1051 85th Ave Ave W #1051 · Duluth, MN 55808

$84,900

2 bd · 1.0 ba · 735 sqft · Townhouse public records · 45 Days on market

Built 1913 3,375 sqft lot $116/sqft · 16% below area Est $101k · 16% under

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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 +27.1/30.0
• ARV discount +14.6/15.0
• DSCR +9.4/10.0
• 1% rule +6.6/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Good opportunity for a first time home buyer that is willing to invest in a little time to make it their's. Hardwood floors. House is dated just needs to be brought back to life. A lot of potential for a little investment. Ideal for the person that would like to be earning instead of just paying rent. Has many newer items within the last five years. 1 Roof 2 Water supply lines 3 Mudroom 4 Paved parking area 20' X 38' 5 Central air conditioning

Key facts

• New boiler
• Off street parking
• Natural light

Tags

• HARDWOOD FLOORS
• NEW BOILER
• GARDEN SPACE
• OFF STREET PARKING
• BACK DECK
• NATURAL LIGHT

Property features AI

Exterior

• Parking: No designated parking
• Utilities: Public water; Public sewer
• Home design: Residential condominium; 2 stories
• Construction: Block and concrete construction; Asphalt shingle roof
• Exterior features: Deck; City street frontage

Interior

• Bathrooms: One half bathroom
• Heating & cooling: Forced air heating (natural gas); No cooling system
• Interior features: Eat-in kitchen; Full unfinished basement

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath townhouse listed at $85k.

Deal economics

• At list price, monthly cash flow is $241 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($984 rent vs $85k).
• Recommended offer: $82k (3.0% below list) — sets the bar for market timing.
• Cap rate 9.7% vs local median 4.9% in Duluth — 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 82/100 on livability (#36 in MN, #1,060 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: amenities F.
• Duluth Public School District (urban): math 44% / reading 55% proficiency, ranked #132 of 301 in MN (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 35 active listings in the ZIP; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $587 of loan paydown is wiped out by about $3k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 45 days — a 3% lower offer ($82k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 8y ago; this cycle's ask has dropped $15k (15%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $32k; list at $85k implies a 161% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1913 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $82,353 (3.0% below list)

Questions for the listing agent

1. It's been on market 45 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
2. Built in 1913 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
5. 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.
6. 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.
7. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 1.16% ✓
• Cap rate: 9.71%
• Cash-on-cash: 12.19%
• DSCR: 1.54
• GRM: 7.2

CMA / ARV

• ARV (median comp): $100,808
• List price: $84,900
• Delta: -15.78%
• Verdict: UNDERPRICED
• Comps: 8 within 1.0 mi

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1052 87th Ave W	0.10mi	2/1.0	776 (+6%)	10mo	$129,900	$167	78
1035 86th Ave Ave W	0.07mi	2/1.0	840 (+14%)	12mo	$124,900	$149	63
1449 90th Ave Ave W	0.50mi	2/1.0	784 (+7%)	4mo	$77,500	$99	62

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

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

5-year hold

• IRR: 1.8%
• Equity multiple: 1.07×
• Total profit: $1,604
• Equity at exit: $12,659

10-year hold

• IRR: 11.3%
• Equity multiple: 1.89×
• Total profit: $21,132
• Equity at exit: $7,341

Cash invested: $23,772 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 46 Balanced
• State Minnesota: 46 Balanced · D+2
• County: — inherits STATE
• City: — inherits STATE

2024 reforms strengthened tenant protections; ramsey/hennepin courts paced moderate to slow.

Methodology + full state rankings →

ZIP-level market 55808

• Home prices YoY: -29.8%
• Active inventory: 35
• Price-to-rent: 7.2×

Monthly cashflow live

• Estimated rent: $984 medium
• Mortgage (P&I): −$445
• Tax from tax record: −$55 /mo · $664/yr
• Insurance: −$35
• HOA: −$0
• Vacancy / Maint / Mgmt: −$207
• Net cashflow: $241

Break-even live

Break-even rent $678

Max offer price $84,900

Occupancy floor 70%

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: $21,225
• Closing costs: $2,547
• Reserves months: —
• Total cash needed: —

