3942 Sheridan Ave S

Fourplex · 4 units: 3 bed / 1 bath and 2 bed / 1 bath ×3 unit split estimated · 4,564 sq ft

Minneapolis, MN · Linden Hills · View the listing ↗

Overpriced

32 photos

Photos, via Realtor.com.

Needs more info before these numbers mean much. The city's rental license covers 3 unit(s); this analysis counts 4.

Asking price: $1,150,000
Monthly cash flow: −$2,317
Estimated rent: $7,525/mo
Break-even price: $714,616

Adjust the numbers See the full breakdown

First look

This is a Linden Hills fourplex asking $1.15M, and the numbers don't work. Our underwriting shows about -$2,317 a month and a 4.0% cap rate at asking, and break-even is near $715K. The listing gives no rents, and three of the four units are furnished short- and long-term rentals, so income is likely volatile and may not be on standard leases. Ask for the rent roll, the short-term rental history and the trailing-12 expenses before anything else. Without a big price cut, I wouldn't spend a showing on it.

Things to consider

Price is far above what the numbers support Our underwriting shows negative cash flow of about $2,317 a month at asking. A buyer would need roughly a $435K price cut to break even.
Income quality is unknown Furnished short-term rentals can bring high gross revenue but have higher vacancy, turnover and licensing risk. Underwrite long-term unfurnished rents instead.Listing says: “Three of the four units are fully furnished long term and short term rentals.”
Licensing and legality of the unit count The city license covers 3 units while we count 4. An unlicensed unit could limit rent, insurance or financing.
Seller has a large cushion The seller bought at $550K in 2004, so they can accept a much lower offer and still profit. That gives you room to negotiate.
Old building with unseen systems A 1908 building with hot-water heat needs boiler, wiring and roof checks. The photos show none of these 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.

Condition and repairs

doneUpdated kitchens and bathroomsListing says: Updated kitchens and bathrooms while keeping the character of the 1920's.

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: $1,150,000
Cash to close: $264,500
Price per unit: $287,500
GRM: 12.7

Each month

Cash flow: −$2,317/mo
Cash-on-cash: −10.5%
Cap rate: 4.0%
DSCR: 0.62×

Break-even

Price that breaks even: $714,616
Rent that breaks even: $10,574/mo

Long run

Year 30: property vs stocks: $2.82M vs $3.41M
Cash flow turns positive: year 19

Monthly

Monthly breakdown

Rent	$7,525
Vacancy (6%)	−$452
Collected	$7,074
Property tax Public record	−$1,081
Insurance Estimate	−$435
Water, sewer, trash Estimate	−$340
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (9% of rent)	−$677
Capital reserve (9% of rent)	−$677
Net operating income	$3,803
Mortgage (principal + interest)	−$6,121
Cash flow	−$2,317
Principal paid down (equity, not cash)	$779

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$2,819,771

Your equity when you sell: $2,623,871
Rental profits, invested at 7%: $195,900

Same money in stocks$3,407,509

Cash to close, invested at 7%: $2,013,441
Monthly shortfalls, invested: $1,394,068

Stocks come out $587,738 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 $2.82M, stocks $3.41M. 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 $2,650/mo · range $2,350–$2,650 · 6 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3807 France Ave S, Minneapolis	$3,800	3 / 1	—	0.8 mi	2025-09-25	Duplex triplex
3520 Dupont Level Ave S Unit Lower, Minneapolis	$2,595	3 / 1	1,600	1.1 mi	2026-05-31	Duplex triplex
3229 Hennepin Ave S, Minneapolis	$2,395	3 / 1	1,970	1.2 mi	2022-08-11	Apartment
5005 Oliver Ave S Unit 2, Minneapolis	$2,850	3 / —	3,864	1.3 mi	2026-10-02	Duplex triplex
1709 Lagoon Ave S, Minneapolis	$1,795	3 / 1	1,140	1.4 mi	2026-09-05	Apartment
2921 Sunset Blvd, Minneapolis	$3,000	3 / 1	2,564	1.5 mi	2026-08-07	Duplex triplex

