2502 W 3rd St Unit 2504 W 3rd St · Duluth, MN 55806

$250,000

5 bd · 3.0 ba · 2,920 sqft · MultiFamily · 114 Days on market

Built 1900 Fair condition 3,485 sqft lot $86/sqft · 22% above area Est $206k · 22% over ↓ 14% since listing

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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 +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• Schools +4.2/10.0
• Livability +4.1/5.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• 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: 1 unit. estimate disagrees with records

Listing remarks MLS

Investor Opportunity with Built-In Upside! Situated on a corner lot directly across from the park, this value-add property offers the potential for three income streams in one strategic location. The unfinished duplex has already been taken down to the studs with demo complete, creating a true blank slate for your vision. Layout plans are available in the photos and supplements, allowing you to move forward with a clear path to completion. Next door sits an occupied single-family rental providing immediate income while you finish the duplex. Once completed, the property has the potential to generate revenue from two duplex units plus the existing single-family home. The newly completed 20th Street bridge enhances accessibility and connectivity, making this location even more desirable for tenants and future occupants. In addition, the property is zoned Mixed-Use, opening the door to expanded possibilities beyond traditional residential rentals—whether that’s office, retail, live/work, or other income-producing concepts (buyer to verify intended use). Ideal for investors, contractors, or entrepreneurs looking to build equity and long-term cash flow in a thriving community. Strong fundamentals, prime positioning, and significant upside for the right buyer.

Key facts

• Across from the park
• Zoned mixed-use
• Corner lot

Tags

• CORNER LOT
• ACROSS FROM THE PARK
• ZONED MIXED-USE

What this means for you Summary

Snapshot

• This is a 5-bed/3.0-bath multifamily listed at $250k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $2k ($26k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $250k).
• Recommended offer: $228k (9.0% below list) — sets the bar for market timing.
• Cap rate 16.7% 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: 44 active listings in the ZIP; lower-income renter base — watch delinquency; 639 units permitted in St. Louis County in 2024 (338 in 5+ unit buildings).
• At $4,935/mo this rent would consume 138% of the median local household income ($43k/yr) (locally 506% 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 $8k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $70k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 114 days — a 9% lower offer ($228k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

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

Recommended offer $227,500 (9.0% below list)

Questions for the listing agent

1. It's been on market 114 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
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: 1.97% ✓
• Cap rate: 16.71%
• Cash-on-cash: 37.22%
• DSCR: 2.66
• GRM: 4.2

CMA / ARV

• ARV (median comp): $205,654
• List price: $250,000
• Delta: 21.56%
• Verdict: OVERPRICED
• Comps: 16 within 1.0 mi

Show comp detail 1 sale within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
2813 Wellington St	0.35mi	4/2.0 (-1)	2,728 (-7%)	4mo	$235,000	$86	61

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: 33.1%
• Equity multiple: 2.40×
• Total profit: $97,833
• Equity at exit: $37,276

10-year hold

• IRR: 40.1%
• Equity multiple: 4.76×
• Total profit: $263,538
• Equity at exit: $21,615

Cash invested: $70,000 (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 55806

• Active inventory: 44
• Price-to-rent: 12.9×

Monthly cashflow live

• Estimated rent: $4,935 high
• Mortgage (P&I): −$1,311
• Tax est. 1.5%: −$312 /mo · $3,750/yr
• Insurance: −$104
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,036
• Net cashflow: $2,171

Break-even live

Break-even rent $2,187

Max offer price $250,000

Occupancy floor 51%

Sensitivity live

Price	-10% $2,344	-5% $2,257	+0% $2,171	+5% $2,085	+10% $1,998
Rent	-10% $1,781	-5% $1,976	+0% $2,171	+5% $2,366	+10% $2,561
Rate	-1.0pp $2,297	-0.5pp $2,235	base $2,171	+0.5pp $2,106	+1.0pp $2,040

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

Units	Beds	Baths	Est. rent
▸ 2× units	2	1	$3,222
1× unit	3	1	$1,714
Total (3 units)			$4,935

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: $62,500
• Closing costs: $7,500
• Reserves months: —
• Total cash needed: —

