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403 2nd St

Fourplex · 4 units: 2 bed / 1 bath ×4 unit split estimated · 3,833 sq ft

Austin, MN · View the listing ↗

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Photos courtesy of NRT-Minnesota (CB Burnet), via Realtor.com.

Asking price
$310,000
4 units · $78K per unit
Monthly cash flow
−$301
at 20% down, 7%
Estimated rent
$3,100/mo
medium confidence
Break-even price
$253,424
where cash flow hits $0

Adjust the numbers See the full breakdown

First look

The listing describes five rentable units plus an attic, but our facts count four, and the rent estimate used four 2-beds at $775 each. That mismatch matters. Stated rents total $3,100 a month, yet the owner pays all utilities on a 1900 building with radiator heat, and our underwriting at asking shows about -$301 a month with a 5.2% cap rate. The break-even price is about $253K against a $310K ask, and it has sat 276 days. Before a showing, confirm the legal unit count and rental license, get the rent roll with leases and 12 months of utility bills, and look at the roof and boiler. The attic unit is a maybe, not income.

Things to consider

  1. Owner pays all utilities Heat and water for five units can take a large share of $3,100 in rent. Ask for actual bills before trusting any cash flow.Listing says: “Owner currently pays all utilities.”
  2. Price is above what the numbers support Our underwriting shows negative monthly cash flow at the ask, and break-even is about $57K lower.
  3. Unit count and legality are unverified The listing says five units, but we couldn't match a county record. Unlicensed units can't be counted on for income or insurance.
  4. Rents are low and in line with the area Stated rents of $650 are below our $775 mid estimate for a 2-bed, so there is some upside. Rents in a small market may not rise quickly.Listing says: “Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month.”
  5. Old building with dated interiors Original-looking kitchens and radiator heat mean updates and turnover costs. Budget reserves for a 1900 building.From photo 6
  6. Attic unit is speculative It needs city approval and build-out cost, so treat it as upside only.Listing says: “subject to city approval”

From the photos

Listing photo 2
1 of 7Check

Roof shingles on the main roof appear fairly recent and uniform, though a patch of bare sheathing is visible below the upper gable at the back.

Listing photo 6
2 of 7Concern

Kitchen has dated painted cabinets, vinyl flooring and an older electric range. It appears original or very old and cosmetic only.

Listing photo 4
3 of 7Concern

Cast-iron radiators in several units point to boiler heat, likely owner-paid. Rust or corrosion is visible on one radiator.

Listing photo 5
4 of 7Plus

Hardwood floors in the bedrooms and living areas look serviceable and in decent shape.

Listing photo 8
5 of 7Check

A ground-floor unit has a different build: suspended tile ceiling, baseboard heat and a wall-mounted unit. Heat type differs from the upper floors.

Listing photo 1
6 of 7Check

Exterior is vinyl or aluminum siding on a stone and brick base. A stair and a door at the side suggest multiple entrances. A utility pole and wires sit close to the building.

Listing photo 9
7 of 7Check

No photos of the boiler, electrical panel, basement or bathrooms, so major systems are unseen.

Based on 9 of the listing photos. Photos can hide as much as they show; an inspection is the real answer.

Rents the listing states

  • Unit 1: $650Listing says: Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month.
  • Unit 2: $650Listing says: Unit 2: 1 Bed / 1 Bath / Bonus Room / $650 month.
  • Unit 3: $650Listing says: Unit 3: 1 Bed / 1 Bath / Bonus Room / $650 month.
  • Unit 4: $650Listing says: Unit 4: 1 Bed / 1 Bath / Bonus Room / $650 month.
  • Unit 5: $750Listing says: Unit 5: 2 Bed / 1 Bath / Bonus Room / $750 month.

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

Down payment %
Offer $
Management
Interest rate %
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
$310,000
Cash to close
$71,300
Price per unit
$77,500
GRM
8.3

Each month

Cash flow
−$301/mo
Cash-on-cash
−5.1%
Cap rate
5.2%
DSCR
0.82×

Break-even

Price that breaks even
$253,424
Rent that breaks even
$3,496/mo

Long run

Year 30: property vs stocks
$943K vs $643K
Cash flow turns positive
year 9

Monthly

Monthly breakdown

Rent$3,100
Vacancy (6%)−$186
Collected$2,914
Property tax Listing−$189
Insurance Estimate−$418
Water, sewer, trash Estimate−$340
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (9% of rent)−$279
Capital reserve (9% of rent)−$279
Net operating income$1,349
Mortgage (principal + interest)−$1,650
Cash flow−$301
Principal paid down (equity, not cash)$210

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$942,863
Your equity when you sell
$707,304

Sells for $752,451 (value up 3% a year), minus 6% selling cost ($45,147). Rent paid down $248,000 of loan.

