505 Spear Ave · Duluth, MN 55803

$284,900

3 bd · 2.0 ba · 1,221 sqft · SingleFamily public records · 35 Days on market

Built 1920 6,969 sqft lot $233/sqft · at area comps Est $272k · at est.

---

Why this score? — see what drove the D 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 +16.3/30.0
• ARV discount +5.4/15.0
• DSCR +5.1/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• 1% rule +4.0/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Completely updated and move-in ready, this charming bungalow at 505 Spear Ave offers 3 bedrooms, 2 bathrooms, and thoughtful upgrades throughout. The home features new flooring across multiple spaces, an updated primary bedroom with a spacious closet, and a bright, open layout with a large kitchen showcasing butcher block countertops, electric stove, dishwasher, and newer appliances. Enjoy a formal dining area and an oversized deck - perfect for entertaining - along with a fully fenced yard. Additional improvements include a new basement shower (3/4 bath), new basement stairs, newer washer and dryer, and vinyl windows. The exterior offers cedar shake siding on the home, vinyl siding on the garage, a detached 2-car garage plus additional parking pad, and a raised porch with new flooring. Situated on a private lot with great functionality inside and out, this home blends classic character with modern updates, just minutes from Morley Park and offering quick access to the scenic trails, nature, and year-round recreation of Hartley Park and Amity Park.

Key facts

• Cedar shake siding
• Oversized deck
• New basement shower

Tags

• UPDATED PRIMARY BEDROOM
• BUTCHERBLOCK COUNTERTOPS
• OVERSIZED DECK
• FULLY FENCED YARD
• NEW BASEMENT SHOWER
• CEDAR SHAKE SIDING

Property features AI

Exterior

• Parking: Attached or detached 2-car garage (2 garage spaces)
• Utilities: City water connected; City sewer connected; Electric service provided by Minnesota Power; Natural gas
• Home design: Residential property; One and one-half story design; Above-grade finished area about 1,225 square feet
• Construction: Poured concrete foundation (approx. 37 x 22 foundation dimensions); Built area / foundation area about 1,225
• Exterior features: Wood exterior; Full yard fencing; Lot roughly 0.16 acres (approx. 55 x 127)

Interior

• Kitchen: Kitchen on main level
• Bedrooms: 3 bedrooms (two on upper level, one on main level)
• Bathrooms: Main floor full bathroom; Lower level 3/4 bathroom
• Heating & cooling: Forced air heating; No central air
• Interior features: Full poured concrete basement; One and one-half levels
• Laundry & utility: Natural gas fuel for heating/utility

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath single-family listed at $285k.

Deal economics

• At list price, monthly cash flow is $157 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $256k (10.2% below list).
• Recommended offer: $256k (10.2% below list) — sets the bar for 1% rule.
• Cap rate 7.0% 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.
• Zoned schools: Congdon Elementary (math 71% / reading 76%, grade A, #41 of 857 statewide, top 5%, 452 students, 20% FRL); Ordean East Middle School (math 45% / reading 61%, grade C+, #53 of 258 statewide, top 22%, 989 students, 26% FRL); East High School (math 42% / reading 73%, grade C, #59 of 471 statewide, top 13%, 1,494 students, 23% FRL) — zoned schools average 23% FRL vs 39% district-wide (16 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 109 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 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 $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.

Negotiation context

• It's been on market 35 days — a 3% lower offer ($276k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 21y 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.
• Current owner paid $225k; 27% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1920 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $255,903 (10.2% below list)

Questions for the listing agent

1. It's been on market 35 days. Have you received any prior offers? Is the seller open to a 10% concession, seller financing, or rate buy-down credit?
2. Built in 1920 — 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. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
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 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: 0.90% ✗
• Cap rate: 6.95%
• Cash-on-cash: 2.36%
• DSCR: 1.11
• GRM: 9.3

CMA / ARV

• ARV (median comp): $272,302
• List price: $284,900
• Delta: 4.63%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 7 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
521 Sparkman Ave	0.09mi	3/1.0	1,157 (-5%)	7mo	$250,000	$216	77
552 Park St	0.23mi	3/1.0	1,220 (-0%)	10mo	$244,900	$201	77
555 Park St	0.26mi	2/1.0 (-1)	1,170 (-4%)	2mo	$312,000	$267	70
219 Mygatt Ave	0.25mi	2/1.0 (-1)	1,152 (-6%)	11mo	$325,000	$282	61
2346 Vermilion Rd	0.24mi	4/2.0 (+1)	1,360 (+11%)	23mo	$327,500	$241	46
111 Snively Rd	0.51mi	3/1.0	1,141 (-7%)	22mo	$275,000	$241	44
16 E St. Andrews St	0.42mi	4/2.0 (+1)	1,368 (+12%)	20mo	$335,000	$245	39

