523 N 1st Ave Ave E #521 · Duluth, MN 55805

$229,000

4 bd · 2.0 ba · 2,208 sqft · MultiFamily · 136 Days on market

Built 1896 Fair condition 2,178 sqft lot $104/sqft · 7% below area Est $247k · 7% under ↓ 6% since listing

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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
• ARV discount +10.8/15.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• Rent growth +3.6/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Multi-family units

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

Listing remarks MLS

Great investment or owner-occupant opportunity in the heart of Duluth! This centrally located up/down duplex offers flexibility and solid income potential. The lower unit features 3 bedrooms, while the upper unit offers 2 bedrooms, a private balcony, and stunning lake views. Off-street parking is available on the side.

Key facts

• Stunning lake views
• Off street parking
• Private balcony

Tags

• PRIVATE BALCONY
• STUNNING LAKE VIEWS
• OFF STREET PARKING

What this means for you Summary

Snapshot

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $229k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $1k ($15k/yr) — positive. Per door: $618/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $229k).
• Recommended offer: $202k (12.0% below list) — sets the bar for market timing.
• Cap rate 12.8% 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 (+4.3%/yr); 41 active listings in the ZIP; 3 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); lower-income renter base — watch delinquency; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).
• At $3,568/mo this rent would consume 99% of the median local household income ($43k/yr) (locally 927% 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 $7k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $64k cash investment doubles in ~5 years — after that, you're playing with house money.

Negotiation context

• It's been on market 136 days — a 12% lower offer ($202k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1896 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $201,520 (12.0% below list)

Questions for the listing agent

1. It's been on market 136 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 1896 — 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: 1.56% ✓
• Cap rate: 12.77%
• Cash-on-cash: 23.13%
• DSCR: 2.03
• GRM: 5.3

CMA / ARV

• ARV (median comp): $247,318
• List price: $229,000
• Delta: -7.41%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
201 E 6th St Unit 1-3	0.11mi	5/3.0 (+1)	2,250 (+2%)	6mo	$245,000	$109	78
521-523 N 3rd Ave E	0.17mi	4/1.0	2,388 (+8%)	14mo	$235,000	$98	63
329 E 6th St	0.27mi	4/2.0	1,934 (-12%)	13mo	$243,000	$126	56
705 E 6th St	0.56mi	4/3.0	2,464 (+12%)	9mo	$195,250	$79	43

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 · 4.34% rent growth · sell at horizon

5-year hold

• IRR: 17.7%
• Equity multiple: 1.73×
• Total profit: $46,552
• Equity at exit: $34,145

10-year hold

• IRR: 27.1%
• Equity multiple: 3.54×
• Total profit: $162,691
• Equity at exit: $19,800

Cash invested: $64,120 (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 55805

• Home prices YoY: -27.1%
• Rents YoY: 4.3%
• Active inventory: 41
• Price-to-rent: 10.7×

Monthly cashflow live

• Estimated rent: $3,568 high
• Mortgage (P&I): −$1,201
• Tax est. 1.5%: −$286 /mo · $3,435/yr
• Insurance: −$95
• HOA: −$0
• Vacancy / Maint / Mgmt: −$749
• Net cashflow: $1,236

Break-even live

Break-even rent $2,003

Max offer price $229,000

Occupancy floor 60%

Sensitivity live

Price	-10% $1,394	-5% $1,315	+0% $1,236	+5% $1,157	+10% $1,078
Rent	-10% $954	-5% $1,095	+0% $1,236	+5% $1,377	+10% $1,518
Rate	-1.0pp $1,351	-0.5pp $1,294	base $1,236	+0.5pp $1,177	+1.0pp $1,116

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

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$3,568
Total (2 units)			$3,568

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: $57,250
• Closing costs: $6,870
• Reserves months: —
• Total cash needed: —

Rent comps 3 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
609 E 6th St Duluth, MN	5.0	2.0	1850	$1,795	$0.97	22d	1	0.45mi
100 N 5th Ave W Duluth, MN	3.0	1.0–2.0	1209	$3,299	$2.73	22d	7	0.61mi
100 N 5th Ave W Duluth, MN	3.0	1.0–2.0	1207	$3,999	$3.31	14d	1	0.61mi

