3609 E 42nd St · Minneapolis, MN 55406

$335,000

3 bd · 2.0 ba · 1,156 sqft · MultiFamily public records · 18 Days on market

Built 1900 5,948 sqft lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.5/30.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• 1% rule +7.0/10.0
• Livability +3.9/5.0
• Schools +3.5/10.0
• Rent growth +3.2/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 2 units. estimate disagrees with records

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Thoughtfully renovated up-down duplex in the heart of Longfellow offering a rare opportunity for both investors and owner-occupants alike. Updated inside and out, this turnkey property blends classic Minneapolis character with extensive 2025 improvements, including a new roof, gutters, exterior paint, landscaping, fencing, added A/C, and more. The main level unit features 2 bedrooms and 1 full bath with refinished hardwood floors, spacious living and dining areas, and a beautifully remodeled kitchen complete with quartz countertops, tiled backsplash, stainless steel appliances, updated cabinetry, and modern fixtures. The upper unit offers a private 1 bedroom, 1 bathroom layout with its own

Key facts

• 5,948 sq ft lot
• Built 1900
• Listed 17 days

Property features AI

Finance

• Financial info: Owner pays electricity, gas, sewer, trash collection and water; Gross income reported: $36,384; Two total units
• HOA & community: Deck; Patio; Porch

Exterior

• Parking: Shared driveway
• Utilities: City water (connected); City sewer (connected); Natural gas
• Home design: Residential income property (duplex, up-and-down); One and one-half levels; Entry level: main and upper unit
• Construction: Slab foundation; Roof replaced within last 8 years; Foundation area noted
• Exterior features: Full fencing; Patio; Porch; Shared driveway

Interior

• Kitchen: Dishwasher; Range; Microwave; Refrigerator; Freezer; Stainless steel appliances
• Bedrooms: Two-bedroom unit (one unit); One-bedroom unit (one unit)
• Flooring: Hardwood floors
• Bathrooms: One full bathroom in each unit
• Heating & cooling: Forced air heat; Central air conditioning
• Interior features: Hardwood floors; Patio; Porch; Partial basement
• Laundry & utility: Washer in unit; Dryer in unit

What this means for you Summary

Snapshot

• This is a 2 × 3-bed/2.0-bath units multifamily listed at $335k.

Deal economics

• At list price, monthly cash flow is $1k ($14k/yr) — positive. Per door: $601/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $335k).
• Recommended offer: $330k (1.5% below list) — sets the bar for market timing.
• Cap rate 10.6% vs local median 3.1% in Minneapolis — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 78/100 on livability (#110 in MN, #2,525 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A+; Watch: cost of living C-, crime F.
• Minneapolis Public School District (urban): math 35% / reading 46% proficiency, ranked #217 of 301 in MN (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+3.0%/yr); 154 active listings in the ZIP; 14 comparable units currently listed for rent nearby; rentals leasing fast (median 9d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 4,651 units permitted in Hennepin County in 2024 (2,443 in 5+ unit buildings).
• At $4,013/mo this rent would consume 51% of the median local household income ($94k/yr) (locally 1026% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $10k of value loss. Plan a longer hold.
• Hennepin County population projected at +30% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $94k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• It's been on market 18 days — a 2% lower offer ($330k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 28y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $329,975 (1.5% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
6. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
7. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.20% ✓
• Cap rate: 10.60%
• Cash-on-cash: 15.37%
• DSCR: 1.68
• GRM: 7.0

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.99% rent growth · sell at horizon

5-year hold

• IRR: 6.0%
• Equity multiple: 1.23×
• Total profit: $22,041
• Equity at exit: $49,950

10-year hold

• IRR: 15.4%
• Equity multiple: 2.25×
• Total profit: $116,939
• Equity at exit: $28,965

Cash invested: $93,800 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (CITY): 34 Tenant-Leaning
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City Minneapolis: 34 Tenant-Leaning · D+50

Tenant Opportunity to Purchase; renter's protections.

