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505 8th Ave SE

Triplex · 3 units: 1 bed / 1 bath ×3 unit split estimated · 1,964 sq ft

Minneapolis, MN · Marcy Holmes · View the listing ↗

Far off
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Photos courtesy of RE/MAX Results, via Realtor.com.

Asking price
$475,000
3 units · $158K per unit
Monthly cash flow
−$1,423
at 20% down, 7%
Estimated rent
$2,925/mo
medium confidence
Break-even price
$207,564
where cash flow hits $0

Adjust the numbers See the full breakdown

First look

This is a well-kept 1900 triplex with a real plus: three furnaces and separated electric meters, so tenants pay their own heat and electric. The numbers don't work at $475K. Our estimate is about $975 per 1-bed unit, and underwriting shows roughly -$1,423/month at 20% down with a 2.8% cap rate. Break-even is about $208K, so the gap is huge. The listing gives no rents, no lease terms and no unit mix, so get the rent roll first. Photos show original kitchens and dated baths in the upper unit, and the seller has owned since 2000, so there is room to negotiate. I'd only go see it if the price drops a lot or the actual rents are far above our estimate.

Things to consider

  1. Price is far above what the rents support At ask, cash flow is deeply negative and break-even is far below the price. A purchase here depends on a large price cut.
  2. Seller's low basis gives room to negotiate The owner has held since 2000 and likely has big equity, so a low offer can still be a win for them.
  3. Separate meters and furnaces lower owner costs With tenants paying heat and electric, expenses are mostly taxes, insurance, water and repairs. That helps the numbers, but not enough to close the gap.Listing says: “Tenants pay for their own heat and electricity.”
  4. Interiors look dated Original kitchens and worn finishes mean turnover costs and likely rent limits until updated.From photo 9
  5. Taxes are significant and homestead status may change The current bill is on homestead; an investor may pay a higher non-homestead rate, which would worsen cash flow.
  6. Freeway noise nearby I-35W is about 142 m away, which can reduce rents or increase turnover.

From the photos

Listing photo 1
1 of 8Plus

Exterior siding appears painted and in decent shape, with a front porch and outside stairs to the upper units

Listing photo 3
2 of 8Check

Exterior stairs and balconies at the back appear to be wood; check their condition and code compliance

Listing photo 8
3 of 8Concern

Kitchen has a vintage built-in hutch, a basic old sink base and an older electric range, so it appears dated and not renovated

Listing photo 9
4 of 8Concern

Vinyl floors and a basic range and fridge suggest low-end finishes; budget for updates before raising rents

Listing photo 10
5 of 8Concern

Bathroom has a basic vanity and dated finishes, appears cosmetically refreshed only

Listing photo 6
6 of 8Concern

Window AC unit and worn carpet in the unit; the unit appears to need paint and flooring at turnover

Listing photo 4
7 of 8Plus

Original woodwork and enclosed porch are strong tenant appeal features

Listing photo 1
8 of 8Check

No photos of furnaces, electrical panels, basement or the other units, so the stated updates are unverified

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

Condition and repairs

  • done3 newer forced air furnaces with separate metersListing says: 3 newer forced air furnaces with separate meters
  • doneUpdated electrical service with separated metersListing says: updated electrical service with separated meters
  • done3 newer hot water heatersListing says: 3 newer hot water heaters

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
$475,000
Cash to close
$109,250
Price per unit
$158,333
GRM
13.5

Each month

Cash flow
−$1,423/mo
Cash-on-cash
−15.6%
Cap rate
2.8%
DSCR
0.44×

Break-even

Price that breaks even
$207,564
Rent that breaks even
$4,727/mo

Long run

Year 30: property vs stocks
$1.08M vs $2.09M
Cash flow turns positive
not within 30 years

Monthly

Monthly breakdown

Rent$2,925
Vacancy (6%)−$176
Collected$2,750
Property tax Listing−$598
Insurance Estimate−$293
Water, sewer, trash Estimate−$255
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (7% of rent)−$205
Capital reserve (8% of rent)−$234
Net operating income$1,105
Mortgage (principal + interest)−$2,528
Cash flow−$1,423
Principal paid down (equity, not cash)$322

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$1,083,773
Your equity when you sell
$1,083,773

Sells for $1,152,950 (value up 3% a year), minus 6% selling cost ($69,177). Rent paid down $380,000 of loan.

Rental profits, invested at 7%
$0

$0 of cash flow over 30 years, plus what it earned invested.

