403 2nd St · Austin, MN 55912

$310,000

7 bd · 5.7 ba · 3,833 sqft · MultiFamily public records · 166 Days on market

Built 1900 5,357 sqft 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
• Rent growth +5.0/5.0
• Livability +4.0/5.0
• Schools +2.5/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 6 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks MLS

Capitalize on Southern Minnesota’s growing healthcare and housing demand with this rare multi-unit investment opportunity in the heart of Austin. Centrally located and positioned for long-term appreciation, this property offers strong in-place cash flow, value-add potential, and flexibility in one of the region’s most stable rental markets. Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 2: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 3: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 4: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 5: 2 Bed / 1 Bath / Bonus Room / $750 month. An insulated top-floor attic, considered Unit 6, is already prepared for finishing and presents excellent future upside with the potential for an additional unit or expanded living space, subject to city approval. Owner currently pays all utilities. Conveniently located just minutes from downtown Austin, major employers, parks, shopping, and healthcare facilities, this property benefits from a strong rental location with continued demand growth. Whether expanding an investment portfolio or entering the multifamily market, this Austin asset presents an attractive combination of current income, expansion potential, and long-term value.

Key facts

• Strong cash flow
• Versatile bonus room
• Prime location

Tags

• STRONG CASH FLOW
• VERSATILE BONUS ROOM
• INSULATED TOP-FLOOR ATTIC
• PRIME LOCATION

What this means for you Summary

Snapshot

• This is a 4×1.0bd/1.0ba + 1×2.0bd/1.0ba + 1×1.3333333333333333bd/0.7ba units multifamily listed at $310k.

Deal economics

• At list price, monthly cash flow is $3k ($37k/yr) — positive. Per door: $515/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $310k).
• Recommended offer: $273k (12.0% below list) — sets the bar for market timing.
• Cap rate 18.2% vs local median 4.5% in Austin — 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 (#77 in MN, #1,829 nationally) — a professional / high-income tenant draw. Strengths: cost of living A+, housing A+, health & safety A+; Watch: schools C-, commute F.
• Austin Public School District (town): math 24% / reading 34% proficiency, ranked #267 of 301 in MN (top 89%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents rising fast (+11.6%/yr); 188 active listings in the ZIP; 53 units permitted in Mower County in 2024 (0 in 5+ unit buildings).
• At $6,489/mo this rent would consume 111% of the median local household income ($70k/yr) (locally 759% 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 $9k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 8.0% rent growth), your $87k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 166 days — a 12% lower offer ($273k) is reasonable based on typical stale-listing flexibility.
• 9 sale attempts since 27y 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 $218k; 43% above their basis — modest negotiation headroom, anchor on the comps not their cost.

Risks & watch-outs

• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $272,800 (12.0% below list)

Questions for the listing agent

1. It's been on market 166 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. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
5. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
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: 2.09% ✓
• Cap rate: 18.24%
• Cash-on-cash: 42.68%
• DSCR: 2.90
• GRM: 4.0

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 8.0% rent growth · sell at horizon

5-year hold

• IRR: 44.9%
• Equity multiple: 3.08×
• Total profit: $180,736
• Equity at exit: $46,222

10-year hold

• IRR: 53.0%
• Equity multiple: 7.53×
• Total profit: $566,811
• Equity at exit: $26,803

Cash invested: $86,800 (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 55912

• Home prices YoY: -34.4%
• Rents YoY: 11.6%
• Active inventory: 188
• Price-to-rent: 24.4×

Monthly cashflow live

• Estimated rent: $6,489 high
• Mortgage (P&I): −$1,626
• Tax from tax record: −$284 /mo · $3,408/yr
• Insurance: −$129
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,363
• Net cashflow: $3,087

Break-even live

Break-even rent $2,581

Max offer price $310,000

Occupancy floor 47%

Sensitivity live

Price	-10% $3,263	-5% $3,175	+0% $3,087	+5% $3,000	+10% $2,912
Rent	-10% $2,575	-5% $2,831	+0% $3,087	+5% $3,344	+10% $3,600
Rate	-1.0pp $3,244	-0.5pp $3,166	base $3,087	+0.5pp $3,007	+1.0pp $2,925

