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886 Payne Ave

Triplex · 3 units: 1 bed / 1 bath ×3 unit split estimated · 4,284 sq ft

Saint Paul, MN · Payne – Phalen (Railroad Island) · View the listing ↗

Far off
10 photos
886 Payne Ave, photo 1
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886 Payne Ave, photo 2
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886 Payne Ave, photo 3
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886 Payne Ave, photo 4
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886 Payne Ave, photo 5
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886 Payne Ave, photo 6
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886 Payne Ave, photo 7
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886 Payne Ave, photo 8
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886 Payne Ave, photo 9
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886 Payne Ave, photo 10
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Photos, via Realtor.com.

Asking price
$419,900
3 units · $140K per unit
Monthly cash flow
−$1,122
at 20% down, 7%
Estimated rent
$3,300/mo
medium confidence · 25 rentals within 1.5 mi
Break-even price
$209,059
where cash flow hits $0

Adjust the numbers See the full breakdown

First look

This is a mixed-use building: a bakery on the ground floor and three 1-bedroom apartments above. The agent has owned it 27 years and says it is time to retire. Our model shows about -$1,122 a month at asking with 20% down, a 3.2% cap rate, and a break-even price near $209K against a $419,900 ask. The description gives no rents, no lease terms and no expenses, so the first thing to get is the bakery lease (rent, term, who pays what) and a full rent roll. Commercial lending and underwriting differ from a 2-4 unit residential loan, so check financing early. It is not worth a showing at this price unless the real rents are far above our $1,100 estimates.

Things to consider

  1. Price is far above what the numbers support Our model shows negative cash flow of about $1,122 a month at asking. Break-even is around $209K, so the gap is large.
  2. Commercial income is unknown The bakery lease could carry the deal or sink it. Rent, term and expense split decide the value, and a single-tenant storefront can sit vacant.Listing says: “Commercial tenant is a bakery.”
  3. Rental licensing is unclear No rental certificate shows in city data. Unlicensed units can limit rent collection and lending.
  4. Taxes are heavy About $9,200 a year plus assessments eats a large share of three 1-bedroom rents.
  5. Seller can come down A 2002 purchase at $96K and a retirement motive leave room to negotiate hard.
  6. Building age and unseen systems A 1910 building with no system or interior information needs full inspections of roof, wiring, heat and the rear porch before any offer.From photo 4

From the photos

Listing photo 1
1 of 7Plus

Two-story brick corner building with a bakery storefront at street level and 2 pairs of upper windows on the front. Brick looks sound and the cornice looks intact.

Listing photo 7
2 of 7Check

Side wall is stucco over what appears to be brick, with arched windows. The stucco looks mostly intact but is worth checking for cracks or moisture.

Listing photo 4
3 of 7Concern

Rear has a wood deck/porch and a lower flat or low-slope roof section. The wood looks weathered and the roof surface isn't visible.

Listing photo 7
4 of 7Check

Several electric meters, conduit and overhead wires run along the rear. It is hard to tell how many services there are.

Listing photo 5
5 of 7Concern

Parking is on the street in front and a shared alley at the rear with dumpsters. No dedicated lot is visible.

Listing photo 10
6 of 7Plus

Walkable commercial strip with shops and a laundromat next door, and the building is on a busy street.

Listing photo 1
7 of 7Check

No interior photos of the apartments, the bakery space, mechanicals or the basement. Condition of the units is unknown.

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

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
$419,900
Cash to close
$96,577
Price per unit
$139,967
GRM
10.6

Each month

Cash flow
−$1,122/mo
Cash-on-cash
−13.9%
Cap rate
3.2%
DSCR
0.50×

Break-even

Price that breaks even
$209,059
Rent that breaks even
$4,757/mo

Long run

Year 30: property vs stocks
$958K vs $1.67M
Cash flow turns positive
not within 30 years

Monthly

Monthly breakdown

Rent$3,300
Vacancy (6%)−$198
Collected$3,102
Property tax Public record−$768
Insurance Estimate−$346
Water, sewer, trash Estimate−$255
Lawn care ($120 × 6 mo ÷ 12)−$60
Repairs (8% of rent)−$264
Capital reserve (9% of rent)−$297
Net operating income$1,113
Mortgage (principal + interest)−$2,235
Cash flow−$1,122
Principal paid down (equity, not cash)$284

Cash flow each year

Rents +3%/yr (St. Paul's cap for sitting tenants), 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$958,055
Your equity when you sell
$958,056

Sells for $1,019,208 (value up 3% a year), minus 6% selling cost ($61,152). Rent paid down $335,920 of loan.

Rental profits, invested at 7%
$0

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

Same money in stocks$1,669,204
Cash to close, invested at 7%
$735,169

$96,577 put into an index fund instead of the down payment and closing costs.

Monthly shortfalls, invested
$934,035

$238,681 you'd have paid in while the building lost money, invested instead.