2 bed estimate $1,625/mo · range $1,425–$2,025 · 24 rentals within 1.5 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
4271 Sheridan Ave S, Minneapolis	$1,495	2 / 1	700	0.4 mi	2024-10-19	Apartment
4312 Linden Hills Blvd, Minneapolis	$1,625	2 / 1	840	0.4 mi	2026-09-03	Apartment
3917 France Aves # 3919, Minneapolis	$1,999	2 / 1	1,000	0.8 mi	—	Duplex triplex
3504 Minikahda Ct, Saint Louis Park	$1,540	2 / 1	680	1.1 mi	2024-04-12	Apartment
3452 Emerson Ave S, Minneapolis	$1,349	2 / 1	950	1.1 mi	2026-09-03	Apartment
3509 Emerson Ave S, Minneapolis	$1,399	2 / 1	950	1.1 mi	2026-09-03	Apartment
4040 W 36th St, Saint Louis Park	$1,695	2 / 1	950	1.1 mi	2026-05-12	Apartment
4005 W 44th St Apt C, Edina	$1,950	2 / 1	1,392	1.1 mi	2026-06-06	Multi family
4320 W 36 1/2 St, Saint Louis Park	$1,250	2 / 1	820	1.1 mi	2024-05-02	Apartment
3430 List Pl, Minneapolis	$2,050	2 / 1.5	1,148	1.2 mi	2026-08-17	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

highThe city's rental license covers 3 unit(s); this analysis counts 4. Public record: Minneapolis Active Rental Licenses: 2600 40TH ST W, units=3
highFurnished short-term rentals mean volatile, non-standard income that is hard to verify and may not carry over to a long-term investor. Listing says: Three of the four units are fully furnished long term and short term rentals. · AI review
mediumAsking is $435,384 above the price where cash flow breaks even ($714,616) at the default scenario. Based on: Derived: price $1,150,000 vs. break-even $714,616
mediumSeller is also the listing agent, so there is no independent check on the rent and expense figures. Listing says: Agent is owner. · AI review
mediumFourth unit may not be licensed. The city shows 3 licensed units plus a short-term license, and the 'Apartment Converted' record doesn't list unit count. Based on: data: county.dwelling_type · AI review
mediumTaxes are already $12,971 on a non-homestead basis and could be reassessed higher after a sale at this price. Based on: data: county.tax · AI review

Opportunities

The seller bought for $550,000 in Jan 2004, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 0802824110054: last sale 2004-01-01, $550,000
Strong location near two lakes and the Linden Hills shops supports demand and rent growth. Minneapolis has no rent cap. Listing says: 2 blocks from Lake Harriet, 2 blocks from Lake Bde Maka Ska and walking distances to downtown Linden Hills. · AI review
Kitchens and baths look updated, so near-term capex may be modest. Based on: photo 10 · AI review
Outdoor space on three units supports rent premiums or short-term rental appeal. Listing says: 3 of the 4 units have amazing decks, some screened in · AI review

Questions for the agent

Can you provide the current rent roll with lease terms, plus 12 months of short-term rental income and occupancy?
Which units are on long-term leases, and what are they paying unfurnished?
Is the fourth unit licensed? Why do city records show 3 units plus a short-term license?
What are the trailing-12 expenses: heat (hot-water boiler), water, trash, insurance and repairs?
How old are the roof, boiler, electrical panels and water heaters?
Does the price include the furniture, and would you consider a price near $750K?

Bottom line

Nice building in a great location, but at $1.15M it loses about $2,300 a month and only works far closer to $715K. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordHennepin County record, current payable year (non-homestead)	$12,971
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$5,215
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid	$340
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 reserve; 9 bedrooms: +1 pt repairs for wear	9% / 9%

Price history Realtor.com

On the market since 2026-09-09 (26 days); last sold for $550,000 on 2004-03-09.

Date	Event	Price
2026-09-09	Listed	$1,150,000
2004-03-09	Sold public record	$550,000
1992-12-24	Sold public record	$162,000
1989-02-24	Sold public record	$149,500

County record Public record

Recorded as	apartment converted
Living units	—
Year built	1908
Market value (2026)	$685,700
Property tax	$12,971
Special assessments	none
Homestead	no
Last sale	2004-01-01 · $550,000

Source: Hennepin County parcel records.

City rental license

CHOWNEXMPT: 3 unit(s), Tier 1, status active, renews 2027-03-01.ShrtTrmLic: 1 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

I 35W, about 3022 m away.

Crime in Linden Hills

114 incidents in the last 12 months (14 per 1,000 residents), −21% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).