Methodology + full state rankings →

ZIP-level market 55406

• Rents YoY: 3.0%
• Active inventory: 154
• Price-to-rent: 13.9×

Monthly cashflow live

• Estimated rent: $4,013 high
• Mortgage (P&I): −$1,757
• Tax from tax record: −$73 /mo · $870/yr
• Insurance: −$140
• HOA: −$0
• Vacancy / Maint / Mgmt: −$843
• Net cashflow: $1,201

Break-even live

Break-even rent $2,492

Max offer price $335,000

Occupancy floor 65%

Sensitivity live

Price	-10% $1,391	-5% $1,296	+0% $1,201	+5% $1,107	+10% $1,012
Rent	-10% $884	-5% $1,043	+0% $1,201	+5% $1,360	+10% $1,518
Rate	-1.0pp $1,370	-0.5pp $1,287	base $1,201	+0.5pp $1,115	+1.0pp $1,026

2-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$4,014
Total (2 units)			$4,013

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $83,750
• Closing costs: $10,050
• Reserves months: —
• Total cash needed: —

Rent comps 14 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3605 E 44th St Minneapolis, MN	2.0–3.0	1.0–1.5	825	$2,499	$3.03	3d	37	0.31mi
3912 Minnehaha Ave Minneapolis, MN	2.0	1.0	650	$1,495	$2.30	15d	1	0.37mi
4244 45th Ave S Minneapolis, MN	3.0	1.0	1200	$2,200	$1.83	8d	1	0.54mi
4621 Snelling Ave Minneapolis, MN	1.0–2.0	1.0–2.0	727	$2,306	$3.17	0d	6	0.56mi
4020 Nawadaha Blvd Minneapolis, MN	1.0–2.0	1.0–2.0	795	$2,388	$3.00	4d	9	0.67mi
3806 28th Ave S Minneapolis, MN	1.0–2.0	1.0–2.0	820	$1,925	$2.35	25d	3	0.77mi
3120 E 36th St Minneapolis, MN	2.0	1.0	585	$1,925	$3.29	8d	7	0.81mi
3215 E Minnehaha Pkwy Minneapolis, MN	2.0	1.0–2.0	1004	$2,550	$2.54	44d	4	0.82mi
3806 24th Ave S Minneapolis, MN	2.0	1.0–2.0	772	$2,305	$2.98	5d	11	0.98mi
3449 Snelling Ave Unit 3451 Minneapolis, MN	3.0	1.0	1108	$1,995	$1.80	15d	1	1.02mi
3501 22nd Ave S Unit Upper Minneapolis, MN	3.0	1.0	1100	$1,595	$1.45	25d	1	1.31mi
3501 22nd Ave S Minneapolis, MN	3.0	1.0	1100	$1,595	$1.45	8d	1	1.31mi
3136 Minnehaha Ave Minneapolis, MN	1.0–2.0	1.0	602	$1,795	$2.98	0d	2	1.41mi
3126 Minnehaha Ave Minneapolis, MN	2.0	1.0	562	$1,895	$3.37	0d	3	1.44mi

Listing history 14 events

1. 2026-06-21
   days on market $335,000 Active 18 DOM
2. 2026-06-18
   days on market $335,000 Active 15 DOM
3. 2026-06-17
   days on market $335,000 Active 14 DOM
4. 2026-06-16
   days on market $335,000 Active 13 DOM
5. 2026-06-15
   days on market $335,000 Active 12 DOM
6. 2026-06-13
   days on market $335,000 Active 10 DOM
7. 2026-06-09
   days on market $335,000 Active 6 DOM
8. 2026-06-08
   days on market $335,000 Active 5 DOM
9. 2026-06-07
   days on market $335,000 Active 4 DOM
10. 2026-06-04
    statusdays on market $335,000 Active 1 DOM
11. 2026-06-03
    days on market $335,000 Coming Soon 5 DOM
12. 2026-06-02
    days on market $335,000 Coming Soon 4 DOM
13. 2026-06-01
    days on market $335,000 Coming Soon 3 DOM
14. 2026-05-31
    days on market $335,000 Coming Soon 2 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast MN · Partial reset (capped growth)