Same money in stocks$2,090,008
Cash to close, invested at 7%
$831,639

$109,250 put into an index fund instead of the down payment and closing costs.

Monthly shortfalls, invested
$1,258,369

$338,004 you'd have paid in while the building lost money, invested instead.

Stocks come out $1,006,235 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 $1.08M, stocks $2.09M. Stocks win.

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 $975/mo · range $800–$1,125

AddressRentBd / BaSq ftDistanceListedMatch
718 4th St SE, Minneapolis 55414 off market $925 1 / 1 — 0.1 mi 2025-02-24 94%
801 University Ave SE, Minneapolis 55414 $950 1 / 1 — 0.2 mi 2024-04-17 94%
520 Se 5th St, Minneapolis 55414 off market $1,295 1 / 1 — 0.2 mi 2026-08-05 94%
814 8th St SE, Minneapolis 55414 $875 1 / 1 — 0.2 mi 2024-04-15 94%
800 University Ave SE, Minneapolis 55414 $890 1 / 1 — 0.2 mi 2026-06-24 94%
810 8th St SE, Minneapolis 55414 $965 1 / 1 — 0.2 mi 2024-04-15 94%
515 5th St SE, Apt 4, Minneapolis 55414 off market $1,395 1 / 1 — 0.2 mi 2026-05-19 94%
818 8th St SE, Minneapolis 55414 $1,000 1 / 1 — 0.2 mi 2024-04-15 94%
617 10th Ave SE, Unit 101, Minneapolis 55414 off market $1,200 1 / 1 — 0.2 mi 2025-07-28 94%
616 10th Ave SE, Minneapolis 55414 $990 1 / 1 — 0.2 mi 2024-04-15 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

  • highListing gives no rents, lease terms or unit mix, so income can't be checked Based on: data: rent_estimate · AI review
  • mediumAbout 142 m from I 35W: traffic noise usually costs $50–100/month in rent. Based on: OpenStreetMap: nearest motorway (I 35W) at 142 m
  • mediumAsking is $267,436 above the price where cash flow breaks even ($207,564) at the default scenario. Based on: Derived: price $475,000 vs. break-even $207,564
  • lowplaceholder Based on: data: listing · AI review

Opportunities

  • The seller bought for $82,000 in May 2000, so they can take a lower offer and still come out well ahead. Public record: Hennepin County parcel 2402924230038: last sale 2000-05-01, $82,000
  • Separately metered heat and electric keep owner operating costs low Listing says: Tenants pay for their own heat and electricity. · AI review
  • Walk-up attic could add storage, or possibly be explored for more value Listing says: a walk up attic for additional storage · AI review
  • Minneapolis has no rent cap, so rents can rise after a refresh Based on: data: underwriting.rent_rule · AI review

Questions for the agent

  • What are the current rents, lease end dates and are any tenants month-to-month?
  • What is the unit mix, and how many bedrooms is each unit?
  • What are the ages of the roof, siding and furnaces, and are the windows all replaced?
  • Can I see 12 months of expenses, including taxes, insurance, water and trash?
  • Why has it sat 60 days, and has the price changed?
  • Is the third unit's rental license current and does it list three units?

Bottom line

Charming, well-metered triplex, but $475K is about $267K above where the numbers break even, so it needs a big price cut or much higher rents than we estimate. 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.$7,182
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$3,510
Water, sewer, trash / mo Estimateestimate. $85/unit/mo, owner-paid$255
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; "fully updated" in the description: -1 pts each7% / 8%

Price history Realtor.com

On the market since 2026-08-03 (63 days); down $24,000 (4.8%) from the first ask of $499,000; last sold for $82,000 on 2000-06-26.

DateEventPrice
Price changed$475,000
Listed$499,000
Sold public record$82,000

County record Public record

Recorded astriplex
Living units3
Year built1900
Market value (2026)$467,900
Property tax$7,182
Special assessmentsnone
Homesteadno
Last sale2000-05-01 · $82,000

Source: Hennepin County parcel records.

City rental license

CHOWN: 3 unit(s), Tier 1, status active, renews 2027-03-01.

Nearest highway

I 35W, about 142 m away.

Crime in Marcy Holmes

866 incidents in the last 12 months (57 per 1,000 residents), +35% vs. the year before. Minneapolis police incidents, all reported offenses (definitions differ from St. Paul's, so don't compare across cities).