Minneapolis › Hiawatha

4230 39th Ave S

Duplex · 2 units: 3 bed and 1 bed · 2,484 sq ft

Minneapolis, MN · Hiawatha · View the listing ↗

Overpriced

47 photos

Photos, via Realtor.com.

Asking price: $449,000
Monthly cash flow: −$577
Estimated rent: $3,675/mo
Break-even price: $340,587

Adjust the numbers See the full breakdown

From the listing

Charming Minneapolis Duplex - Turn-Key Investment or House-Hack Opportunity Live on-site or add a solid investment property to your portfolio - this versatile 2-unit duplex is move-in ready for its next owner! Recent updates include a new roof, siding, gutters, and a furnace with a new heat exchanger, giving you real peace of mind from day one. The spacious main-floor unit offers abundant living space, including a large kitchen, 3 bedrooms, 2 bathrooms, in-unit laundry, and a finished, livable lower level. The egress-equipped lower level adds flexibility for a family room, additional bedroom, home office, or hobby space, plus generous storage throughout. The second-floor unit features 1 bedroom, 1 bathroom, a private exterior entrance, and a huge walk-in closet/storage area - a comfortable, private layout tenants will love. Outside, the 2.5-car garage includes a fantastic shop space with 220-amp service, an app-controlled garage door opener, and additional off-street parking in the driveway. Tucked into a quiet, tree-lined neighborhood just 5 minutes from Minnehaha Falls, the location offers easy access to parks, recreation, and everything the surrounding area has to offer. Whether you're looking to owner-occupy, house-hack, or expand your rental portfolio, this duplex delivers flexibility and long-term potential.

Description from Realtor.com, MLS #7138053. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This one is priced like a house-hack, not an investment. At $449K, our numbers show about -$597 a month and a 4.8% cap rate, and break-even is near $336.9K. Our rent estimates are $2,050 for the 3-bed and $1,600 for the 1-bed, about $3,650 combined, which can't carry this price at today's rates. The description gives no rents or lease terms, so ask for those first. The floor plan shows a kitchen on the second floor and a basement with a bedroom and bath, and the lower-level bedroom needs verifying. The listing also says new roof and siding, and photos back that up, but get dates and permits. Worth a showing only if you plan to live there and the price comes down hard.

Things to consider

Price far above what rents support Our estimate of about $3,650 combined rent against a $449K price gives negative cash flow near $597 a month. Only a big price cut or owner-occupancy changes that.
Rents and leases are unknown Without a rent roll you can't verify income or whether tenants are month-to-month. Our estimates are only estimates.
Recent exterior and mechanical updates reduce near-term capex A new roof, siding and heat exchanger lower surprise repair risk, but confirm dates and permits.Listing says: “Recent updates include a new roof, siding, gutters, and a furnace with a new heat exchanger”
Interiors look dated Carpet and original-style trim suggest budget for cosmetic updates before pushing rents toward the top of the range.From photo 4
Lower-level bedroom legality affects value and rent If the basement doesn't count as a legal bedroom, the 3-bed rent estimate of $2,050 may be too high.Listing says: “The egress-equipped lower level adds flexibility for a family room, additional bedroom, home office, or hobby space”
Seller has a very low basis and lots of room to negotiate A 1996 purchase at $102K means the seller can accept a much lower price and still profit.

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

doneNew roofListing says: Recent updates include a new roof, siding, gutters, and a furnace with a new heat exchanger
doneSiding and gutters replacedListing says: Recent updates include a new roof, siding, gutters, and a furnace with a new heat exchanger
doneFurnace with new heat exchangerListing says: a furnace with a new heat exchanger, giving you real peace of mind from day one

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: $449,000
Cash to close: $103,270
Price per unit: $224,500
GRM: 10.2

Each month

Cash flow: −$577/mo
Cash-on-cash: −6.7%
Cap rate: 4.8%
DSCR: 0.76×

Break-even

Price that breaks even: $340,587
Rent that breaks even: $4,415/mo

Long run

Year 30: property vs stocks: $1.28M vs $1.02M
Cash flow turns positive: year 12

Monthly

Monthly breakdown

Rent	$3,675
Vacancy (6%)	−$220
Collected	$3,454
Property tax Public record	−$622
Insurance Estimate	−$202
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$294
Capital reserve (8% of rent)	−$294
Net operating income	$1,813
Mortgage (principal + interest)	−$2,390
Cash flow	−$577
Principal paid down (equity, not cash)	$304

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$1,276,669

Your equity when you sell: $1,024,451
Rental profits, invested at 7%: $252,219

Same money in stocks$1,024,525

Cash to close, invested at 7%: $786,118
Monthly shortfalls, invested: $238,408

The building comes out $252,144 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 $1.28M, stocks $1.02M. 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.