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

Units	Beds	Baths	Est. rent
▸ 4× units	1.0	1	$4,236
1× unit	2.0	1	$1,195
1× unit	1.3333333333333333	0.7	$1,059
Total (6 units)			$6,489

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: $77,500
• Closing costs: $9,300
• Reserves months: —
• Total cash needed: —

Listing history 34 events

1. 2026-06-19
   days on market $310,000 Active 166 DOM
2. 2026-06-18
   days on market $310,000 Active 165 DOM
3. 2026-06-17
   days on market $310,000 Active 164 DOM
4. 2026-06-16
   days on market $310,000 Active 163 DOM
5. 2026-06-15
   days on market $310,000 Active 162 DOM
6. 2026-06-14
   days on market $310,000 Active 160 DOM
7. 2026-06-12
   days on market $310,000 Active 159 DOM
8. 2026-06-09
   days on market $310,000 Active 156 DOM
9. 2026-06-08
   days on market $310,000 Active 155 DOM
10. 2026-06-07
    days on market $310,000 Active 154 DOM
11. 2026-06-05
    days on market $310,000 Active 151 DOM
12. 2026-06-02
    days on market $310,000 Active 149 DOM
13. 2026-06-01
    days on market $310,000 Active 148 DOM
14. 2026-05-31
    days on market $310,000 Active 147 DOM
15. 2026-05-30
    days on market $310,000 Active 146 DOM
16. 2026-05-01
    status Active 1246-char remark

    Show marketing remark (1246 chars)

    Capitalize on Southern Minnesota’s growing healthcare and housing demand with this rare multi-unit investment opportunity in the heart of Austin. Centrally located and positioned for long-term appreciation, this property offers strong in-place cash flow, value-add potential, and flexibility in one of the region’s most stable rental markets. Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 2: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 3: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 4: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 5: 2 Bed / 1 Bath / Bonus Room / $750 month. An insulated top-floor attic, considered Unit 6, is already prepared for finishing and presents excellent future upside with the potential for an additional unit or expanded living space, subject to city approval. Owner currently pays all utilities. Conveniently located just minutes from downtown Austin, major employers, parks, shopping, and healthcare facilities, this property benefits from a strong rental location with continued demand growth. Whether expanding an investment portfolio or entering the multifamily market, this Austin asset presents an attractive combination of current income, expansion potential, and long-term value.

17. 2026-04-29
    historical 1246-char remark

    Show marketing remark (1246 chars)

    Capitalize on Southern Minnesota’s growing healthcare and housing demand with this rare multi-unit investment opportunity in the heart of Austin. Centrally located and positioned for long-term appreciation, this property offers strong in-place cash flow, value-add potential, and flexibility in one of the region’s most stable rental markets. Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 2: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 3: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 4: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 5: 2 Bed / 1 Bath / Bonus Room / $750 month. An insulated top-floor attic, considered Unit 6, is already prepared for finishing and presents excellent future upside with the potential for an additional unit or expanded living space, subject to city approval. Owner currently pays all utilities. Conveniently located just minutes from downtown Austin, major employers, parks, shopping, and healthcare facilities, this property benefits from a strong rental location with continued demand growth. Whether expanding an investment portfolio or entering the multifamily market, this Austin asset presents an attractive combination of current income, expansion potential, and long-term value.

18. 2026-01-02
    listed $310,000 Active 1246-char remark

    Show marketing remark (1246 chars)

    Capitalize on Southern Minnesota’s growing healthcare and housing demand with this rare multi-unit investment opportunity in the heart of Austin. Centrally located and positioned for long-term appreciation, this property offers strong in-place cash flow, value-add potential, and flexibility in one of the region’s most stable rental markets. Unit 1: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 2: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 3: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 4: 1 Bed / 1 Bath / Bonus Room / $650 month. Unit 5: 2 Bed / 1 Bath / Bonus Room / $750 month. An insulated top-floor attic, considered Unit 6, is already prepared for finishing and presents excellent future upside with the potential for an additional unit or expanded living space, subject to city approval. Owner currently pays all utilities. Conveniently located just minutes from downtown Austin, major employers, parks, shopping, and healthcare facilities, this property benefits from a strong rental location with continued demand growth. Whether expanding an investment portfolio or entering the multifamily market, this Austin asset presents an attractive combination of current income, expansion potential, and long-term value.

