420 W 5th Ave

Duplex · 2 units: 1 bed / 1 bath ×2 · 1,210 sq ft

Cash flows

29 photos

Photos, via Realtor.com.

Asking price: $257,000
Monthly cash flow: $565
Estimated rent: $3,350/mo
Break-even price: $363,110

Adjust the numbers See the full breakdown

First look

The listing says almost nothing: no rents, no unit breakdown, no heat type, no tax figure. Our estimate puts two 1-bed units at about $1,675 each, which gives roughly $565/month cash flow and a 9% cap at the asking price. That only holds if the taxes are right, and we couldn't match a county parcel, so verify the tax bill and that this is a legal two-unit property first. Photos show a dated, plain interior with a small unit that looks like it may be an add-on or converted space. It has been listed 207 days with a cut, so there is room to negotiate. It is worth a showing only if the agent produces real rents, utility costs and a rental license.

Things to consider

Income is unverified The description has no rents or lease info, so the $565/month cash flow rests on our estimate. Get a rent roll before trusting it.
Taxes and unit count unconfirmed No parcel match means the tax bill, and whether this is a legal duplex, are unknown. A higher investor tax bill would cut cash flow.
Negotiating leverage 207 days on market and a price cut suggest the seller may take less. Our break-even price is well above ask, so there is cushion.Listing says: “Motivated Seller! Price Reduced!”
Dated interiors and unseen systems Kitchens and baths look older and heat appears to be space heaters. Budget for updates and inspect mechanicals.From photo 6
Owner-occupy flexibility Living in one unit while renting the other can improve financing and lower risk.Listing says: “This property has flexibility.”

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.

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: $257,000
Cash to close: $59,110
Price per unit: $128,500
GRM: 6.4

Each month

Cash flow: $565/mo
Cash-on-cash: 11.5%
Cap rate: 9.0%
DSCR: 1.41×

Break-even

Price that breaks even: $363,110
Rent that breaks even: $2,626/mo

Long run

Year 30: property vs stocks: $1.98M vs $450K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$3,350
Vacancy (6%)	−$201
Collected	$3,149
Property tax Listing	−$275
Insurance Estimate	−$175
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$268
Capital reserve (8% of rent)	−$268
Net operating income	$1,933
Mortgage (principal + interest)	−$1,368
Cash flow	$565
Principal paid down (equity, not cash)	$174

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$1,979,405

Your equity when you sell: $586,378
Rental profits, invested at 7%: $1,393,027

Same money in stocks$449,960

Cash to close, invested at 7%: $449,960

The building comes out $1,529,445 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 $1.98M, stocks $450K. 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.

1 bed / 1 bath estimate $1,675/mo · range $1,575–$1,675

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Match
1501 W Hwy, 61, Grand Marais 55604	$1,850	1 / 1	—	0.7 mi	2026-09-16	93%
861 5th Ave W, Grand Marais 55604	$1,455	1 / 1	547	0.4 mi	2025-05-14	86%
801 W 5th St, Grand Marais 55604 off market	$1,258	2 / 1	—	0.2 mi	2026-07-12	84%
801 W 5th St, Unit A12, Grand Marais 55604 off market	$1,511	2 / 1	750	0.2 mi	2025-10-10	81%
1501 W Hwy, 61 # 305, Grand Marais 55604 off market	$1,745	1 / 1	800	0.7 mi	2026-03-14	77%
1501 W Hwy, 61 # 303, Grand Marais 55604 off market	$1,720	1 / 1	800	0.7 mi	2026-03-14	77%
1501 W Hwy, 61 # 205, Grand Marais 55604 off market	$1,700	1 / 1	800	0.7 mi	2026-03-14	77%
1501 W Hwy, 61 # 203, Grand Marais 55604 off market	$1,700	1 / 1	800	0.7 mi	2026-03-14	77%
1501 W Hwy, 61 # 105, Grand Marais 55604 off market	$1,770	1 / 1	800	0.7 mi	2026-03-14	77%
1501 W Hwy, 61 # 309, Grand Marais 55604 off market	$1,695	1 / 1	754	0.7 mi	2026-03-14	76%

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

highNo rents, lease terms or occupancy given, so income is unverified. Our $1,675 per unit is only an estimate. Based on: data: rent_estimate · 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 420 5TH AVE W
mediumHeating looks like wall or space heaters rather than central heat. Check the type, age and who pays. Based on: photo 6 · AI review
mediumUnit count and taxes are unverified, so cash flow could be off. Based on: data: county.tax · AI review

Opportunities

Long time on market: room to negotiate. Based on: Listing data: 207 days on market
Motivated-seller language: room to negotiate. Listing says: "Motivated Seller ! Price Reduced! Are you looking for a"
Owner-occupy one unit and rent the other, which the listing itself pitches. Listing says: Are you looking for a place of your own with rental income on the side? · AI review
Off-street parking for each unit helps in a small town. Listing says: Each unit has off street parking available. · AI review

Questions for the agent

What are the current rents, lease terms and tenant move-in dates for each unit?
Is this a legal two-unit property, and is there a city rental license?
How is each unit heated and who pays heat, water and electric?
What are the annual taxes, and are there any special assessments?
How old are the roof, wiring, water heater and heat sources?
Why has it sat 207 days, and what was the price history?

Bottom line

Numbers look decent on paper at about 9% cap, but with no rents, no tax data and dated interiors, this needs verification before you spend time on it. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Listinglisting, tax year 2025. 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.	$3,302
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,102
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 2026-03-12 (207 days); down $80,500 (23.9%) from the first ask of $337,500.

Date	Event	Price
2026-09-30	Price changed	$257,000
2026-08-17	Price changed	$259,000
2026-07-25	Price changed	$274,900
2026-07-10	Price changed	$279,900
2026-06-21	Price changed	$284,900
2026-06-04	Price changed	$289,900
2026-05-13	Price changed	$295,000
2026-04-02	Price changed	$329,000
2026-03-12	Listed	$337,500
2010-12-15	Removed	$139,900
2010-10-21	Listed	$139,900

From the listing Listing

Listed as	duplex
Property tax, 2025	$3,302
County	Cook County
Parcel number	80-301-0010

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 Grand Marais on rental licensing before you buy.