1120 4th St SE · Rochester, MN 55904

$320,000

3 bd · 3.0 ba · 1,536 sqft · MultiFamily public records · 73 Days on market

Built 1925 3,746 sqft lot $208/sqft · 64% above area Est $293k · 9% over

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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 +18.2/30.0
• DSCR +5.7/10.0
• Livability +4.6/5.0
• 1% rule +4.3/10.0
• Schools +4.1/10.0
• ARV discount +3.4/15.0
• Rent growth +3.0/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (2-4 Unit). Listing-text estimate: 1 unit. estimate disagrees with records

Listing remarks MLS

Take advantage of a unique opportunity in southeast Rochester featuring R3 TOD (Transit-Oriented Development) zoning, designed to support future growth and higher-density housing options. This property includes an **adjacent lot, both included in the price**giving you added space and flexibility. Whether you’re looking to build, expand, or invest, the R3 TOD zoning offers valuable potential for development in a location positioned near transit and everyday conveniences. Located just minutes from downtown, shopping, dining, and transit routes, this property combines location, space, and long-term upside. Highlights: • Zoned R3 TOD (buildable, higher-density potential) • Adjacent lot included in price • Ideal for future development or investment • Close to downtown and transit access.

Key facts

• Updated electrical
• New carpeting
• Zoned r3

Tags

• INVESTMENT PROPERTY
• ZONED R3
• STRONG RENTAL POTENTIAL
• NEW APPLIANCES
• UPDATED ELECTRICAL
• NEW CARPETING

What this means for you Summary

Snapshot

• This is a 3-bed/3.0-bath multifamily listed at $320k.

Deal economics

• At list price, monthly cash flow is $285 ($3k/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 $297k (7.1% below list).
• Recommended offer: $297k (7.1% below list) — sets the bar for 1% rule.
• Cap rate 7.4% vs local median 3.5% in Rochester — 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 92/100 on livability (#1 in MN, #27 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, commute A+, employment A+.
• Rochester Public School District (urban): math 40% / reading 51% proficiency, ranked #152 of 301 in MN (top 50%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+2.1%/yr); 151 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 40% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• At $2,974/mo this rent would consume 46% of the median local household income ($77k/yr) (locally 864% 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 $10k of value loss. Plan a longer hold.
• Olmsted County population projected at +16% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 73 days — a 6% lower offer ($301k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts since 10y 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 $135k; list at $320k implies a 137% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $297,400 (7.1% below list)

Questions for the listing agent

1. It's been on market 73 days. Have you received any prior offers? Is the seller open to a 7% concession, seller financing, or rate buy-down credit?
2. Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-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?
6. 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?
7. 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.
8. 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.
9. 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: 0.93% ✗
• Cap rate: 7.36%
• Cash-on-cash: 3.82%
• DSCR: 1.17
• GRM: 9.0

CMA / ARV

• ARV (median comp): $293,497
• List price: $320,000
• Delta: 9.03%
• Verdict: FAIR
• Comps: 1 within 2.0 mi

Projected returns pro-forma

-3.0% appreciation · 2.1% rent growth · sell at horizon

5-year hold

• IRR: -11.3%
• Equity multiple: 0.59×
• Total profit: $-36,416
• Equity at exit: $47,713

10-year hold

• IRR: -3.3%
• Equity multiple: 0.78×
• Total profit: $-19,277
• Equity at exit: $27,668

Cash invested: $89,600 (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 55904

• Rents YoY: 2.1%
• Active inventory: 151
• Price-to-rent: 17.9×

Monthly cashflow live

• Estimated rent: $2,974 high
• Mortgage (P&I): −$1,678
• Tax from tax record: −$253 /mo · $3,036/yr
• Insurance: −$133
• HOA: −$0
• Vacancy / Maint / Mgmt: −$625
• Net cashflow: $285

Break-even live

Break-even rent $2,613

Max offer price $320,000

Occupancy floor 85%

Sensitivity live

Price	-10% $466	-5% $376	+0% $285	+5% $194	+10% $104
Rent	-10% $50	-5% $168	+0% $285	+5% $402	+10% $520
Rate	-1.0pp $446	-0.5pp $366	base $285	+0.5pp $202	+1.0pp $118

