401 1st Ave SE
Pelican Rapids, MN · View the listing ↗
Photos, via Realtor.com.
Needs more info before these numbers mean much. No reliable rent estimate: too few comparable rentals close by, and no RentCast estimate.
No rent estimate yet, so the numbers can't be run. Run it yourself in the calculator →
First look
Pelican Rapids is a small market, and this one is priced at $289,500 for a 3-unit with a '10% cap rate' claim but no rents, taxes or expenses to back it up. That cap rate is the seller's number, so treat it as marketing until you see a rent roll and trailing-12 expenses. The photos show dated 1959 finishes, with wood paneling, original-style cabinets and carpet. Units look livable but not renovated, despite the word 'updated'. Heat appears to be baseboard electric or hydronic, and the units appear to have forced-air vents too, so find out how each unit is heated and metered. It's been on the market 54 days. I'd only visit once the agent sends actual rents and utility costs, and I'd confirm the county record shows 3 legal units.
Things to consider
- The cap rate claim is unsupported Without rents, taxes and utility costs you can't test the 10% figure. Small-town taxes and owner-paid utilities can cut it sharply.Listing says: “A near 10% cap rate makes this property a great addition to your investment portfolio.”
- Rents and rent roll unknown Nothing in the listing states current rents or leases, and we have no rent estimates for this area. Income can't be underwritten yet.
- Cosmetic condition looks dated Paneling, carpet and older cabinets and baths will need a refresh to compete for rents, and turnover costs in big units add up.From photo 7
- Unit count and taxes unverified The address didn't match a county parcel, so confirm the legal unit count, tax bill and any assessments before pricing.
- Heating and metering unclear Mixed baseboard and vents suggest multiple systems. If the owner pays heat or shared utilities, cash flow drops.From photo 4
- 54 days on market Time on market gives some room to negotiate, especially if the rents don't support the price.
From the photos
Based on 10 of the listing photos. Photos can hide as much as they show; an inspection is the real answer.
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.
Red flags and opportunities
Watch for
- highThe '10% cap rate' has no rents or expenses behind it, so it is unverified. Listing says: A near 10% cap rate makes this property a great addition to your investment portfolio. · 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 401 1ST AVE SE
- mediumListing says 'updated' but gives no detail on what was updated or when. Listing says: Updated 3 unit Income property located just down from the pool in Pelican Rapids. · AI review
- mediumUnit count and taxes can't be verified from county records. Based on: data: county.living_units · AI review
- lowBedroom counts: 6 beds total in the facts match the description, but the listing says 3 baths with one 'efficiency' that is 600 sq ft with a 1-bed. Confirm the layout is legal and licensed. Listing says: two units upstairs, one being an efficiency · AI review
Opportunities
- Dated finishes such as paneling, original cabinets and carpet leave room to raise rents after a cosmetic refresh, if the market supports it. Based on: photo 7 · AI review
- Large units (1,200 and 1,600 sq ft) can appeal to families in a small town with limited rental stock. Listing says: One 1200 sq.ft Unit downstairs(2 bed 1 bath) · AI review
Questions for the agent
- What are the current rents, lease types and lease end dates for each unit?
- What do taxes, insurance and owner-paid utilities cost per year? How is the 10% cap rate calculated?
- How is each unit heated and metered? Separate electric and gas meters?
- What exactly was updated, and when? Roof, windows, furnace, water heater and electrical panel ages?
- Is the property licensed or registered as a 3-unit rental, and is the lower level legal with egress?
- Why has it sat 54 days, and have there been price changes?
Bottom line
Big units in a small town, but the 10% cap rate is unproven and the finishes are dated, so get the rent roll before spending a Saturday on it. AI-assisted summary
What the records say
Where each number comes from
Price history Realtor.com
On the market since 2026-08-12 (54 days); down $9,000 (3.0%) from the first ask of $298,500; last sold for $212,500 on 2023-07-14.
| Date | Event | Price |
|---|---|---|
| Price changed | $289,500 | |
| Listed | $298,500 | |
| Sold | $212,500 | |
| Removed | — | |
| Removed | — | |
| Relisted | $217,500 | |
| Removed | — | |
| Listed | $217,500 | |
| Listed | $217,500 | |
| Sold public record | $185,000 | |
| Removed | — | |
| Removed | — | |
| Price changed | $184,000 | |
| Listed | $184,900 | |
| Listed | $184,900 | |
| Sold public record | $85,000 |
From the listing Listing
| Listed as | triplex |
| Property tax, 2026 | $3,263 |
| County | Otter Tail |
| Parcel number | 76000990506001 |
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 Pelican Rapids on rental licensing before you buy.