Listing history 21 events

1. 2026-06-21
   days on market $229,000 Active 136 DOM
2. 2026-06-19
   days on market $229,000 Active 134 DOM
3. 2026-06-18
   days on market $229,000 Active 133 DOM
4. 2026-06-17
   days on market $229,000 Active 132 DOM
5. 2026-06-16
   days on market $229,000 Active 131 DOM
6. 2026-06-15
   days on market $229,000 Active 130 DOM
7. 2026-06-14
   days on market $229,000 Active 128 DOM
8. 2026-06-13
   days on market $229,000 Active 127 DOM
9. 2026-06-10
   days on market $229,000 Active 125 DOM
10. 2026-06-09
    days on market $229,000 Active 124 DOM
11. 2026-06-09
    price $229,000 Active 123 DOM
12. 2026-06-08
    days on market $249,000 Active 123 DOM
13. 2026-06-07
    days on market $249,000 Active 122 DOM
14. 2026-06-05
    days on market $249,000 Active 119 DOM
15. 2026-06-03
    days on market $249,000 Active 118 DOM
16. 2026-06-02
    days on market $249,000 Active 117 DOM
17. 2026-06-01
    days on market $249,000 Active 116 DOM
18. 2026-05-31
    days on market $249,000 Active 115 DOM
19. 2026-05-30
    days on market $249,000 Active 114 DOM
20. 2026-03-17
    price $249,000 320-char remark

    Show marketing remark (320 chars)

    Great investment or owner-occupant opportunity in the heart of Duluth! This centrally located up/down duplex offers flexibility and solid income potential. The lower unit features 3 bedrooms, while the upper unit offers 2 bedrooms, a private balcony, and stunning lake views. Off-street parking is available on the side.

21. 2026-02-05
    listed $265,000 Active 320-char remark

    Show marketing remark (320 chars)

    Great investment or owner-occupant opportunity in the heart of Duluth! This centrally located up/down duplex offers flexibility and solid income potential. The lower unit features 3 bedrooms, while the upper unit offers 2 bedrooms, a private balcony, and stunning lake views. Off-street parking is available on the side.

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 1/10 Low 7 d/yr ≥91°F today · 13 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: $42,816
• − Mortgage interest: −$12,828
• − Property taxes: −$3,435
• − Insurance: −$1,145
• − Repairs & maintenance: −$3,425
• − Management: −$3,425
• − Depreciation: −$6,662
• Taxable income: $11,896
• Est. tax owed @ 24.0%: −$2,855
• After-tax cash flow: $11,979/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 · 6 photos

Fair 45/100 Moderate rehab

This multi-family property in Duluth requires moderate rehabilitation to improve its condition and increase its value. Key areas for improvement include exterior siding, roof, landscaping, and HVAC systems.

Repairs flagged

• Major Exterior siding — Weathered and in need of repair.
• Major Roof — Missing shingles or damage.
• Major Landscaping — Overgrown and in need of maintenance.

Value-add opportunities

• Both Paint exterior and interior walls — Fresh paint enhances curb appeal and interior aesthetics.
• Both Replace exterior siding — New siding improves curb appeal and durability.
• Both Repair and replace roof — A new roof ensures structural integrity and energy efficiency.
• Both Landscaping and yard maintenance — A well-maintained yard enhances curb appeal and property value.
• Both HVAC maintenance and upgrade — A functional HVAC system ensures comfort and energy efficiency.
• Both Update kitchen and bathrooms — Modern kitchens and bathrooms attract buyers and renters alike.

Renovation cost estimate screening

Repair item	Severity	Est. cost
Exterior siding · Weathered and in need of repair.	Major	$15,000–50,000
Roof · Missing shingles or damage.	Major	$15,000–50,000
Landscaping · Overgrown and in need of maintenance.	Major	$15,000–50,000
Total estimated repair cost · 3 items		$45,000–150,000

Value-add ROI direction

• Both Paint exterior and interior walls — Fresh paint enhances curb appeal and interior aesthetics. ↑
• Both Replace exterior siding — New siding improves curb appeal and durability. ↑
• Both Repair and replace roof — A new roof ensures structural integrity and energy efficiency. ↑
• Both Landscaping and yard maintenance — A well-maintained yard enhances curb appeal and property value. ↑
• Both HVAC maintenance and upgrade — A functional HVAC system ensures comfort and energy efficiency. ↑
• Both Update kitchen and bathrooms — Modern kitchens and bathrooms attract buyers and renters alike. ↑

ⓘ 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: 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): 10,602
• Household income: $43,100
• Rent vs Own: 72.7% rent · 27.3% own
• Severe rent burden: 927.0

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 (84%)
• Race & ethnicity: White 84% Two or more races 8% Hispanic / Latino 4% Black 3% Asian 2% Native American 2%
• Common ancestry: Portuguese 13% Romanian 4% Scottish 2%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 1% Other Indo-European 1% Other Asian/Pacific 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: ▼ -92.92%
• Current HPI: 250.3056
• Rent YoY: ▲ 4.34%
• 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

-6.0% since first listed

2 events — show timeline

• 2026-03-17 Price Changed $249,000 LSAR
• 2026-02-05 Listed $265,000 LSAR