432 N 7th Ave E

Duplex · 2 units: 2 bed / 1 bath ×2 · 1,364 sq ft

70 photos

Photos courtesy of Messina & Associates Real Estate, via Realtor.com.

Asking price: $275,000
Monthly cash flow: −$86
Estimated rent: $2,650/mo
Break-even price: $258,919

Adjust the numbers See the full breakdown

From the listing

Turnkey income property in Duluth's East End. 1896 duplex, two fully furnished units, 682 sq ft each, both leased at $2,400/month; owner pays all utilities. In-unit laundry in both units. Unit 1 (432 N 7th Ave): 2 bed, 1 bath. Unit 2 (702 E 5th St): 2 bed, 1 bath. Clean, neutral interiors with updated kitchens and stainless appliances. Walking distance to Downtown Duluth, the Lakewalk, and Lake Superior. Near Leif Erikson Park, Chester Park, and Chester Bowl trails. Close to shops, restaurants, St. Luke's Hospital, UMD, and St. Scholastica. Four off-street parking spaces. Active rental license. Furnishings included. 24-hour notice required. Double Lot

Listing courtesy of Messina & Associates Real Estate (NICKI CONRAD). Description from Realtor.com, MLS #6127408. Believed reliable but not guaranteed; confirm with the listing agent. View on Realtor.com ↗

First look

This is a furnished, two-building-address duplex pitched as turnkey, with both units 'leased at $2,400/month' each, which is nearly double our $1,325 mid estimate for a 2-bed. The owner pays all utilities and furnishings are included, so that rent likely bundles in furniture and utilities, probably a furnished or short-term style rental. Our underwriting at the ask shows about -$86/month cash flow with a 6.0% cap rate, and break-even is about $258,919, so it doesn't work at today's rates unless the $2,400 holds. Two different street addresses (432 N 7th Ave and 702 E 5th St) on a 'double lot' is odd: confirm whether this is one building or two, and whether it's really one parcel. First asks: leases, the rent roll, 12 months of utility bills, and the rental license. Worth a showing only if the rents and expenses check out on paper.

Things to consider

Rent is far above our estimate At $2,400 each the income is about double our $1,325 mid; if tenants leave and you re-let unfurnished, income could drop sharply and the deal loses money.Listing says: “both leased at $2,400/month”
Owner-paid utilities Water, heat and electric for two furnished units are a big, variable expense that your underwriting must include.Listing says: “owner pays all utilities”
Numbers don't work at asking Our underwriting shows negative cash flow and a break-even price below the ask, so price needs to come down or the rent must be proven.
Unverified parcel and taxes Taxes and unit count are unmatched in county records, and the two addresses raise questions about what you're actually buying.
Furnishings and turnover Furnished units mean replacement costs and likely higher turnover; confirm what is included in the sale.Listing says: “Furnishings included. 24-hour notice required.”
1896 building with limited system information Photos show cosmetic updates but nothing on heat, panel, plumbing or foundation, so inspect before relying on the finishes.Listing says: “1896 duplex, two fully furnished units”

From the photos

Based on 10 of the listing photos. Photos can hide as much as they show; an inspection is the real answer.

Rents the listing states

Unit 1 (432 n 7th ave): $2,400 (lease)Listing says: both leased at $2,400/month; owner pays all utilities
Unit 2 (702 e 5th st): $2,400 (lease)Listing says: both leased at $2,400/month; owner pays all utilities

Condition and repairs

doneUpdated kitchens with stainless appliancesListing says: Clean, neutral interiors with updated kitchens and stainless appliances.

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: $275,000
Cash to close: $63,250
Price per unit: $137,500
GRM: 8.6

Each month

Cash flow: −$86/mo
Cash-on-cash: −1.6%
Cap rate: 6.0%
DSCR: 0.94×

Break-even

Price that breaks even: $258,919
Rent that breaks even: $2,761/mo

Long run

Year 30: property vs stocks: $1.20M vs $486K
Cash flow turns positive: year 1

Monthly

Monthly breakdown

Rent	$2,650
Vacancy (6%)	−$159
Collected	$2,491
Property tax Listing	−$236
Insurance Estimate	−$196
Water, sewer, trash Estimate	−$170
Lawn care ($120 × 6 mo ÷ 12)	−$60
Repairs (8% of rent)	−$212
Capital reserve (9% of rent)	−$238
Net operating income	$1,378
Mortgage (principal + interest)	−$1,464
Cash flow	−$86
Principal paid down (equity, not cash)	$186

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$1,196,691

Your equity when you sell: $627,447
Rental profits, invested at 7%: $569,243

Same money in stocks$485,904

Cash to close, invested at 7%: $481,475
Monthly shortfalls, invested: $4,429

The building comes out $710,787 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 $1.20M, stocks $486K. 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 $1,325/mo · range $1,200–$1,450