Listing history 21 events

1. 2026-06-19
   days on market $250,000 Active 114 DOM
2. 2026-06-18
   days on market $250,000 Active 113 DOM
3. 2026-06-17
   days on market $250,000 Active 112 DOM
4. 2026-06-16
   days on market $250,000 Active 111 DOM
5. 2026-06-15
   days on market $250,000 Active 110 DOM
6. 2026-06-14
   days on market $250,000 Active 108 DOM
7. 2026-06-13
   days on market $250,000 Active 107 DOM
8. 2026-06-10
   days on market $250,000 Active 105 DOM
9. 2026-06-09
   days on market $250,000 Active 104 DOM
10. 2026-06-08
    days on market $250,000 Active 103 DOM
11. 2026-06-07
    days on market $250,000 Active 102 DOM
12. 2026-06-05
    days on market $250,000 Active 99 DOM
13. 2026-06-03
    days on market $250,000 Active 98 DOM
14. 2026-06-02
    days on market $250,000 Active 97 DOM
15. 2026-06-01
    days on market $250,000 Active 96 DOM
16. 2026-05-31
    days on market $250,000 Active 95 DOM
17. 2026-05-30
    days on market $250,000 Active 94 DOM
18. 2026-05-19
    price $250,000 1286-char remark

    Show marketing remark (1286 chars)

    Investor Opportunity with Built-In Upside! Situated on a corner lot directly across from the park, this value-add property offers the potential for three income streams in one strategic location. The unfinished duplex has already been taken down to the studs with demo complete, creating a true blank slate for your vision. Layout plans are available in the photos and supplements, allowing you to move forward with a clear path to completion. Next door sits an occupied single-family rental providing immediate income while you finish the duplex. Once completed, the property has the potential to generate revenue from two duplex units plus the existing single-family home. The newly completed 20th Street bridge enhances accessibility and connectivity, making this location even more desirable for tenants and future occupants. In addition, the property is zoned Mixed-Use, opening the door to expanded possibilities beyond traditional residential rentals—whether that’s office, retail, live/work, or other income-producing concepts (buyer to verify intended use). Ideal for investors, contractors, or entrepreneurs looking to build equity and long-term cash flow in a thriving community. Strong fundamentals, prime positioning, and significant upside for the right buyer.

19. 2026-04-22
    price $275,000 1286-char remark

    Show marketing remark (1286 chars)

    Investor Opportunity with Built-In Upside! Situated on a corner lot directly across from the park, this value-add property offers the potential for three income streams in one strategic location. The unfinished duplex has already been taken down to the studs with demo complete, creating a true blank slate for your vision. Layout plans are available in the photos and supplements, allowing you to move forward with a clear path to completion. Next door sits an occupied single-family rental providing immediate income while you finish the duplex. Once completed, the property has the potential to generate revenue from two duplex units plus the existing single-family home. The newly completed 20th Street bridge enhances accessibility and connectivity, making this location even more desirable for tenants and future occupants. In addition, the property is zoned Mixed-Use, opening the door to expanded possibilities beyond traditional residential rentals—whether that’s office, retail, live/work, or other income-producing concepts (buyer to verify intended use). Ideal for investors, contractors, or entrepreneurs looking to build equity and long-term cash flow in a thriving community. Strong fundamentals, prime positioning, and significant upside for the right buyer.

20. 2026-04-22
    price $275,900 1286-char remark

    Show marketing remark (1286 chars)

    Investor Opportunity with Built-In Upside! Situated on a corner lot directly across from the park, this value-add property offers the potential for three income streams in one strategic location. The unfinished duplex has already been taken down to the studs with demo complete, creating a true blank slate for your vision. Layout plans are available in the photos and supplements, allowing you to move forward with a clear path to completion. Next door sits an occupied single-family rental providing immediate income while you finish the duplex. Once completed, the property has the potential to generate revenue from two duplex units plus the existing single-family home. The newly completed 20th Street bridge enhances accessibility and connectivity, making this location even more desirable for tenants and future occupants. In addition, the property is zoned Mixed-Use, opening the door to expanded possibilities beyond traditional residential rentals—whether that’s office, retail, live/work, or other income-producing concepts (buyer to verify intended use). Ideal for investors, contractors, or entrepreneurs looking to build equity and long-term cash flow in a thriving community. Strong fundamentals, prime positioning, and significant upside for the right buyer.