Rental profits, invested at 7%
$235,559

$143,545 of cash flow over 30 years, plus what it earned invested.

Same money in stocks$643,232
Cash to close, invested at 7%
$542,754

$71,300 put into an index fund instead of the down payment and closing costs.

Monthly shortfalls, invested
$100,478

$16,390 you'd have paid in while the building lost money, invested instead.

The building comes out $299,631 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 $943K, stocks $643K. The property wins.

Comparable rentals

Nearby rentals RentCast matched to each unit type, as of 2026-10-05. The estimate above is RentCast's, weighted toward the closest matches.

2 bed / 1 bath estimate $775/mo · range $575–$950

AddressRentBd / BaSq ftDistanceListedMatch
605 Main St N, Apt 7, Austin 55912 off market $695 2 / 1 — 0.6 mi 2026-07-27 93%
814 9th Ave Sw Apt A, Austin 55912 $750 2 / 1 — 0.8 mi 2026-10-05 93%
814 9th Ave SW, Austin 55912 off market $750 2 / 1 — 0.8 mi 2026-01-17 93%
614-620 10th St SE, Austin 55912 off market $850 2 / 1 — 1.0 mi 2026-04-17 92%
601 1/2 13th St SE, Austin 55912 $1,050 2 / 1 — 1.1 mi 2026-10-05 92%
1407-1409 5th St SE, Austin 55912 off market $1,000 2 / 1 — 1.1 mi 2026-02-11 92%
1407 5th St SE, Unit A, Austin 55912 off market $900 2 / 1 — 1.2 mi 2026-05-29 92%
403 4th Ave NW, Austin 55912 off market $625 1 / 1 — 0.1 mi 2026-01-29 84%
108 2nd St SW, Apt 6, Austin 55912 off market $675 1 / 1 — 0.2 mi 2026-06-26 84%
108 2nd St SW, Apt 5, Austin 55912 off market $300 1 / 1 — 0.2 mi 2026-03-19 84%

On the maps, this property and comparable rentals. Comparable rentals and rent estimate: RentCast. Rents are asking rents from listings; check them against the actual leases.

Red flags and opportunities

Watch for

  • highOwner pays all utilities on a large 1900 building with five units. This is a big expense that eats into $650 rents. Listing says: Owner currently pays all utilities. · AI review
  • highUnit count is unverified. Listing claims five units plus an attic, but our data shows four and no county record matched. Extra units may be unpermitted. Based on: data: listing.unit_count · AI review
  • highUnderwriting at asking price is negative cash flow, and break-even price is well under the ask. Based on: data: underwriting.cash_flow_monthly · 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 403 2ND ST
  • mediumAttic 'Unit 6' needs city approval, so it can't be counted on. Listing says: subject to city approval · AI review
  • mediumRents and lease status are not documented. There is no mention of lease terms or occupancy. Listing says: strong in-place cash flow · AI review

Opportunities

  • Long time on market: room to negotiate. Based on: Listing data: 276 days on market
  • Attic could become another unit or expanded living space if the city allows it. Listing says: already prepared for finishing and presents excellent future upside · AI review
  • Long time on market gives room to negotiate toward the break-even price. Based on: data: listing.days_on_market · AI review
  • Separate metering or tenant-paid utilities could add real income. Listing says: Owner currently pays all utilities. · AI review

Questions for the agent

  • How many units are legally licensed with the city, and is there a current rental license?
  • Can I see the rent roll, leases, and 12 months of utility bills?
  • Which units are occupied now, and are any month-to-month?
  • What type and age is the heating system, and how many boilers or meters are there?
  • What is the roof age, and what is the status of the attic permit with the city?
  • Why has it been listed 276 days, and have there been price cuts or offers?

Bottom line

Rents of $650 against owner-paid utilities and a $310K ask don't work at today's rates; it only pencils well below about $253K with verified units. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Listinglisting, tax year 2024. The tax the listing states. If the seller lives there it may be at the lower homestead rate; an investor owner pays the non-homestead rate, often 20–40% more on the owner's unit.$2,272
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$5,014
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 1900: +1 pt capital reserve; 8 bedrooms: +1 pt repairs for wear9% / 9%

Price history Realtor.com

On the market since 2026-01-02 (276 days); last sold for $217,500 on 2008-12-23; listed for rent at $525/mo on 2017-11-27.

DateEventPrice
Removed$310,000
Removed$310,000
Removed$310,000
Removed$310,000
Listed$310,000
Removed—
Listed$310,000
Removed—
Listed for rent$525/mo
Sold public record$217,500
Sold$86,000
Listed$69,900
Sold$95,893
Listed$105,900

From the listing Listing

Listed asfour plex
Property tax, 2024$2,272
CountyMower
Parcel number341851030

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 Austin on rental licensing before you buy.