Stocks come out $711,149 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 $958K, stocks $1.67M. Stocks win.

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.

1 bed estimate $1,100/mo · range $950–$1,475 · 25 rentals within 1.5 mi

AddressRentBd / BaSq ftDistanceListedType
650 Aguirre St, Saint Paul $1,437 1 / 1 645 0.1 mi 2025-05-28 Apartment
556 Jenks Ave E Unit 4, Saint Paul $1,000 1 / 1 — 0.3 mi 2026-08-19 Apartment
658 Greenbrier St, Saint Paul $1,157 1 / 1 750 0.5 mi 2026-02-25 Apartment
870 E Cook Ave Unit 3, Saint Paul $900 1 / 1 580 0.6 mi — Apartment
321 Bates Ave, Saint Paul $925 1 / 1 560 0.8 mi 2026-05-13 Apartment
616 Ivy Ave E, Saint Paul $1,150 1 / 1 502 0.9 mi 2026-03-20 Apartment
1205 Westminster St, Saint Paul $965 1 / 1 600 0.9 mi 2025-01-03 Apartment
940 E 3rd St, Saint Paul $899 1 / 1 500 1.0 mi 2026-06-30 Apartment
251 Maria Ave, Saint Paul $1,065 1 / 1 325 1.0 mi 2026-06-19 Apartment
1337 Arkwright St N Unit 303, Saint Paul $925 1 / 1 625 1.1 mi — 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

  • highNo rent roll or income figures. The bakery's rent and lease are unknown, and our model has no commercial income to work with. Listing says: Commercial tenant is a bakery. · AI review
  • mediumNo rental certificate (CofO) on file in the city's data. Ask whether the building is licensed as a rental and when it was last inspected. Public record: St. Paul Certificate of Occupancy – Residential: no record for 886 PAYNE AVE (dataset last updated mid-2025)
  • mediumAsking is $210,841 above the price where cash flow breaks even ($209,059) at the default scenario. Based on: Derived: price $419,900 vs. break-even $209,059
  • mediumBack wall of the building has several meters and conduit runs. Metering setup is unclear, so it is not clear who pays for what. Based on: photo 7 · AI review
  • mediumRear porch/deck and the flat-looking roof area look dated and heavily used. Inspect the structure and the roof. Based on: photo 4 · AI review
  • mediumTax bill is high relative to likely income, and a non-homestead mixed-use property is taxed at commercial rates. Based on: data: county.tax · AI review
  • low$328 in special assessments on the payable 2026 tax bill (often street, sewer or code-enforcement charges). Ask what they're for, whether they continue, and whether the seller pays them off at closing. Public record: Ramsey County parcel 292922420147: special assessments (payable 2026) = $328.50

Opportunities

  • The seller bought for $96,000 in Sep 2002, so they can take a lower offer and still come out well ahead. Public record: Ramsey County parcel 292922420147: last sale 2002-09-27, $96,000
  • Three large 1-bedrooms over a commercial tenant. If the rents are below market, there may be room to raise them (the 3% cap applies to sitting residential tenants). Listing says: 3 large 1 bedroom apartments on the second floor · AI review

Questions for the agent

  • Can I see the rent roll, the bakery lease, and 12 months of income and expenses?
  • Who pays heat, water, electric and trash for the bakery and for each apartment? Are there separate meters?
  • Is the building licensed as a rental with the city, and when was the last inspection?
  • What are the $328 special assessments for?
  • How old are the roof, boiler or furnaces, and electrical panels?
  • Is the bakery lease triple net, and does the tenant carry the building's insurance and tax share?

Bottom line

A retiring owner's mixed-use building that loses about $1,100 a month at asking, so it only works at a much lower price or with strong bakery rent we can't see yet. AI-assisted summary

What the records say

Where each number comes from

Property tax / yr Public recordRamsey County record, payable 2026 (non-homestead)$9,212
Insurance / yr Estimateestimate. from units, square feet and age; get a quote$4,148
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 1910: +1 pt capital reserve8% / 9%

Price history Realtor.com

On the market since 2026-09-29 (6 days); last sold for $135,000 on 2009-02-09.

DateEventPrice
Listed$419,900
Removed$449,900
Sold public record$135,000
Sold public record$96,000
Sold public record$90,000

County record Public record

Recorded as—
Living units3
Year built1910
Market value (2026)$419,600
Property tax, payable 2026$9,212
Special assessments$328
Homesteadno
Last sale2002-09-27 · $96,000

Source: Ramsey County parcel records.

City rental certificate (CofO)

No record in St. Paul Certificate of Occupancy – Residential (dataset last updated mid-2025).

Nearest highway

I 35E;US 10, about 1203 m away.

Crime in Payne – Phalen

1,695 incidents in the last 12 months (51 per 1,000 residents), −10% vs. the year before. St. Paul police incidents, excluding proactive visits and community events.