19. 2025-06-02
    historical
20. 2024-11-11
    listed $310,000 Active
21. 2024-11-02
    historical
22. 2024-04-22
    listed $310,000 Active
23. 2024-03-02
    historical
24. 2023-08-03
    status Active
25. 2023-08-02
    historical
26. 2023-01-03
    listed $310,000 Active
27. 2023-01-02
    historical
28. 2022-06-24
    listed $310,000 Active
29. 2022-06-20
    historical
30. 2008-12-23
    soldstatus $217,500
31. 2004-09-01
    soldstatus $86,000
32. 2004-06-14
    listed $69,900
33. 1999-06-28
    soldstatus $95,893
34. 1999-03-09
    listed $105,900

ⓘ 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: $3,408 · $284/mo
• Projected year-2 tax: $3,440 · $287/mo
• Expected delta: +$32/yr (+$3/mo · 0.9%)

ⓘ 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 · 16 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $77,868
• − Mortgage interest: −$17,365
• − Property taxes: −$3,408
• − Insurance: −$1,550
• − Repairs & maintenance: −$6,229
• − Management: −$6,229
• − Depreciation: −$9,018
• Taxable income: $34,068
• Est. tax owed @ 24.0%: −$8,176
• After-tax cash flow: $28,873/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: Austin Public School District
• NCES district ID: 2703450
• Math proficiency: 24% ▼ -12.00%
• Reading proficiency: 34% ▼ -9.00%
• Median HH income: $43,818
• Composite: 24.75/100
• National rank: #7604
• State rank: #267 of 301 in MN

Livability — Austin

• Score: 80/100
• State rank: #77
• US rank: #1829

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Austin, MN
• County: Mower County · 29,632 people
• City population: 29,632
• Metro: Austin, MN
• Population (ZIP): 29,632
• Household income: $70,177
• Rent vs Own: 26.0% rent · 74.0% own
• Severe rent burden: 759.0

Population outlook (Mower County) Hauer SSP2

• Today (2025): 39,967 people
• By 2030: 40,204 · +0.6%
• By 2040: 40,509 · +1.4%
• By 2050: 40,841 · +2.2%
• By 2075: 42,029 · +5.2%
• By 2100: 42,272 · +5.8%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (67%)
• Race & ethnicity: White 67% Hispanic / Latino 16% Asian 8% Two or more races 7% Black 5%
• Hispanic origin (detail): Mexican 12%
• Common ancestry: Portuguese 16% Lithuanian 2% Iranian 2%
• Foreign-born: 15% · Canada, Philippines, China
• Languages at home: 76% English-only · Spanish 14% Other Asian/Pacific 5% German/W. Germanic 1%

Political lean MEDSL · Mower

• 2024 margin: R (+10.5) · D 43.9% · R 54.4% · Other 1.7%
• 2008→2024 swing: -34.1pp toward R · 2008: 23.6pp · 2024: -10.5pp
• All cycles: 2024: R+10.5 2020: R+5.8 2016: R+7.8 2012: D+22.7 2008: D+23.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -142.60%
• Current HPI: 271.4199
• Rent YoY: ▲ 11.62%
• Metro: Austin, 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

+192.7% since first listed

19 events — show timeline

• 2026-05-01 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2026-04-29 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2026-01-02 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2025-06-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2024-11-11 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-11-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2024-04-22 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2024-03-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2023-08-03 Relisted — NORTHSTARMLS as Distributed by MLS Grid
• 2023-08-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2023-01-03 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2023-01-02 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2022-06-24 Listed $310,000 NORTHSTARMLS as Distributed by MLS Grid
• 2022-06-20 Coming Soon — NORTHSTARMLS as Distributed by MLS Grid
• 2008-12-23 Sold (Public Records) $217,500 Public Records
• 2004-09-01 Sold (MLS) $86,000 NORTHSTARMLS as Distributed by MLS Grid
• 2004-06-14 Listed $69,900 NORTHSTARMLS as Distributed by MLS Grid
• 1999-06-28 Sold (MLS) $95,893 NORTHSTARMLS as Distributed by MLS Grid
• 1999-03-09 Listed $105,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

-10.3%/yr

Latest (2025): $3,408 · +40.6% YoY. Source: county tax records.