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: -12.6%
• Equity multiple: 0.55×
• Total profit: $-36,200
• Equity at exit: $42,480

10-year hold

• IRR: -3.5%
• Equity multiple: 0.76×
• Total profit: $-18,759
• Equity at exit: $24,633

Cash invested: $79,772 (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 55803

• Active inventory: 109
• Price-to-rent: 9.3×

Monthly cashflow live

• Estimated rent: $2,559 medium
• Mortgage (P&I): −$1,494
• Tax from tax record: −$252 /mo · $3,024/yr
• Insurance: −$119
• HOA: −$0
• Vacancy / Maint / Mgmt: −$537
• Net cashflow: $157

Break-even live

Break-even rent $2,360

Max offer price $284,900

Occupancy floor 89%

Sensitivity live

Price	-10% $318	-5% $238	+0% $157	+5% $76	+10% $-4
Rent	-10% $-45	-5% $56	+0% $157	+5% $258	+10% $359
Rate	-1.0pp $300	-0.5pp $229	base $157	+0.5pp $83	+1.0pp $8

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: $71,225
• Closing costs: $8,547
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3780 London Rd Duluth, MN	1.0–3.0	1.0–2.0	1312	$3,485	$2.66	14d	1	1.33mi

Listing history 17 events

1. 2026-06-03
   statusdays on market $284,900 Pending 35 DOM

   Show marketing remark (1064 chars)

   Completely updated and move-in ready, this charming bungalow at 505 Spear Ave offers 3 bedrooms, 2 bathrooms, and thoughtful upgrades throughout. The home features new flooring across multiple spaces, an updated primary bedroom with a spacious closet, and a bright, open layout with a large kitchen showcasing butcher block countertops, electric stove, dishwasher, and newer appliances. Enjoy a formal dining area and an oversized deck - perfect for entertaining - along with a fully fenced yard. Additional improvements include a new basement shower (3/4 bath), new basement stairs, newer washer and dryer, and vinyl windows. The exterior offers cedar shake siding on the home, vinyl siding on the garage, a detached 2-car garage plus additional parking pad, and a raised porch with new flooring. Situated on a private lot with great functionality inside and out, this home blends classic character with modern updates, just minutes from Morley Park and offering quick access to the scenic trails, nature, and year-round recreation of Hartley Park and Amity Park.

2. 2026-06-02
   days on market $284,900 Contingent - Inspection 34 DOM
3. 2026-06-01
   days on market $284,900 Contingent - Inspection 33 DOM
4. 2026-05-31
   days on market $284,900 Contingent - Inspection 32 DOM
5. 2026-05-30
   days on market $284,900 Contingent - Inspection 31 DOM
6. 2026-05-04
   historical Contingent - Inspection 1063-char remark
7. 2026-04-29
   listed $284,900 Active 1064-char remark

   Show marketing remark (1064 chars)

   Completely updated and move-in ready, this charming bungalow at 505 Spear Ave offers 3 bedrooms, 2 bathrooms, and thoughtful upgrades throughout. The home features new flooring across multiple spaces, an updated primary bedroom with a spacious closet, and a bright, open layout with a large kitchen showcasing butcher block countertops, electric stove, dishwasher, and newer appliances. Enjoy a formal dining area and an oversized deck - perfect for entertaining - along with a fully fenced yard. Additional improvements include a new basement shower (3/4 bath), new basement stairs, newer washer and dryer, and vinyl windows. The exterior offers cedar shake siding on the home, vinyl siding on the garage, a detached 2-car garage plus additional parking pad, and a raised porch with new flooring. Situated on a private lot with great functionality inside and out, this home blends classic character with modern updates, just minutes from Morley Park and offering quick access to the scenic trails, nature, and year-round recreation of Hartley Park and Amity Park.

8. 2026-04-29
   listed $284,900 Active 1063-char remark

   Show marketing remark (1064 chars)

   Completely updated and move-in ready, this charming bungalow at 505 Spear Ave offers 3 bedrooms, 2 bathrooms, and thoughtful upgrades throughout. The home features new flooring across multiple spaces, an updated primary bedroom with a spacious closet, and a bright, open layout with a large kitchen showcasing butcher block countertops, electric stove, dishwasher, and newer appliances. Enjoy a formal dining area and an oversized deck - perfect for entertaining - along with a fully fenced yard. Additional improvements include a new basement shower (3/4 bath), new basement stairs, newer washer and dryer, and vinyl windows. The exterior offers cedar shake siding on the home, vinyl siding on the garage, a detached 2-car garage plus additional parking pad, and a raised porch with new flooring. Situated on a private lot with great functionality inside and out, this home blends classic character with modern updates, just minutes from Morley Park and offering quick access to the scenic trails, nature, and year-round recreation of Hartley Park and Amity Park.