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

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$2,974
Total (2 units)			$2,974

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: $80,000
• Closing costs: $9,600
• Reserves months: —
• Total cash needed: —

Rent comps 20 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
123 11th Ave SE Unit 2 Rochester, MN	2.0	1.0	1150	$950	$0.83	22d	1	0.20mi
897 16th Ave SE Rochester, MN	4.0	1.5	1200	$1,395	$1.16	14d	1	0.53mi
449 E Center St Rochester, MN	1.0–3.0	1.0–2.0	1165	$3,795	$3.26	14d	40	0.54mi
308 15th Ave NE Rochester, MN	2.0	2.0	1344	$1,550	$1.15	22d	1	0.58mi
1902 8 1/2 St SE Unit Andover 1902-D Rochester, MN	3.0	2.0	1100	$1,250	$1.14	44d	1	0.71mi
220 Broadway Ave S #911 Rochester, MN	2.0	2.0	1078	$1,750	$1.62	44d	1	0.73mi
2016 8 1/2 St SE Unit Andover 2016-A Rochester, MN	3.0	2.0	1100	$1,250	$1.14	44d	1	0.76mi
826 21st Ave SE Rochester, MN	4.0	2.0	1250	$1,508	$1.21	14d	11	0.82mi
832 21st Ave SE Unit 21 Rochester, MN	4.0	2.0	1240	$1,495	$1.21	44d	1	0.86mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,875	$3.41	14d	91	0.88mi
401 Broadway Ave N Rochester, MN	2.0	1.0–2.0	799	$1,977	$2.47	14d	22	0.96mi
28 7th St NE Rochester, MN	2.0	1.0–2.0	789	$2,750	$3.49	22d	18	1.02mi
207 5th Ave SW Rochester, MN	3.0	2.0	1500	$2,100	$1.40	44d	1	1.12mi
801 6th Ave SW Rochester, MN	3.0	2.5	2160	$2,500	$1.16	22d	1	1.22mi
917 N Broadway Ave Rochester, MN	2.0	1.0	2000	$1,400	$0.70	44d	1	1.23mi
814 7th Ave SW Unit back Rochester, MN	3.0	1.0	1400	$3,000	$2.14	44d	1	1.27mi
619 2nd St NW Unit 2 Rochester, MN	3.0	1.5	1435	$1,575	$1.10	14d	1	1.28mi
1505 Marion Rd SE Rochester, MN	1.0–3.0	1.0–2.0	864	$1,630	$1.89	14d	1	1.33mi
809 1st St NW Rochester, MN	3.0	2.0	2030	$2,400	$1.18	14d	1	1.37mi
1508 2nd Ave SW Rochester, MN	2.0	2.0	1600	$1,995	$1.25	44d	1	1.49mi

Listing history 12 events

1. 2026-06-02
   days on market $320,000 Active 73 DOM
2. 2026-06-01
   days on market $320,000 Active 72 DOM
3. 2026-05-31
   days on market $320,000 Active 71 DOM
4. 2026-05-30
   days on market $320,000 Active 70 DOM
5. 2026-04-16
   price $320,000 847-char remark

   Show marketing remark (847 chars)

   Take advantage of a unique opportunity in southeast Rochester featuring R3 TOD (Transit-Oriented Development) zoning, designed to support future growth and higher-density housing options. This property includes an **adjacent lot, both included in the price**giving you added space and flexibility. Whether you’re looking to build, expand, or invest, the R3 TOD zoning offers valuable potential for development in a location positioned near transit and everyday conveniences. Located just minutes from downtown, shopping, dining, and transit routes, this property combines location, space, and long-term upside. Highlights: • Zoned R3 TOD (buildable, higher-density potential) • Adjacent lot included in price • Ideal for future development or investment • Close to downtown and transit access.

