137 W Palm St · Duluth, MN 55811

$70,000

2 bd · 2.0 ba · 1,074 sqft · SingleFamily public records · 3 Days on market

Built 1893 3,049 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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• Rent growth +3.7/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Attention investors and seasoned buyers! This 2-bedroom, 2-bath home has a solid start with newer roof and siding already in place. The main level features a functional layout with a living room, dining room, and kitchen, bonus space ready for whatever your imagination can create, while upstairs offers two bedrooms and a full bath. Outside, is a 15x21 storage building that's in rough shape. With updates and finishing touches, this property has great potential to build equity, restore its charm, or turn into a profitable flip or rental. Conveniently located in Duluth close to shopping, amenities, and public transit.

Key facts

• Newer roof
• Storage building
• Newer siding

Tags

• NEWER ROOF
• NEWER SIDING
• FUNCTIONAL LAYOUT
• BONUS SPACE
• STORAGE BUILDING

Property features AI

Exterior

• Parking: No on-site parking
• Utilities: Public water; Public sewer
• Home design: Single-family detached home; One story
• Construction: Above-grade finished area; Below-grade finished area
• Exterior features: Metal, asphalt shingle roof; Corner lot; Paved city street frontage; Shed(s)

Interior

• Kitchen: Dishwasher; Range; Microwave; Refrigerator
• Bathrooms: 1 full bathroom; 1 half bathroom
• Heating & cooling: Forced air heating; Natural gas heating
• Interior features: Basement is full and unfinished
• Laundry & utility: Washer; Dryer

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath single-family listed at $70k.

Deal economics

• At list price, monthly cash flow is $1k ($18k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $70k).
• Cap rate 31.8% 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: Rents rising fast (+4.6%/yr); 206 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 67% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).
• This rent runs 39% of the median local income ($80k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $484 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 4.6% rent growth), your $20k cash investment doubles in ~2 years — after that, you're playing with house money.

Negotiation context

• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: property tax is 2.9% of price; built in 1893 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $70,000

Questions for the listing agent

1. Built in 1893 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
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: 3.71% ✓
• Cap rate: 31.78%
• Cash-on-cash: 91.01%
• DSCR: 5.05
• GRM: 2.2

CMA / ARV

• ARV (on-the-fly): $245,946
• Comps found: 12

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
137 W Palm St	0.00mi	2/1.5	1,086 (+1%)	0mo	$70,000	$64	96
148 W Central Entrance	0.04mi	2/1.0	1,020 (-5%)	4mo	$59,000	$58	82
129 W Quince St	0.16mi	3/1.0 (+1)	1,054 (-2%)	9mo	$175,900	$167	73
162 W Central Entrance	0.06mi	3/1.5 (+1)	1,134 (+6%)	17mo	$87,500	$77	67
128 W Quince St	0.19mi	3/1.8 (+1)	1,093 (+2%)	22mo	$250,000	$229	64
817 Maple Bend Dr	0.46mi	3/1.5 (+1)	1,125 (+5%)	2mo	$347,000	$308	62
29 W Ideal St	0.71mi	1/2.0 (-1)	1,068 (-1%)	2mo	$256,000	$240	59
30 W Linden St	0.23mi	3/1.0 (+1)	1,170 (+9%)	11mo	$285,000	$244	56
827 Robin Ave	0.53mi	3/1.0 (+1)	1,082 (+1%)	10mo	$228,000	$211	56
202 E Locust St	0.46mi	3/1.0 (+1)	1,152 (+7%)	11mo	$300,000	$260	48
516 W Quince St	0.43mi	3/1.0 (+1)	1,169 (+9%)	22mo	$231,500	$198	38
322 E Gilead St	0.73mi	2/3.0	944 (-12%)	21mo	$240,000	$254	24

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 · 4.6% rent growth · sell at horizon

5-year hold

• IRR: 93.6%
• Equity multiple: 5.47×
• Total profit: $87,664
• Equity at exit: $10,437

10-year hold

• IRR: 96.8%
• Equity multiple: 12.05×
• Total profit: $216,598
• Equity at exit: $6,052

Cash invested: $19,600 (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 55811

• Rents YoY: 4.6%
• Active inventory: 206
• Price-to-rent: 2.2×

Monthly cashflow live

• Estimated rent: $2,595 medium
• Mortgage (P&I): −$367
• Tax from tax record: −$167 /mo · $2,008/yr
• Insurance: −$29
• HOA: −$0
• Vacancy / Maint / Mgmt: −$545
• Net cashflow: $1,486

Break-even live

Break-even rent $713

Max offer price $70,000

Occupancy floor 38%

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: $17,500
• Closing costs: $2,100
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
505 W Orange St Duluth, MN	3.0	1.0	1022	$3,500	$3.42	43d	1	0.36mi
502 N Oak Bend Dr Duluth, MN	1.0–2.0	1.0	857	$1,549	$1.81	13d	1	0.92mi
3424 Eischen Ct Apt 301 Duluth, MN	3.0	1.0	1020	$2,195	$2.15	43d	1	1.39mi

Listing history 3 events

1. 2026-06-01
   statusdays on market $70,000 Pending 3 DOM
2. 2026-05-31
   days on market $70,000 Active 2 DOM
3. 2026-05-29
   listed $70,000 Active

ⓘ 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: $2,008 · $167/mo
• Projected year-2 tax: $2,008 · $167/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X · 22% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥91°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 2/10 Low 0 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $31,140
• − Mortgage interest: −$3,921
• − Property taxes: −$2,008
• − Insurance: −$350
• − Repairs & maintenance: −$2,491
• − Management: −$2,491
• − Depreciation: −$2,036
• Taxable income: $17,842
• Est. tax owed @ 24.0%: −$4,282
• After-tax cash flow: $13,556/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
• County: Saint Louis County · 115,152 people
• City population: 71,097
• Metro: Duluth, MN-WI
• Population (ZIP): 28,118
• Household income: $79,804
• Rent vs Own: 31.0% rent · 69.0% own
• Severe rent burden: 1019.0

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 (91%)
• Race & ethnicity: White 91% Two or more races 4% Hispanic / Latino 2% Asian 2% Black 1%
• Common ancestry: Portuguese 14% Romanian 7% Lithuanian 3%
• Foreign-born: 2% · Canada
• Languages at home: 97% English-only · Spanish 1% Other Indo-European 1%

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: ▼ -252.84%
• Current HPI: 198.2613
• Rent YoY: ▲ 4.60%
• Metro: Duluth, 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

1 event — show timeline

• 2026-05-29 Listed $70,000 LSAR

Property tax history

+5.2%/yr

Latest (2025): $2,008 · -1.5% YoY. Source: county tax records.