9. 2022-07-25
   soldstatus $225,000
10. 2022-07-14
    soldstatus $225,000

    Show marketing remark (811 chars)

    A character filled traditional home in Hunter's Park neighborhood! This charming home features a large living room, formal dining room, lovely updated kitchen, main floor bedroom, and a newly remodeled full bath. The upper level has two bedrooms with ample closet space. The lower level hosts a 3/4 bath, utility space, and tons of storage. Enjoy the backyard deck and a fully fenced yard! Be sure not to miss the 2+ car BEAUTIFUL garage! Seller's updates include a water heater, some new windows, freshly painted living/dining rooms, newly painted cabinets, exposed chimney brick in the kitchen, six-panel doors, and sheetrock (upper bedrooms). Only a few steps away from the Morley Park neighborhood park! Plus minutes from Trails in Hartley Park & Amity Park. Come take a look at this sweet home today!

11. 2022-05-31
    listed $225,000

    Show marketing remark (811 chars)

    A character filled traditional home in Hunter's Park neighborhood! This charming home features a large living room, formal dining room, lovely updated kitchen, main floor bedroom, and a newly remodeled full bath. The upper level has two bedrooms with ample closet space. The lower level hosts a 3/4 bath, utility space, and tons of storage. Enjoy the backyard deck and a fully fenced yard! Be sure not to miss the 2+ car BEAUTIFUL garage! Seller's updates include a water heater, some new windows, freshly painted living/dining rooms, newly painted cabinets, exposed chimney brick in the kitchen, six-panel doors, and sheetrock (upper bedrooms). Only a few steps away from the Morley Park neighborhood park! Plus minutes from Trails in Hartley Park & Amity Park. Come take a look at this sweet home today!

12. 2008-05-05
    soldstatus $117,951
13. 2007-04-09
    soldstatus $115,000
14. 2007-04-09
    soldstatus $117,950
15. 2005-06-01
    historical
16. 2005-05-03
    listed $147,900
17. 2001-07-31
    soldstatus $89,000

ⓘ 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: $3,024 · $252/mo
• Projected year-2 tax: $3,107 · $259/mo
• Expected delta: +$83/yr (+$7/mo · 2.8%)

ⓘ 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 1/10 Low 7 d/yr ≥89°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: $30,708
• − Mortgage interest: −$15,959
• − Property taxes: −$3,024
• − Insurance: −$1,424
• − Repairs & maintenance: −$2,457
• − Management: −$2,457
• − Depreciation: −$8,288
• Taxable loss: −$2,900
• Est. tax savings @ 24.0%: +$696
• After-tax cash flow: $2,579/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): 17,662
• Household income: $105,888
• Rent vs Own: 16.5% rent · 83.5% own
• Severe rent burden: 322.0

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 (96%)
• Race & ethnicity: White 96% Two or more races 2%
• Common ancestry: Portuguese 16% Romanian 7% Lithuanian 3%
• Foreign-born: 2% · China, Canada
• Languages at home: 97% English-only · Chinese 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: ▼ -363.34%
• Current HPI: 197.6712
• Rent YoY: —
• 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

+220.1% since first listed

14 events — show timeline

• 2026-06-03 Pending — LSAR
• 2026-06-03 Pending — NORTHSTARMLS as Distributed by MLS Grid
• 2026-05-04 Contingent — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-29 Listed $284,900 LSAR
• 2026-04-29 Listed $284,900 NORTHSTARMLS as Distributed by MLS Grid
• 2022-07-25 Sold (Public Records) $225,000 Public Records
• 2022-07-14 Sold (MLS) $225,000 LSAR
• 2022-05-31 Listed $225,000 LSAR
• 2008-05-05 Sold (Public Records) $117,951 Public Records
• 2007-04-09 Sold (Public Records) $117,950 Public Records
• 2007-04-09 Sold (Public Records) $115,000 Public Records
• 2005-06-01 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2005-05-03 Listed $147,900 NORTHSTARMLS as Distributed by MLS Grid
• 2001-07-31 Sold (Public Records) $89,000 Public Records

Property tax history

+6.9%/yr

Latest (2026): $3,024 · +4.8% YoY. Source: county tax records.