• Current annual tax: $870 · $73/mo
• Projected year-2 tax: $2,311 · $193/mo
• Expected delta: +$1,441/yr (+$120/mo · 165.6%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥100°F today · 14 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 2 by 30 yrs out

Taxation est. · year 1

• Rental income: $48,156
• − Mortgage interest: −$18,765
• − Property taxes: −$870
• − Insurance: −$1,675
• − Repairs & maintenance: −$3,852
• − Management: −$3,852
• − Depreciation: −$9,745
• Taxable income: $9,395
• Est. tax owed @ 24.0%: −$2,255
• After-tax cash flow: $12,162/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Minneapolis Public School District
• NCES district ID: 2721240
• Math proficiency: 35% ▼ -7.00%
• Reading proficiency: 46% ▼ -1.00%
• Median HH income: $50,521
• Composite: 34.92/100
• National rank: #5067
• State rank: #217 of 301 in MN

Livability — Minneapolis

• Score: 78/100
• State rank: #110
• US rank: #2525

Category grades

Amenities A+ Commute A+ Cost of living C- Crime F Employment A- Housing A+ Health & safety A+ User ratings D+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Minneapolis, MN
• County: Hennepin County · 1,150,272 people
• City population: 417,555
• Metro: Minneapolis-St. Paul-Bloomington, MN-WI
• Population (ZIP): 36,581
• Household income: $93,910
• Rent vs Own: 34.0% rent · 66.0% own
• Severe rent burden: 1026.0

Population outlook (Hennepin County) Hauer SSP2

• Today (2025): 1,405,227 people
• By 2030: 1,492,650 · +6.2%
• By 2040: 1,660,157 · +18.1%
• By 2050: 1,823,498 · +29.8%
• By 2075: 2,221,283 · +58.1%
• By 2100: 2,509,976 · +78.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (70%)
• Race & ethnicity: White 70% Black 12% Two or more races 10% Hispanic / Latino 7% Asian 3%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Portuguese 11% Romanian 3% Lithuanian 3%
• Foreign-born: 11% · Canada, South Korea
• Languages at home: 85% English-only · Spanish 4% Other Indo-European 1% Other Asian/Pacific 1%

Political lean MEDSL · Hennepin

• 2024 margin: Solid D (+42.6) · D 70.2% · R 27.5% · Other 2.3%
• 2008→2024 swing: +14.0pp toward D · 2008: 28.6pp · 2024: 42.6pp
• All cycles: 2024: D+42.6 2020: D+43.2 2016: D+35.3 2012: D+27.1 2008: D+28.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -397.38%
• Current HPI: 266.2546
• Rent YoY: ▲ 2.99%
• Metro: Minneapolis-St. Paul-Bloomington, MN-WI
• State GDP YoY: ▲ 2.41%
• F500 in state: 34

Industry mix (Fortune 500 HQ in MN)

Industry	F500 HQs	Revenue
▸Healthcare	2	$407B
▸Retail	2	$150B
▸Consumer Goods	2	$32B
▸Industrial Machinery	2	$6B
▸Agriculture	1	$40B
▸Healthcare / Medical Devices	1	$32B

Price history

+459.3% since first listed

12 events — show timeline

• 2026-05-29 Coming Soon $335,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-07-23 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2025-05-22 Listed $344,900 NORTHSTARMLS as Distributed by MLS Grid
• 2024-09-19 Sold (Public Records) $623,779 Public Records
• 2023-11-12 Rental Removed $1,100 APPFOLIO
• 2023-10-25 Listed for Rent $1,100 APPFOLIO
• 1999-07-15 Sold (Public Records) $58,000 Public Records
• 1999-06-28 Sold (MLS) $58,000 NORTHSTARMLS as Distributed by MLS Grid
• 1999-04-21 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1999-03-26 Listed $59,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-02-08 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 1998-06-08 Listed $59,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-9.0%/yr

Latest (2025): $870 · -60.1% YoY. Source: county tax records.