent, and it breaks even at roughly $509K, so the price is well below break-even if the rents are real. The big question is the 'nonconforming' unit: the listing admits one rented unit is not legal as-is, and the $1,000 rent likely belongs to it. Photos show a dated, lived-in interior with an attic-level upper unit, and no basement, mechanical or panel shots. Get the rent roll, leases and the rental license details first, then decide on a showing. It looks worth seeing only if the nonconforming unit can be fixed cheaply.

Things to consider

Nonconforming unit risk The city could require egress work or stop the unit being rented. That would cut income and the $1,000 rent may not be bankable.Listing says: “Opportunity to convert currently rented nonconforming unit to conforming through the addition of an exterior staircase.”
Cash flow at asking price About $631 a month at 20% down leaves some room for repairs, vacancy or higher rates. Break-even is about $509K, so surprises can be absorbed, but losing the nonconforming unit's rent would eat much of the margin.
Stated rents are near or below our estimates Two units at about $1,550 are roughly in line with our 2-bed estimates, and the 3-bed estimate is $1,900. Little upside is likely without renovation.
Seller basis is low and the property has sat a long time The seller paid $166,500 in 2014 and the listing is 123 days old, which suggests room to negotiate.
4D incentive may help but has strings A tax cut up to 40% would help cash flow, but it needs rent and income restrictions on enrolled units. Confirm eligibility and the trade-off.Listing says: “which can reduce property taxes by up to 40% annually if qualifying units are enrolled”
Dated interiors and Tier 2 license Worn carpet, original-looking kitchens and a license flagged for more violations point to a likely repair budget and more inspections.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.

Rents the listing states

Unit a: $1,575Listing says: three income-producing units currently rented at $1,575, $1,590, and $1,000 per month
Unit b: $1,590Listing says: three income-producing units currently rented at $1,575, $1,590, and $1,000 per month
Unit c (likely nonconforming): $1,000Listing says: three income-producing units currently rented at $1,575, $1,590, and $1,000 per month

Condition and repairs

doneUpdated mechanicalsListing says: The property features updated mechanicals, newer vinyl thermopane windows
doneNewer vinyl thermopane windowsListing says: The property features updated mechanicals, newer vinyl thermopane windows
neededExterior staircase needed to make one unit conformingListing says: Opportunity to convert currently rented nonconforming unit to conforming through the addition of an exterior staircase

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: $389,900
Cash to close: $89,677
Price per unit: $129,967
GRM: 6.5

Each month

Cash flow: $651/mo
Cash-on-cash: 8.7%
Cap rate: 8.4%
DSCR: 1.31×

Break-even

Price that breaks even: $512,124
Rent that breaks even: $4,180/mo

Long run

Year 30: property vs stocks: $2.67M vs $683K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$5,025
Vacancy (6%)	−$302
Collected	$4,724
Property tax Public record	−$522
Insurance Estimate	−$306
Water, sewer, trash Estimate	−$255
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$402
Capital reserve (9% of rent)	−$452
Net operating income	$2,726
Mortgage (principal + interest)	−$2,075
Cash flow	$651
Principal paid down (equity, not cash)	$264

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$2,671,867

Your equity when you sell: $889,607
Rental profits, invested at 7%: $1,782,260

Same money in stocks$682,644

Cash to close, invested at 7%: $682,644

The building comes out $1,989,223 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 $2.67M, stocks $683K. 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.

3 bed estimate $1,875/mo · range $1,675–$2,200 · 10 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3336 4th Ave S Apt 4, Minneapolis	$1,595	3 / 1	1,100	0.3 mi	—	Apartment
3336 4th Ave S Apt 2, Minneapolis	$1,795	3 / 1	1,100	0.3 mi	—	Apartment
3208 Blaisdell Ave Apt 3, Minneapolis	$1,750	3 / 1	1,220	0.6 mi	2024-07-22	Apartment
2821 1st Ave S, Minneapolis	$1,600	3 / 1	1,743	1.0 mi	2026-06-17	Apartment
705 W 31st St, Minneapolis	$1,775	3 / 1	725	1.0 mi	2025-03-22	Apartment
3520 Dupont Level Ave S Unit Lower, Minneapolis	$2,595	3 / 1	1,600	1.0 mi	2026-05-31	Duplex triplex
4429 Nicollet Ave, Minneapolis	$1,999	3 / 1	1,050	1.1 mi	2026-01-22	Apartment
200 E 27th St, Minneapolis	$1,835	3 / 1	1,400	1.1 mi	2026-09-15	Apartment
711 W 28th St, Minneapolis	$1,595	3 / 1	1,000	1.3 mi	—	Apartment
3229 Hennepin Ave S, Minneapolis	$2,395	3 / 1	1,970	1.3 mi	2022-08-11	Apartment

