1407 E 3rd St · Duluth, MN 55804

$289,900

4 bd · 2.0 ba · 2,362 sqft · MultiFamily public records · 4 Days on market

Built 1886 6,970 sqft lot $123/sqft · at area comps Est $240k · 21% over

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Why this score? — see what drove the C- 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 +24.3/30.0
• DSCR +7.8/10.0
• 1% rule +6.4/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• ARV discount +0.0/15.0
• 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

Well maintained Duplex with new roof and updated mechanicals including waste & water lines, boiler, and water-heater. Great view of Lake Superior from the sun room. Near public transportation. Long term renters in both upper and lower units, leases expire May 1, 2022.

Key facts

• Newer roof
• Updated furnace
• Off-street parking

Tags

• LAKE SUPERIOR VIEW
• ON-DEMAND WATER HEATER
• UPDATED FURNACE
• NEWER ROOF
• DETACHED 3-CAR GARAGE
• OFF-STREET PARKING

Property features AI

Finance

• Financial info: Unit rents: $950 for the 1-bedroom unit; $1,400 for the 3-bedroom unit

Exterior

• Parking: Detached garage; 3 garage spaces; Concrete parking and off-street parking
• Utilities: Public water; Public sewer
• Home design: Duplex (residential income); 2 stories
• Construction: Stucco construction; Stone foundation
• Exterior features: Rubber, asphalt, and shingle roof; 50 x 140 lot; 0.16-acre lot

Interior

• Bedrooms: One-unit: 1 bedroom; Second unit: 3 bedrooms
• Bathrooms: One-unit: 1 bathroom; Second unit: 1 bathroom
• Heating & cooling: Baseboard heating; Forced air heating; Natural gas and electric heating
• Interior features: Full basement; Basement laundry (in basement); Has view
• Laundry & utility: Laundry located in basement

What this means for you Summary

Snapshot

• This is a 2 × 2-bed/1.0-bath units multifamily listed at $290k.

Deal economics

• At list price, monthly cash flow is $583 ($7k/yr) — positive. Per door: $292/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $290k).
• Cap rate 8.7% 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: 99 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals leasing fast (median 13d on market — plan ~1-2 weeks tenant-placement turnaround); 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

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 5y 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.

Risks & watch-outs

• Watch-outs: built in 1886 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $289,900

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1886 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
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 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: 1.14% ✓
• Cap rate: 8.71%
• Cash-on-cash: 8.62%
• DSCR: 1.38
• GRM: 7.3

CMA / ARV

• ARV (median comp): $239,707
• List price: $289,900
• Delta: 20.94%
• Verdict: OVERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 4 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
1612 E 6th St	0.26mi	4/4.0	2,412 (+2%)	1mo	$240,000	$100	75
1319 E 3rd St	0.06mi	4/4.0	2,551 (+8%)	18mo	$388,000	$152	61
421 N 18th Ave Ave E	0.33mi	3/3.0 (-1)	2,276 (-4%)	13mo	$320,000	$141	58
705 E 6th St	0.65mi	4/3.0	2,464 (+4%)	9mo	$195,250	$79	51

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: -3.2%
• Equity multiple: 0.88×
• Total profit: $-9,777
• Equity at exit: $43,225

10-year hold

• IRR: 6.5%
• Equity multiple: 1.49×
• Total profit: $39,574
• Equity at exit: $25,065

Cash invested: $81,172 (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 55804

• Active inventory: 99
• Price-to-rent: 14.6×

Monthly cashflow live

• Estimated rent: $3,310 high
• Mortgage (P&I): −$1,520
• Tax from tax record: −$391 /mo · $4,690/yr
• Insurance: −$121
• HOA: −$0
• Vacancy / Maint / Mgmt: −$695
• Net cashflow: $583

Break-even live

Break-even rent $2,572

Max offer price $289,900

Occupancy floor 77%

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

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$3,310
Total (2 units)			$3,310

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: $72,475
• Closing costs: $8,697
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1821 E 1st St Duluth, MN	5.0	2.0	1662	$2,300	$1.38	13d	1	0.40mi
414 N 19th Ave E Duluth, MN	4.0	1.0	1900	$2,295	$1.21	13d	1	0.42mi
202 S 18th Ave E Duluth, MN	5.0	2.5	2372	$2,495	$1.05	13d	1	0.48mi
2125 E Superior St Unit 3 Duluth, MN	4.0	1.0	1622	$1,850	$1.14	13d	1	0.69mi
609 E 6th St Duluth, MN	5.0	2.0	1850	$1,795	$0.97	21d	1	0.74mi

Listing history 5 events

1. 2026-05-09
   status Pending 931-char remark
2. 2026-05-04
   listed $289,900 Active 931-char remark
3. 2021-10-12
   soldstatus $225,000
4. 2021-09-30
   soldstatus $225,000 274-char remark

   Show marketing remark (274 chars)

   Well maintained Duplex with new roof and updated mechanicals including waste & water lines, boiler, and water-heater. Great view of Lake Superior from the sun room. Near public transportation. Long term renters in both upper and lower units, leases expire May 1, 2022.

5. 2021-05-05
   listed $239,900 274-char remark

   Show marketing remark (274 chars)

   Well maintained Duplex with new roof and updated mechanicals including waste & water lines, boiler, and water-heater. Great view of Lake Superior from the sun room. Near public transportation. Long term renters in both upper and lower units, leases expire May 1, 2022.

ⓘ 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: $4,690 · $391/mo
• Projected year-2 tax: $4,690 · $391/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 ≥90°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: $39,720
• − Mortgage interest: −$16,239
• − Property taxes: −$4,690
• − Insurance: −$1,450
• − Repairs & maintenance: −$3,178
• − Management: −$3,178
• − Depreciation: −$8,433
• Taxable income: $2,553
• Est. tax owed @ 24.0%: −$613
• After-tax cash flow: $6,383/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
• City population: 71,097
• Population (ZIP): 16,018

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 (92%)
• Race & ethnicity: White 92% Two or more races 5% Hispanic / Latino 1% Asian 1%
• Common ancestry: Portuguese 14% Scottish 4% Romanian 4%
• Foreign-born: 3% · Canada
• Languages at home: 96% English-only · Spanish 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: ▼ -253.94%
• Current HPI: 199.4064
• 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

+20.9% since first listed

6 events — show timeline

• 2026-06-12 Sold (MLS) $290,000 LSAR
• 2026-05-09 Pending — LSAR
• 2026-05-04 Listed $289,900 LSAR
• 2021-10-12 Sold (Public Records) $225,000 Public Records
• 2021-09-30 Sold (MLS) $225,000 LSAR
• 2021-05-05 Listed $239,900 LSAR

Property tax history

+7.8%/yr

Latest (2026): $4,690 · +8.8% YoY. Source: county tax records.