506 3rd Ave NE · Roseau, MN 56751

$505,000

204 bd · 144.0 ba · 6,120 sqft · MultiFamily · 311 Days on market

Built 1967 Fair condition 0.48 ac 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 +4.0/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• Appreciation +1.7/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 12 units. estimate disagrees with records

Listing remarks MLS

This 12-unit apartment building has a mix of five 2-bedroom units and 7 1-bedroom units. Building consists of brick construction, on site laundry, boiler heat (paid by landlord), surface parking. Rents range from $510 to $600 with tenant responsible for electric. Overall performance could increase by implementing a Ratio Utility Billing System (RUBS) program to absorb some of the heat expense.

Key facts

• 0.48 acre lot
• Built 1967
• Listed 310 days

What this means for you Summary

Snapshot

• This is a 5×2bd/1ba + 7×1bd/1ba units multifamily listed at $505k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $5k ($60k/yr) — positive. Per door: $420/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $505k).
• Recommended offer: $444k (12.0% below list) — sets the bar for market timing.
• Cap rate 18.3% vs local median 3.5% in Roseau — 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 80/100 on livability (#80 in MN, #1,901 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities D+, commute F.
• Roseau Public School District (town): math 45% / reading 53% proficiency, ranked #125 of 301 in MN (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 17% free/reduced lunch — higher-income household profile.
• Market conditions: 42 active listings in the ZIP; 49 units permitted in Roseau County in 2024 (15 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $15k of value loss. Plan a longer hold.
• Roseau County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $141k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 311 days — a 12% lower offer ($444k) is reasonable based on typical stale-listing flexibility.

Recommended offer $444,400 (12.0% below list)

Questions for the listing agent

1. It's been on market 311 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Built in 1967 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. 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?
9. 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.
10. 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.
11. 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: 2.14% ✓
• Cap rate: 18.26%
• Cash-on-cash: 42.75%
• DSCR: 2.90
• GRM: 3.9

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 39.5%
• Equity multiple: 2.69×
• Total profit: $239,161
• Equity at exit: $75,297

10-year hold

• IRR: 45.9%
• Equity multiple: 5.40×
• Total profit: $622,038
• Equity at exit: $43,663

Cash invested: $141,400 (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 56751

• Home prices YoY: -3.0%
• Active inventory: 42
• Price-to-rent: 45.9×

Monthly cashflow live

• Estimated rent: $10,794 medium
• Mortgage (P&I): −$2,648
• Tax est. 1.5%: −$631 /mo · $7,575/yr
• Insurance: −$210
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,267
• Net cashflow: $5,037

Break-even live

Break-even rent $4,418

Max offer price $505,000

Occupancy floor 48%

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

Units	Beds	Baths	Est. rent
▸ 5× units	2	1	$4,585
▸ 7× units	1	1	$6,209
Total (12 units)			$10,794

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: $126,250
• Closing costs: $15,150
• Reserves months: —
• Total cash needed: —

Listing history 4 events

1. 2026-06-01
   days on market $505,000 Active 311 DOM
2. 2026-05-31
   days on market $505,000 Active 310 DOM
3. 2026-05-31
   days on market $505,000 Active 309 DOM
4. 2025-07-25
   listed $505,000 Active 396-char remark

   Show marketing remark (396 chars)

   This 12-unit apartment building has a mix of five 2-bedroom units and 7 1-bedroom units. Building consists of brick construction, on site laundry, boiler heat (paid by landlord), surface parking. Rents range from $510 to $600 with tenant responsible for electric. Overall performance could increase by implementing a Ratio Utility Billing System (RUBS) program to absorb some of the heat expense.

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 2/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥94°F today · 12 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 3/10 Moderate 3 unhealthy d/yr today · 3 by 30 yrs out

Taxation est. · year 1

• Rental income: $129,528
• − Mortgage interest: −$28,288
• − Property taxes: −$7,575
• − Insurance: −$2,525
• − Repairs & maintenance: −$10,362
• − Management: −$10,362
• − Depreciation: −$14,691
• Taxable income: $55,725
• Est. tax owed @ 24.0%: −$13,374
• After-tax cash flow: $47,074/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.

Condition & rehab AI · 10 photos

Fair 45/100 Moderate rehab

This 12-unit apartment building requires moderate renovations to improve its condition and increase its resale and rental value.