Listing history 21 events

1. 2026-06-19
   days on market $84,900 Active 45 DOM
2. 2026-06-18
   pricedays on market $84,900 Active 44 DOM
3. 2026-06-17
   days on market $94,900 Active 43 DOM
4. 2026-06-16
   days on market $94,900 Active 42 DOM
5. 2026-06-15
   days on market $94,900 Active 41 DOM
6. 2026-06-14
   days on market $94,900 Active 39 DOM
7. 2026-06-13
   days on market $94,900 Active 38 DOM
8. 2026-06-10
   days on market $94,900 Active 36 DOM
9. 2026-06-09
   days on market $94,900 Active 35 DOM
10. 2026-06-08
    days on market $94,900 Active 34 DOM
11. 2026-06-07
    days on market $94,900 Active 33 DOM
12. 2026-06-05
    days on market $94,900 Active 30 DOM
13. 2026-06-03
    days on market $94,900 Active 29 DOM
14. 2026-06-02
    days on market $94,900 Active 28 DOM
15. 2026-06-01
    days on market $94,900 Active 27 DOM
16. 2026-05-31
    days on market $94,900 Active 26 DOM
17. 2026-05-30
    days on market $94,900 Active 25 DOM
18. 2026-05-04
    listed $99,900 Active 586-char remark
19. 2018-12-27
    soldstatus $32,500
20. 2018-12-17
    soldstatus $32,500 448-char remark

    Show marketing remark (448 chars)

    Good opportunity for a first time home buyer that is willing to invest in a little time to make it their's. Hardwood floors. House is dated just needs to be brought back to life. A lot of potential for a little investment. Ideal for the person that would like to be earning instead of just paying rent. Has many newer items within the last five years. 1 Roof 2 Water supply lines 3 Mudroom 4 Paved parking area 20' X 38' 5 Central air conditioning

21. 2018-10-26
    listed $35,000 448-char remark

    Show marketing remark (448 chars)

    Good opportunity for a first time home buyer that is willing to invest in a little time to make it their's. Hardwood floors. House is dated just needs to be brought back to life. A lot of potential for a little investment. Ideal for the person that would like to be earning instead of just paying rent. Has many newer items within the last five years. 1 Roof 2 Water supply lines 3 Mudroom 4 Paved parking area 20' X 38' 5 Central air conditioning

ⓘ 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: $664 · $55/mo
• Projected year-2 tax: $807 · $67/mo
• Expected delta: +$143/yr (+$12/mo · 21.6%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥91°F today · 13 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $11,808
• − Mortgage interest: −$4,756
• − Property taxes: −$664
• − Insurance: −$424
• − Repairs & maintenance: −$945
• − Management: −$945
• − Depreciation: −$2,470
• Taxable income: $1,605
• Est. tax owed @ 24.0%: −$385
• After-tax cash flow: $2,512/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: Duluth Public School District
• NCES district ID: 2711040
• Math proficiency: 44% ▼ -10.00%
• Reading proficiency: 55% ▼ -6.00%
• Median HH income: $45,692
• Composite: 41.92/100
• National rank: #3360
• State rank: #132 of 301 in MN

Livability — Duluth

• Score: 82/100
• State rank: #36
• US rank: #1060

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Duluth, MN
• City population: 71,097
• Population (ZIP): 5,325

Population outlook (St. Louis County) Hauer SSP2

• Today (2025): 202,411 people
• By 2030: 203,234 · +0.4%
• By 2040: 202,520 · +0.1%
• By 2050: 200,853 · -0.8%
• By 2075: 200,943 · -0.7%
• By 2100: 192,058 · -5.1%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Two or more races 6% Native American 3% Hispanic / Latino 1%
• Common ancestry: Portuguese 14% Romanian 8% Lithuanian 5%
• Foreign-born: 1% · Canada

Political lean MEDSL · St. Louis

• 2024 margin: D (+13.7) · D 55.9% · R 42.2% · Other 1.8%
• 2008→2024 swing: -18.8pp toward R · 2008: 32.5pp · 2024: 13.7pp
• All cycles: 2024: D+13.7 2020: D+15.6 2016: D+11.8 2012: D+29.6 2008: D+32.5

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -100.66%
• Current HPI: 237.4607
• Rent YoY: —
• Metro: —
• 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

+142.6% since first listed

6 events — show timeline

• 2026-06-18 Price Changed $84,900 LSAR
• 2026-05-28 Price Changed $94,900 LSAR
• 2026-05-04 Listed $99,900 LSAR
• 2018-12-27 Sold (Public Records) $32,500 Public Records
• 2018-12-17 Sold (MLS) $32,500 LSAR
• 2018-10-26 Listed $35,000 LSAR

Property tax history

+2.6%/yr

Latest (2026): $664 · +0.6% YoY. Source: county tax records.