517 8th St SE · Rochester, MN 55904

$159,000

3 bd · 2.0 ba · 924 sqft · MultiFamily public records · 1 Days on market

Built 1920 6,446 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
• Livability +4.6/5.0
• Schools +4.1/10.0
• 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

This home was a duplex that was being converted to a single family home. The remodel was started and not completed. If you are looking for a project home this is the one for you.

Key facts

• 6,446 sq ft lot
• 2 garage spots
• Built 1920

Property features AI

Finance

• Other: Lot approximately 0.148 acres (about 40 x 50)
• Financial info: Annual taxes listed

Exterior

• Parking: Attached 2-car garage
• Utilities: City water; City sewer; Natural gas
• Home design: Residential property; One level
• Construction: Block foundation; Built footprint with 1,064 sq. ft. main living area
• Exterior features: Metal and vinyl exterior

Interior

• Bedrooms: 3 bedrooms
• Bathrooms: 2 full bathrooms
• Heating & cooling: Forced air heating; Central air conditioning
• Interior features: Basement with block construction

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath multifamily listed at $159k.

Deal economics

• At list price, monthly cash flow is $1k ($16k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $159k).
• Cap rate 16.6% 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.
• Zoned schools: Riverside Central Elementary (math 12% / reading 22%, grade F, #771 of 857 statewide, top 91%, 417 students, 79% FRL); Mayo Senior High (math 42% / reading 65%, grade C-, #104 of 471 statewide, top 22%, 1,862 students, 31% FRL) — zoned schools average 55% FRL vs 31% district-wide (25 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents rising (+2.1%/yr); 149 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals at typical pace (median 14d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,267 units permitted in Olmsted County in 2024 (915 in 5+ unit buildings).
• At $3,116/mo this rent would consume 49% 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 $1k of loan paydown is wiped out by about $5k 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.
• At projected returns (-3.0% appreciation + 2.1% rent growth), your $45k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• 2 sale attempts since 26y 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 $76k; list at $159k implies a 111% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

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

Recommended offer $159,000

Questions for the listing agent

1. Built in 1920 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. 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?
4. 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.
5. 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.
6. 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: 1.96% ✓
• Cap rate: 16.56%
• Cash-on-cash: 36.67%
• DSCR: 2.63
• GRM: 4.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

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

5-year hold

• IRR: 31.5%
• Equity multiple: 2.31×
• Total profit: $58,132
• Equity at exit: $23,707

10-year hold

• IRR: 38.1%
• Equity multiple: 4.39×
• Total profit: $151,117
• Equity at exit: $13,747

Cash invested: $44,520 (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: 149
• Price-to-rent: 8.5×

Monthly cashflow live

• Estimated rent: $3,116 medium
• Mortgage (P&I): −$834
• Tax from tax record: −$201 /mo · $2,414/yr
• Insurance: −$66
• HOA: −$0
• Vacancy / Maint / Mgmt: −$654
• Net cashflow: $1,360

Break-even live

Break-even rent $1,394

Max offer price $159,000

Occupancy floor 51%

Sensitivity live

Price	-10% $1,450	-5% $1,405	+0% $1,360	+5% $1,315	+10% $1,270
Rent	-10% $1,114	-5% $1,237	+0% $1,360	+5% $1,483	+10% $1,607
Rate	-1.0pp $1,440	-0.5pp $1,401	base $1,360	+0.5pp $1,319	+1.0pp $1,277

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

Units	Beds	Baths	Est. rent
▸ 2× units	3	2	$3,116
Total (2 units)			$3,116

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: $39,750
• Closing costs: $4,770
• Reserves months: —
• Total cash needed: —

Rent comps 20 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
524 10th St SE Rochester, MN	2.0	1.0	850	$1,475	$1.74	44d	1	0.31mi
513 13th Ave SE Rochester, MN	2.0	1.0	850	$1,550	$1.82	44d	1	0.44mi
705 1st Ave SW Rochester, MN	3.0	1.0–2.5	1135	$3,875	$3.41	14d	91	0.50mi
220 Broadway Ave S #911 Rochester, MN	2.0	2.0	1078	$1,750	$1.62	44d	1	0.55mi
449 E Center St Rochester, MN	1.0–3.0	1.0–2.0	1165	$3,795	$3.26	14d	40	0.62mi
511 3rd Ave SW Rochester, MN	2.0	1.0	647	$1,795	$2.77	14d	26	0.66mi
504 14th St SE #6 Rochester, MN	2.0	1.0	725	$995	$1.37	44d	1	0.81mi
401 Broadway Ave N Rochester, MN	2.0	1.0–2.0	799	$1,977	$2.47	14d	22	0.94mi
718 5th St SW Rochester, MN	2.0	1.0	722	$1,400	$1.94	14d	4	0.97mi
603 1st St SW Rochester, MN	2.0	1.0	512	$1,295	$2.53	14d	3	0.97mi
625 3rd St SW Rochester, MN	1.0–2.0	1.0	612	$1,395	$2.28	14d	3	0.98mi
1902 8 1/2 St SE Unit Andover 1902-D Rochester, MN	3.0	2.0	1100	$1,250	$1.14	44d	1	0.98mi
1537 6th Ave SE Unit 1523-D Rochester, MN	2.0	1.0	800	$975	$1.22	14d	1	0.99mi
400 1st Ave NW Rochester, MN	1.0–2.0	1.0–2.0	819	$1,510	$1.84	14d	7	0.99mi
2016 8 1/2 St SE Unit Andover 2016-A Rochester, MN	3.0	2.0	1100	$1,250	$1.14	44d	1	1.02mi
28 7th St NE Rochester, MN	2.0	1.0–2.0	789	$2,750	$3.49	21d	18	1.09mi
2041 14th St SE Rochester, MN	2.0	1.0	1012	$1,700	$1.68	21d	1	1.27mi
1732 2nd Ave SE Rochester, MN	2.0	1.0	780	$1,450	$1.86	14d	1	1.27mi
1505 Marion Rd SE Rochester, MN	1.0–3.0	1.0–2.0	864	$1,630	$1.89	14d	1	1.30mi
204 18th St SW Unit 5 Rochester, MN	2.0	1.5	1036	$1,545	$1.49	21d	1	1.40mi

Listing history 2 events

1. 2026-06-19
   remarks 178-char remark
2. 2026-06-19
   listed $159,000 Active 1 DOM

ⓘ 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: $2,414 · $201/mo
• Projected year-2 tax: $2,414 · $201/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 (unshaded) · 23% 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: $37,392
• − Mortgage interest: −$8,906
• − Property taxes: −$2,414
• − Insurance: −$795
• − Repairs & maintenance: −$2,991
• − Management: −$2,991
• − Depreciation: −$4,625
• Taxable income: $14,668
• Est. tax owed @ 24.0%: −$3,520
• After-tax cash flow: $12,805/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

+99.0% since first listed

5 events — show timeline

• 2026-06-19 Listed $159,000 NORTHSTARMLS as Distributed by MLS Grid
• 2000-09-15 Sold (Public Records) $75,500 Public Records
• 2000-09-15 Sold (MLS) $75,500 NORTHSTARMLS as Distributed by MLS Grid
• 2000-08-28 Listing Removed — NORTHSTARMLS as Distributed by MLS Grid
• 2000-05-24 Listed $79,900 NORTHSTARMLS as Distributed by MLS Grid

Property tax history

+9.7%/yr

Latest (2025): $2,414 · +1.1% YoY. Source: county tax records.