Repairs flagged

• Minor Kitchen cabinets — Aesthetic update needed.
• Minor Kitchen countertops — Clean and freshen up appearance.
• Minor Bathroom fixtures — Update to modernize the space.
• Moderate Roof — Signs of wear, may need replacement or repair.
• Moderate Exterior paint — Discoloration and wear, may need repainting.
• Moderate Flooring — Worn carpet, may need replacement or reupholstering.
• Moderate Paint — Faded paint, may need touch-up or repainting.
• Minor Windows — Clean and freshen up appearance.
• Minor HVAC unit — Update to more energy-efficient model.
• Minor Landscaping — Improve curb appeal with landscaping and plants.

Value-add opportunities

• Both Update kitchen cabinets and countertops — Modern kitchen will attract more renters and buyers.
• Both Replace worn carpet or flooring — Fresh flooring will improve both resale and rental value.
• Both Paint interior walls and exterior — Fresh paint will improve curb appeal and interior aesthetics.
• Both Replace HVAC unit — Energy-efficient HVAC will reduce utility costs and improve comfort.
• Both Improve landscaping — Landscaping will enhance curb appeal and attract more renters and buyers.
• Both Replace worn windows — New windows will improve energy efficiency and curb appeal.

Renovation cost estimate screening

Repair item	Severity	Est. cost
Kitchen cabinets · Aesthetic update needed.	Minor	$500–3,000
Kitchen countertops · Clean and freshen up appearance.	Minor	$500–3,000
Bathroom fixtures · Update to modernize the space.	Minor	$500–3,000
Roof · Signs of wear, may need replacement or repair.	Moderate	$3,000–15,000
Exterior paint · Discoloration and wear, may need repainting.	Moderate	$3,000–15,000
Flooring · Worn carpet, may need replacement or reupholstering.	Moderate	$3,000–15,000
Paint · Faded paint, may need touch-up or repainting.	Moderate	$3,000–15,000
Windows · Clean and freshen up appearance.	Minor	$500–3,000
HVAC unit · Update to more energy-efficient model.	Minor	$500–3,000
Landscaping · Improve curb appeal with landscaping and plants.	Minor	$500–3,000
Total estimated repair cost · 10 items		$15,000–78,000

Value-add ROI direction

• Both Update kitchen cabinets and countertops — Modern kitchen will attract more renters and buyers. ↑
• Both Replace worn carpet or flooring — Fresh flooring will improve both resale and rental value. ↑
• Both Paint interior walls and exterior — Fresh paint will improve curb appeal and interior aesthetics. ↑
• Both Replace HVAC unit — Energy-efficient HVAC will reduce utility costs and improve comfort. ↑
• Both Improve landscaping — Landscaping will enhance curb appeal and attract more renters and buyers. ↑
• Both Replace worn windows — New windows will improve energy efficiency and curb appeal. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Roseau Public School District
• NCES district ID: 2732250
• Math proficiency: 45% ▼ -16.00%
• Reading proficiency: 53% ▼ -12.00%
• Median HH income: $54,940
• Composite: 42.4/100
• National rank: #3232
• State rank: #125 of 301 in MN

Livability — Roseau

• Score: 80/100
• State rank: #80
• US rank: #1901

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Roseau, MN
• Population (ZIP): 5,776

Population outlook (Roseau County) Hauer SSP2

• Today (2025): 15,709 people
• By 2030: 15,559 · -1.0%
• By 2040: 15,168 · -3.4%
• By 2050: 14,539 · -7.4%
• By 2075: 13,430 · -14.5%
• By 2100: 11,713 · -25.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (90%)
• Race & ethnicity: White 90% Two or more races 5% Hispanic / Latino 2% Black 2%
• Common ancestry: Portuguese 29% Lithuanian 5% Scottish 5%
• Foreign-born: 4% · Canada, Jamaica
• Languages at home: 96% English-only · Spanish 2%

Political lean MEDSL · Roseau

• 2024 margin: Solid R (+49.3) · D 24.7% · R 74.0% · Other 1.3%
• 2008→2024 swing: -31.9pp toward R · 2008: -17.4pp · 2024: -49.3pp
• All cycles: 2024: R+49.3 2020: R+46.0 2016: R+46.3 2012: R+22.3 2008: R+17.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -6.59%
• Current HPI: 217.2504
• 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

1 event — show timeline

• 2025-07-25 Listed $505,000 GFAAR