6. 2026-03-20
   listed $319,500 Active 847-char remark

   Show marketing remark (847 chars)

   Take advantage of a unique opportunity in southeast Rochester featuring R3 TOD (Transit-Oriented Development) zoning, designed to support future growth and higher-density housing options. This property includes an **adjacent lot, both included in the price**giving you added space and flexibility. Whether you’re looking to build, expand, or invest, the R3 TOD zoning offers valuable potential for development in a location positioned near transit and everyday conveniences. Located just minutes from downtown, shopping, dining, and transit routes, this property combines location, space, and long-term upside. Highlights: • Zoned R3 TOD (buildable, higher-density potential) • Adjacent lot included in price • Ideal for future development or investment • Close to downtown and transit access.

7. 2018-06-12
   soldstatus $135,000
8. 2016-03-10
   soldstatus $129,000
9. 2016-02-19
   historical
10. 2016-01-27
    listed $129,900 Active
11. 2002-01-18
    soldstatus $80,000
12. 2000-05-01
    soldstatus $70,000

ⓘ 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: $3,036 · $253/mo
• Projected year-2 tax: $3,310 · $276/mo
• Expected delta: +$274/yr (+$23/mo · 9.0%)

ⓘ 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 (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥98°F today · 15 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $35,688
• − Mortgage interest: −$17,925
• − Property taxes: −$3,036
• − Insurance: −$1,600
• − Repairs & maintenance: −$2,855
• − Management: −$2,855
• − Depreciation: −$9,309
• Taxable loss: −$1,892
• Est. tax savings @ 24.0%: +$454
• After-tax cash flow: $3,874/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: Rochester Public School District
• NCES district ID: 2731800
• Math proficiency: 40% ▼ -10.00%
• Reading proficiency: 51% ▼ -4.00%
• Median HH income: $66,540
• Composite: 40.6/100
• National rank: #3695
• State rank: #152 of 301 in MN

Livability — Rochester

• Score: 92/100
• State rank: #1
• US rank: #27

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Rochester, MN
• County: Olmsted County · 135,035 people
• City population: 135,035
• Metro: Rochester, MN
• Population (ZIP): 29,639
• Household income: $77,016
• Rent vs Own: 35.7% rent · 64.3% own
• Severe rent burden: 864.0

Population outlook (Olmsted County) Hauer SSP2

• Today (2025): 165,999 people
• By 2030: 172,425 · +3.9%
• By 2040: 183,785 · +10.7%
• By 2050: 192,981 · +16.3%
• By 2075: 215,284 · +29.7%
• By 2100: 224,887 · +35.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (74%)
• Race & ethnicity: White 74% Black 10% Hispanic / Latino 8% Two or more races 5% Asian 3%
• Hispanic origin (detail): Mexican 6%
• Common ancestry: Portuguese 11% Lithuanian 2% Italian 2%
• Foreign-born: 11% · Canada, China, Vietnam
• Languages at home: 84% English-only · Spanish 5% Other Asian/Pacific 3% Arabic 2%

Political lean MEDSL · Olmsted

• 2024 margin: D (+10.7) · D 54.3% · R 43.6% · Other 2.1%
• 2008→2024 swing: +7.4pp toward D · 2008: 3.3pp · 2024: 10.7pp
• All cycles: 2024: D+10.7 2020: D+10.7 2016: D+0.8 2012: D+3.2 2008: D+3.3

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -161.04%
• Current HPI: 267.168
• Rent YoY: ▲ 2.10%
• Metro: Rochester, MN
• 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

+357.1% since first listed

8 events — show timeline

• 2026-04-16 Price Changed $320,000 NORTHSTARMLS as Distributed by MLS Grid
• 2026-03-20 Listed $319,500 NORTHSTARMLS as Distributed by MLS Grid
• 2018-06-12 Sold (Public Records) $135,000 Public Records
• 2016-03-10 Sold (Public Records) $129,000 Public Records
• 2016-02-19 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2016-01-27 Listed $129,900 NORTHSTARMLS as Distributed by MLS Grid
• 2002-01-18 Sold (Public Records) $80,000 Public Records
• 2000-05-01 Sold (Public Records) $70,000 Public Records

Property tax history

+6.3%/yr

Latest (2025): $3,036 · +12.4% YoY. Source: county tax records.