21. 2026-02-25
    listed $289,900 Active 1286-char remark

    Show marketing remark (1286 chars)

    Investor Opportunity with Built-In Upside! Situated on a corner lot directly across from the park, this value-add property offers the potential for three income streams in one strategic location. The unfinished duplex has already been taken down to the studs with demo complete, creating a true blank slate for your vision. Layout plans are available in the photos and supplements, allowing you to move forward with a clear path to completion. Next door sits an occupied single-family rental providing immediate income while you finish the duplex. Once completed, the property has the potential to generate revenue from two duplex units plus the existing single-family home. The newly completed 20th Street bridge enhances accessibility and connectivity, making this location even more desirable for tenants and future occupants. In addition, the property is zoned Mixed-Use, opening the door to expanded possibilities beyond traditional residential rentals—whether that’s office, retail, live/work, or other income-producing concepts (buyer to verify intended use). Ideal for investors, contractors, or entrepreneurs looking to build equity and long-term cash flow in a thriving community. Strong fundamentals, prime positioning, and significant upside for the right buyer.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X · 0% chance over 30 yrs
• 🔥 Wildfire 3/10 Moderate
• 🌡 Heat 2/10 Low 7 d/yr ≥92°F today · 13 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: $59,220
• − Mortgage interest: −$14,004
• − Property taxes: −$3,750
• − Insurance: −$1,250
• − Repairs & maintenance: −$4,738
• − Management: −$4,738
• − Depreciation: −$7,273
• Taxable income: $23,468
• Est. tax owed @ 24.0%: −$5,632
• After-tax cash flow: $20,419/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.

Condition & rehab AI · 12 photos

Fair 45/100 Extensive rehab

This property is in fair condition with extensive exterior construction and cluttered interior spaces. It has the potential for significant value increase through completion of the exterior, organization and cleaning of interior spaces, and installation of new fixtures and HVAC systems.

Repairs flagged

• Minor Kitchen clutter — Cluttered kitchen can be cleaned and organized.
• Minor Bathroom clutter — Cluttered bathroom can be cleaned and organized.
• Major Exterior construction — Exterior is under construction and requires completion of siding and framing.
• Minor Interior organization — Interior areas are cluttered and need organization and cleaning.
• Unknown HVAC/mechanical systems — No photos of HVAC and mechanical systems are available to assess.

Value-add opportunities

• Both Complete exterior construction — Completing the exterior construction will improve the home's curb appeal and marketability.
• Both Organize and clean interior spaces — Organizing and cleaning the interior spaces will make the home more appealing and marketable.
• Both Install new flooring — New flooring will improve the home's appearance and increase its market value.
• Both Install new kitchen and bathroom fixtures — New kitchen and bathroom fixtures will improve the home's functionality and increase its market value.
• Both Install new HVAC and mechanical systems — Upgrading HVAC and mechanical systems will improve the home's comfort and energy efficiency, increasing its market value.

Renovation cost estimate screening

Repair item	Severity	Est. cost
Kitchen clutter · Cluttered kitchen can be cleaned and organized.	Minor	$500–3,000
Bathroom clutter · Cluttered bathroom can be cleaned and organized.	Minor	$500–3,000
Exterior construction · Exterior is under construction and requires completion of siding and framing.	Major	$15,000–50,000
Interior organization · Interior areas are cluttered and need organization and cleaning.	Minor	$500–3,000
HVAC/mechanical systems · No photos of HVAC and mechanical systems are available to assess.	Unknown	$500–3,000
Total estimated repair cost · 5 items		$17,000–62,000

Value-add ROI direction

• Both Complete exterior construction — Completing the exterior construction will improve the home's curb appeal and marketability. ↑
• Both Organize and clean interior spaces — Organizing and cleaning the interior spaces will make the home more appealing and marketable. ↑
• Both Install new flooring — New flooring will improve the home's appearance and increase its market value. ↑
• Both Install new kitchen and bathroom fixtures — New kitchen and bathroom fixtures will improve the home's functionality and increase its market value. ↑
• Both Install new HVAC and mechanical systems — Upgrading HVAC and mechanical systems will improve the home's comfort and energy efficiency, increasing its market value. ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

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): 9,356
• Household income: $42,833
• Rent vs Own: 57.9% rent · 42.1% own
• Severe rent burden: 506.0

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 (79%)
• Race & ethnicity: White 79% Two or more races 7% Black 7% Native American 5% Hispanic / Latino 3% Asian 1%
• Common ancestry: Portuguese 10% Romanian 5% Scottish 2%
• Foreign-born: 4% · Canada, China
• Languages at home: 93% English-only · Other Indo-European 2% Spanish 2% 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: ▼ -122.85%
• Current HPI: 195.9805
• 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

-13.8% since first listed

4 events — show timeline

• 2026-05-19 Price Changed $250,000 LSAR
• 2026-04-22 Price Changed $275,000 LSAR
• 2026-04-22 Price Changed $275,900 LSAR
• 2026-02-25 Listed $289,900 LSAR