3 bed estimate $2,075/mo · range $1,850–$2,325 · 15 rentals within 3 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3345 36th Ave S Unit 1, Minneapolis	$1,600	3 / 1	1,500	1.1 mi	2026-09-21	Apartment
3015 29th Ave S, Minneapolis	$2,260	3 / 1	1,168	1.6 mi	2026-09-27	Multi family
5100 Bloomington Ave S, Minneapolis	$1,900	3 / 1	1,231	2.0 mi	2026-09-22	Multi family
2513 29th Ave S Unit 2, Minneapolis	$2,150	3 / 2	1,000	2.2 mi	—	Apartment
1838 Portland Ave, Saint Paul	$1,950	3 / 1	—	2.2 mi	2026-07-27	Apartment
1849 Portland Ave S, Saint Paul	$1,795	3 / 1	925	2.2 mi	2024-04-15	Apartment
2742 18th Ave S, Minneapolis	$1,850	3 / 1	1,270	2.4 mi	2026-09-08	Apartment
2835 11th Ave S, Minneapolis	$1,700	3 / 2	1,166	2.6 mi	2026-05-21	Apartment
2500 17th Ave S Unit 2, Minneapolis	$1,200	3 / 1	—	2.7 mi	2026-06-05	Apartment
1735 Graham Ave, Saint Paul	$2,185	3 / 2	1,568	2.8 mi	2024-04-12	Apartment

1 bed estimate $1,600/mo · range $1,525–$1,775 · 8 rentals within 0.75 mi

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Type
3625 E 43rd St, Minneapolis	$1,750	1 / 1	858	0.2 mi	2025-01-03	Apartment
4052 Minnehaha Ave, Minneapolis	$1,100	1 / 1	650	0.3 mi	—	Apartment
4444 Minnehaha Ave, Minneapolis	$1,375	1 / 1	720	0.3 mi	2026-05-08	Apartment
4603 Minnehaha Ave, Minneapolis	$1,484	1 / 1	590	0.5 mi	2026-05-01	Apartment
4621 Snelling Ave, Minneapolis	$1,623	1 / 1	724	0.5 mi	2024-04-12	Apartment
4020 Nawadaha Blvd, Minneapolis	$1,570	1 / 1	550	0.6 mi	2024-04-12	Apartment
4757 Hiawatha Ave, Minneapolis	$1,410	1 / 1	575	0.6 mi	2026-04-07	Apartment
3815 Hiawatha Ave, Minneapolis	$1,422	1 / 1	568	0.7 mi	2026-07-31	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

mediumBasement bedroom and bath may not count as legal living space; main unit's '3 bedrooms' may depend on it Listing says: The egress-equipped lower level adds flexibility for a family room, additional bedroom, home office, or hobby space · AI review
mediumHeating looks like one furnace system; the heat exchanger was replaced rather than the furnace, so age is unclear Listing says: a furnace with a new heat exchanger · AI review
lowTax bill is already non-homestead and high relative to rents Based on: data: county.tax · AI review

Opportunities

The seller bought for $102,000 in May 1996, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 0702823420143: last sale 1996-05-01, $102,000
Owner-occupy the main unit and rent the 1-bed upstairs to offset costs Listing says: Whether you're looking to owner-occupy, house-hack, or expand your rental portfolio · AI review
Garage shop with 220-amp service could earn extra rent or serve a trade user Listing says: the 2.5-car garage includes a fantastic shop space with 220-amp service · AI review
Minneapolis has no rent cap, so rents can move with the market Based on: data: underwriting.rent_rule · AI review

Questions for the agent

What are the current rents and lease end dates for each unit, and is either month-to-month?
Who pays heat, electric and water, and are there separate meters and furnaces for each unit?
When were the roof, siding and heat exchanger done, and are permits on file?
Is the basement bedroom legal, and how many bedrooms does the rental license list?
Is the upstairs unit separately metered and does it have its own heat?
Why has the seller listed at $449K when county market value is $393K?

Bottom line

Nicely updated on the outside, but at $449K the rents can't support it; only makes sense as an owner-occupied house-hack at a much lower price. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordHennepin County record, current payable year (non-homestead)	$7,464
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,421
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 2026-09-04 (31 days); last sold for $102,000 on 1996-05-28.

Date	Event	Price
2026-09-04	Listed	$449,000
1996-05-28	Sold public record	$102,000
1992-09-25	Sold public record	$22,751

County record Public record

Recorded as	duplex
Living units	2
Year built	1925
Market value (2026)	$393,000
Property tax	$7,464
Special assessments	none
Homestead	no
Last sale	1996-05-01 · $102,000

Source: Hennepin County parcel records.

City rental license

CHOWNEXMPT: 2 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

MN 55, about 422 m away.

Crime in Hiawatha

370 incidents in the last 12 months (59 per 1,000 residents), −10% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).