Address	Rent	Bd / Ba	Sq ft	Distance	Listed	Match
330-332 N 12th Ave E, Duluth 55802 off market	$1,300	2 / 1	1,240	0.5 mi	2026-06-09	97%
1301 E 3rd St, Duluth 55805	$1,200	2 / 1	1,244	0.5 mi	2026-09-29	97%
918 922 E 5th St, Duluth 55805	$1,300	2 / 1	1,600	0.2 mi	2026-07-02	96%
705 E 6th St, Apt 2, Duluth 55805 off market	$1,150	2 / 1	1,040	0.1 mi	2026-09-20	94%
618 N 7th Ave E, Unit Upper, Duluth 55805 off market	$1,350	2 / 1	—	0.1 mi	2026-08-26	94%
814 E 5th St, Unit 2, Duluth 55805 off market	$1,075	2 / 1	—	0.1 mi	2026-06-12	94%
920 1/2 E 5th St, Duluth 55805 off market	$1,550	2 / 1	—	0.2 mi	2026-04-02	94%
803.5 N 8th Ave E, Duluth 55805 off market	$1,125	2 / 1	—	0.2 mi	2026-09-08	94%
120 N 8th Ave E, Unit Upper, Duluth 55805 off market	$1,395	2 / 1	—	0.2 mi	2026-07-31	94%
728 N 5th Ave E, Unit 1, Duluth 55805 off market	$1,325	2 / 1	—	0.3 mi	2026-06-17	94%

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

highStated rent is about 85% above our 2-bed estimate; likely includes furnishings and utilities, so it may not carry over to a normal unfurnished lease. Listing says: two fully furnished units, 682 sq ft each, both leased at $2,400/month · 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 432 7TH AVE E N
mediumOwner pays all utilities, which eats into income and is hard to forecast without bills. Listing says: owner pays all utilities · AI review
mediumTwo different street addresses and a double lot; unclear whether this is one building, two buildings, or one parcel. Listing says: Unit 1 (432 N 7th Ave): 2 bed, 1 bath. Unit 2 (702 E 5th St): 2 bed, 1 bath. · AI review
lowTiny units at 682 sq ft each with in-unit laundry means plumbing and hookups to verify. Listing says: two fully furnished units, 682 sq ft each · AI review

Opportunities

Four off-street spaces and a double lot are rare in this area and could support more value or a future add-on. Listing says: Four off-street parking spaces. · AI review
Walkable to the Lakewalk, downtown and three campuses/hospital supports tenant demand. Listing says: Close to shops, restaurants, St. Luke's Hospital, UMD, and St. Scholastica. · AI review
No rent cap lets rents move with the market. Based on: data: underwriting.rent_rule · AI review

Questions for the agent

Are the $2,400 rents for furnished, utilities-included tenancies, and what would each rent unfurnished with tenants paying utilities?
Can I see the leases, lease end dates, and 12 months of utility bills for both units?
Is this one building or two, and how many parcels and tax IDs are there?
What are the annual property taxes and any special assessments?
Who owns the furniture and appliances, and what are the heat type, roof age, and electrical panel?
Is the rental license active for both units and when does it expire?

Bottom line

The $2,400 rents look like a furnished, utilities-included package, and at our $1,325 estimate this loses money at $275K, so verify everything before a showing. 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.	$2,834
Insurance / yr Estimateestimate. from units, square feet and age; get a quote	$2,355
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. built 1896: +1 pt capital reserve	8% / 9%

Price history Realtor.com

On the market since 2026-08-17 (49 days); last sold for $166,000 on 2022-05-27; listed for rent at $2,700/mo on 2024-04-13.

Date	Event	Price
2026-08-17	Listed	$275,000
2024-04-15	Removed	—
2024-04-13	Rent changed	$2,700/mo
2024-04-07	Rent changed	$2,700/mo
2024-02-21	Listed for rent	$2,600/mo
2023-12-15	Removed	—
2023-12-01	Rent changed	$2,600/mo
2023-05-11	Listed for rent	$2,400/mo
2023-05-04	Listed for rent	$2,400/mo
2023-05-03	Removed	—
2023-03-19	Listed for rent	$2,400/mo
2023-03-18	Removed	—
2023-02-10	Listed for rent	$2,400/mo
2022-11-19	Removed	—
2022-09-29	Listed for rent	$2,400/mo
2022-09-02	Listed for rent	$2,400/mo
2022-05-27	Sold public record	$166,000
2022-05-13	Sold	$166,000
2022-04-11	Listed	$155,000
2013-05-10	Sold public record	$95,500
2013-01-16	Removed	$99,900
2012-10-08	Listed	$99,900
2012-10-02	Removed	$99,900
2012-07-30	Price changed	$99,900
2012-05-21	Listed	$104,900

From the listing Listing

Listed as	duplex
Property tax, 2026	$2,834
County	St. Louis County
Parcel number	010-3830-1730 & 010-3830-17510

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 Duluth on rental licensing before you buy.