2 bed estimate $1,575/mo · range $1,350–$1,725 · 15 rentals within 0.75 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3515 2nd Ave S Unit 303, Minneapolis	$1,695	2 / 1	750	0.1 mi	2026-09-07	Apartment
3503 2nd Ave S, Minneapolis	$1,639	2 / 1	686	0.1 mi	2025-08-04	Apartment
3429 2nd Ave S Fl 1, Minneapolis	$1,400	2 / 1	850	0.2 mi	—	Apartment
3718 Oakland Ave S, Minneapolis	$1,150	2 / 1	700	0.3 mi	2026-01-03	Apartment
3648 Blaisdell Ave Apt 2, Minneapolis	$1,595	2 / —	1,200	0.4 mi	2026-09-16	Duplex triplex
3329 Nicollet Ave, Minneapolis	$1,675	2 / 1	700	0.4 mi	2026-09-10	Apartment
3549 Columbus Ave S, Minneapolis	$1,250	2 / 1	800	0.4 mi	—	Apartment
3715 Columbus Ave S Apt 4, Minneapolis	$1,495	2 / 1	920	0.5 mi	—	Apartment
3715 Columbus Ave S Apt 2, Minneapolis	$1,395	2 / 1	920	0.5 mi	—	Apartment
3212 1st Ave S, Minneapolis	$1,800	2 / 1	900	0.5 mi	2026-09-08	Duplex triplex

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

highOne rented unit is nonconforming; it may be an illegal unit and could be forced out of use or need costly egress work Listing says: Opportunity to convert currently rented nonconforming unit to conforming through the addition of an exterior staircase. · AI review
mediumRental license Tier 2: the city has flagged more violations than typical; expect more frequent inspections and repair orders. Public record: Minneapolis Active Rental Licenses: 3605 3RD AVE S, grade/tier=Tier 2, status=Active
mediumDescription gives no lease terms, rent roll or expenses Listing says: three income-producing units currently rented at $1,575, $1,590, and $1,000 per month · AI review
lowHighway about 170 m away (I-35W), so noise and air quality may affect tenants and rents Based on: data: highway · AI review

Opportunities

The seller bought for $166,500 in Jan 2014, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 0302824440050: last sale 2014-01-01, $166,500
Long time on market: room to negotiate. Based on: Listing data: 126 days on market
4D program could cut property taxes up to 40% if qualifying units are enrolled; it requires rent restrictions, so check the math Listing says: City of Minneapolis 4D Affordable Housing Incentive Program, which can reduce property taxes by up to 40% annually · AI review
Legalizing the third unit could raise its value and reduce risk Listing says: Opportunity to convert currently rented nonconforming unit to conforming through the addition of an exterior staircase. · AI review
Taxes of about $6,265 are already non-homestead, so there is no tax surprise after purchase Based on: data: county.homestead · AI review

Questions for the agent

Which unit is nonconforming, and what exactly does the city say is needed to make it legal? Any quotes for the staircase?
Can I see the rent roll, leases and 12 months of expenses?
What does the Tier 2 rental license history show? Any open violations or orders?
How old are the boiler or furnace, water heater and electrical panels? Are the utilities separately metered?
Why has it sat 123 days, and has the price changed?
Do tenants pay their own utilities, and who pays water, trash and heat?

Bottom line

Rents are decent and the price is well under break-even, but a nonconforming unit and a Tier 2 license make this a verify-everything property. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordHennepin County record, current payable year (non-homestead)	$6,265
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$3,677
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. built 1910: +1 pt capital reserve	8% / 9%

Price history Realtor.com

On the market since 2026-06-01 (126 days); down $30,000 (7.1%) from the first ask of $419,900; last sold for $169,900 on 2014-02-14.

Date	Event	Price
2026-08-26	Price changed	$389,900
2026-06-30	Price changed	$409,900
2026-06-25	Relisted	$419,900
2026-06-24	Removed	—
2026-06-01	Listed	$419,900
2014-02-14	Sold	$169,900
2013-10-24	Price changed	$169,900
2013-10-10	Price changed	$195,000
2013-10-09	Removed	$199,000
2013-08-26	Listed	$199,000
2009-09-10	Sold	$25,000
2009-06-18	Price changed	$20,900
2009-06-17	Relisted	$24,900
2009-05-30	Removed	$24,900
2009-05-13	Listed	$20,900
2009-02-26	Removed	$58,500
2008-12-22	Listed	$58,500
2000-02-24	Sold public record	$47,400
1998-09-30	Sold public record	$80,000

County record Public record

Recorded as	triplex
Living units	3
Year built	1910
Market value (2026)	$329,900
Property tax	$6,265
Special assessments	none
Homestead	no
Last sale	2014-01-01 · $166,500

Source: Hennepin County parcel records.

City rental license

CHOWN: 3 unit(s), Tier 2, status active, renews 2027-03-01.

Nearest highway

I 35W, about 168 m away.

Crime in Central

411 incidents in the last 12 months (50 per 1,000 residents), −9% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).