413 Hawthorne St E

Duplex · 2 units: 2 bed / 1.5 bath ×2 unit split estimated · 2,356 sq ft

Overpriced

30 photos

Photos courtesy of CENTURY 21 Atwood, via Realtor.com.

Asking price: $224,900
Monthly cash flow: −$361
Estimated rent: $1,900/mo
Break-even price: $157,118

Adjust the numbers See the full breakdown

From the listing

Great investment opportunity with this duplex located near Northside Park and Hawthorne Elementary School. This property is located near two municipal parks, Fountain Lake, a pedestrian trail that extends around the majority of the lake, a public golf course and has a large backyard area. This duplex includes a shared double garage for each tenant, shared laundry facilities in the basement and separate electric meters for billing purposes. The water/ sewer and natural gas utilities are split between each tenant unit. Each level has newer separate forced air furnaces and air-conditioning for separate temperature control. The main level apartment has a three-season porch and the second level a private deck. Schedule your appointment today to tour this investment property.

Listing courtesy of CENTURY 21 Atwood (Craig Hoium). Description from Realtor.com, MLS #7104190. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is a 1955 duplex in Albert Lea asking $224,900, and the numbers don't work at that price. Our estimate is about $950 per unit, and cash flow at ask comes out around -$361 a month with a 4.5% cap rate. Break-even is near $157K, so the seller is far above what these rents support. The photos show original-era kitchens and baths, so you'd be buying a refresh project, not a turnkey rental. It has been listed 89 days, so there is room to negotiate. I'd only tour it at a price far closer to break-even, and I'd get actual rents, leases and tax figures first.

Things to consider

Price is far above break-even At ask, cash flow is about -$361 a month and the cap rate is 4.5%. The price would need to drop roughly $68K for the deal to break even.
Rents are unverified The listing gives no rents, so our $950 per unit estimate is the only income number. Real leases could be higher or lower.
Dated interiors need a refresh budget Original-looking kitchens, baths and finishes will cost money to update before rents can climb. Plan for turnover work.From photo 6
Shared utilities and shared spaces Split water/sewer and gas, plus a shared garage and laundry, can cause disputes and uneven bills. Check how it works today.Listing says: “The water/ sewer and natural gas utilities are split between each tenant unit.”
Taxes and unit count are unverified No county parcel match means the tax bill, which is a big expense, is a guess. Verify it before relying on the cash flow figures.
Separate furnaces and meters help cost control Tenants pay their own electric and temperature control, which lowers owner expenses.Listing says: “Each level has newer separate forced air furnaces and air-conditioning for separate temperature control.”

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

doneNewer separate forced air furnaces and air-conditioning on each levelListing says: Each level has newer separate forced air furnaces and air-conditioning for separate temperature control.

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: $224,900
Cash to close: $51,727
Price per unit: $112,450
GRM: 9.9

Each month

Cash flow: −$361/mo
Cash-on-cash: −8.4%
Cap rate: 4.5%
DSCR: 0.70×

Break-even

Price that breaks even: $157,118
Rent that breaks even: $2,363/mo

Long run

Year 30: property vs stocks: $582K vs $578K
Cash flow turns positive: year 16

Monthly

Monthly breakdown

Rent	$1,900
Vacancy (6%)	−$114
Collected	$1,786
Property tax Listing	−$217
Insurance Estimate	−$199
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$152
Capital reserve (8% of rent)	−$152
Net operating income	$836
Mortgage (principal + interest)	−$1,197
Cash flow	−$361
Principal paid down (equity, not cash)	$152

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$582,163

Your equity when you sell: $513,138
Rental profits, invested at 7%: $69,025

Same money in stocks$578,314

Cash to close, invested at 7%: $393,759
Monthly shortfalls, invested: $184,555

The building comes out $3,849 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 $582K, stocks $578K. 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 $950/mo · range $925–$950 · 6 rentals within 1.75 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
1516/1520 E Hawthorne St, Albert Lea	$895	2 / 1	—	0.7 mi	2025-09-06	Apartment
139 E William St, Albert Lea	$880	2 / 1	894	0.7 mi	2025-05-12	Apartment
133 W William St Apt 201, Albert Lea	$865	2 / 1	788	0.8 mi	—	Apartment
200 E 3rd St Unit Downstairs, Albert Lea	$850	2 / 1	800	1.2 mi	2026-10-04	Duplex triplex
1215 Saint John Ave Apt 3, Albert Lea	$950	2 / 1	769	1.5 mi	—	Duplex triplex
1302 Madison Ave, Albert Lea	$895	2 / 1	870	1.6 mi	2026-06-24	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

mediumCouldn't match this address to a county parcel record, so taxes and unit count are unverified. Public record: County parcels: no match for 413 HAWTHORNE ST E
mediumAsking is $67,782 above the price where cash flow breaks even ($157,118) at the default scenario. Based on: Derived: price $224,900 vs. break-even $157,118
mediumWater/sewer and gas are split between tenants. Without submeters, the split is hard to enforce. Ask how it works and who is on the accounts. Listing says: The water/ sewer and natural gas utilities are split between each tenant unit. · AI review
mediumListing gives no rents, lease status or occupancy, so income can't be checked. Based on: data: rent_estimate · AI review
lowShared garage and shared basement laundry between units add friction and make it harder to keep tenants separate. Listing says: This duplex includes a shared double garage for each tenant, shared laundry facilities in the basement · AI review

Opportunities

Separate electric meters and separate furnaces and A/C mean tenants carry their own power and temperature costs. Listing says: separate electric meters for billing purposes · AI review
Three-season porch and private deck are selling points for tenants. Listing says: The main level apartment has a three-season porch and the second level a private deck. · AI review
89 days on market gives room to negotiate toward break-even. Based on: data: listing.days_on_market · AI review

Questions for the agent

What are the current rents, lease terms and tenant payment history for each unit?
How are water/sewer and gas split in practice? Are there submeters or separate accounts?
What are the real property taxes? Can you confirm the unit count and rental license?
How old are the roof, furnaces, water heaters and electrical panels?
Is the double garage assigned per unit, and who handles the shared laundry?
Why has it sat 89 days, and has the price been reduced?

Bottom line

Dated but functional duplex priced about $68K above where our numbers break even, so it only works at a much lower price. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Listinglisting, tax year 2026. 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.	$2,600
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,389
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 2026-07-08 (89 days); down $5,000 (2.2%) from the first ask of $229,900; last sold for $110,000 on 2000-06-22; listed for rent at $850/mo on 2025-12-23.

Date	Event	Price
2026-09-08	Price changed	$224,900
2026-07-08	Listed	$229,900
2025-12-24	Removed	—
2025-12-23	Listed for rent	$850/mo
2023-01-27	Removed	—
2023-01-18	Listed for rent	$850/mo
2019-03-11	Removed	$89,900
2018-12-11	Removed	$89,900
2018-12-10	Removed	$89,900
2013-08-23	Removed	$89,900
2013-04-22	Listed	$89,900
2000-06-22	Sold	$110,000
1999-12-27	Listed	$105,000

From the listing Listing

Listed as	duplex up and down
Property tax, 2026	$2,600
County	Freeborn
Parcel number	341950110

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 Albert Lea on rental licensing before you buy.