1426-1428 E 1st St · Duluth, MN 55805

$475,000

20 bd · 25.0 ba · 4,828 sqft · MultiFamily public records · 303 Days on market

Built 1893 4,792 sqft lot $98/sqft · 18% above area Est $402k · 18% 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 +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 +3.6/5.0
• 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 (5+ Unit). Listing-text estimate: 5 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

Own a little piece of Duluth with this rare find 5 unit apartment complex near Lake Superior boardwalk. All units are rented and the roof have been recently replaced. Three studio units, a single one bedroom and a single three bedroom. Rents total $5400/month. Owner pays utilities. Beautiful hardwoods and spacious apartments ranging from 444 sq ft to 1090 sq ft. Near the University of Minnesota Duluth and College of St. Scholastica in Duluth’s East End. The East End offers a variety of parks, restaurants, shops, and cafes. Leif Erikson Park/Duluth Rose Garden offers access to exceptional views of Lake Superior, and close proximity to Lake walk and Downtown. Very near Chester Creek offering hikers stunning waterfall views and hiking. Possible Seller Financing Option

Key facts

• Near lake superior
• Duluth rose garden
• Variety of parks

Tags

• RECENTLY REPLACED ROOF
• NEAR LAKE SUPERIOR
• NEAR COLLEGE OF ST SCHOLASTICA
• EAST END NEIGHBORHOOD
• VARIETY OF PARKS
• DULUTH ROSE GARDEN

What this means for you Summary

Snapshot

• This is a 5 × 4-bed/1.0-bath units multifamily listed at $475k.

Deal economics

• At list price, monthly cash flow is $4k ($51k/yr) — positive. Per door: $852/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($9k rent vs $475k).
• Recommended offer: $418k (12.0% below list) — sets the bar for market timing.
• Cap rate 17.1% 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: Rents rising fast (+4.3%/yr); 42 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 $9,347/mo this rent would consume 260% of the median local household income ($43k/yr) (locally 927% 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 $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $133k cash investment doubles in ~3 years — after that, you're playing with house money.

Negotiation context

• It's been on market 303 days — a 12% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Current owner paid $225k; list at $475k implies a 111% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: built in 1893 — expect roof / HVAC / electrical / plumbing capex.

Recommended offer $418,000 (12.0% below list)

Questions for the listing agent

1. It's been on market 303 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 1893 — 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. 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?
8. 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.
9. 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.
10. 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: 17.05%
• Cash-on-cash: 38.42%
• DSCR: 2.71
• GRM: 4.2

CMA / ARV

• ARV (median comp): $402,269
• List price: $475,000
• Delta: 18.08%
• Verdict: OVERPRICED
• Comps: 6 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 4.34% rent growth · sell at horizon

5-year hold

• IRR: 36.0%
• Equity multiple: 2.56×
• Total profit: $207,086
• Equity at exit: $70,824

10-year hold

• IRR: 43.4%
• Equity multiple: 5.39×
• Total profit: $583,629
• Equity at exit: $41,069

Cash invested: $133,000 (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 55805

• Home prices YoY: -27.1%
• Rents YoY: 4.3%
• Active inventory: 42
• Price-to-rent: 21.2×

Monthly cashflow live

• Estimated rent: $9,347 medium
• Mortgage (P&I): −$2,491
• Tax from tax record: −$436 /mo · $5,238/yr
• Insurance: −$198
• HOA: −$0
• Vacancy / Maint / Mgmt: −$1,963
• Net cashflow: $4,259

Break-even live

Break-even rent $3,956

Max offer price $475,000

Occupancy floor 49%

Sensitivity live

Price	-10% $4,528	-5% $4,393	+0% $4,259	+5% $4,124	+10% $3,990
Rent	-10% $3,520	-5% $3,890	+0% $4,259	+5% $4,628	+10% $4,997
Rate	-1.0pp $4,498	-0.5pp $4,380	base $4,259	+0.5pp $4,136	+1.0pp $4,010

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

Units	Beds	Baths	Est. rent
▸ 5× units	4	1	$9,345
Total (5 units)			$9,347

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: $118,750
• Closing costs: $14,250
• Reserves months: —
• Total cash needed: —

Listing history 22 events

1. 2026-06-19
   days on market $475,000 Active 303 DOM
2. 2026-06-18
   days on market $475,000 Active 302 DOM
3. 2026-06-17
   days on market $475,000 Active 301 DOM
4. 2026-06-16
   days on market $475,000 Active 300 DOM
5. 2026-06-15
   days on market $475,000 Active 299 DOM
6. 2026-06-14
   days on market $475,000 Active 297 DOM
7. 2026-06-13
   days on market $475,000 Active 296 DOM
8. 2026-06-10
   days on market $475,000 Active 294 DOM
9. 2026-06-09
   days on market $475,000 Active 293 DOM
10. 2026-06-08
    days on market $475,000 Active 292 DOM
11. 2026-06-07
    days on market $475,000 Active 291 DOM
12. 2026-06-05
    days on market $475,000 Active 288 DOM
13. 2026-06-03
    days on market $475,000 Active 287 DOM
14. 2026-06-02
    days on market $475,000 Active 286 DOM
15. 2026-06-01
    days on market $475,000 Active 285 DOM
16. 2026-05-31
    days on market $475,000 Active 284 DOM
17. 2026-05-30
    days on market $475,000 Active 283 DOM
18. 2026-05-08
    price $475,000 781-char remark

    Show marketing remark (781 chars)

    Own a little piece of Duluth with this rare find 5 unit apartment complex near Lake Superior boardwalk. All units are rented and the roof have been recently replaced. Three studio units, a single one bedroom and a single three bedroom. Rents total $5400/month. Owner pays utilities. Beautiful hardwoods and spacious apartments ranging from 444 sq ft to 1090 sq ft. Near the University of Minnesota Duluth and College of St. Scholastica in Duluth’s East End. The East End offers a variety of parks, restaurants, shops, and cafes. Leif Erikson Park/Duluth Rose Garden offers access to exceptional views of Lake Superior, and close proximity to Lake walk and Downtown. Very near Chester Creek offering hikers stunning waterfall views and hiking. Possible Seller Financing Option

19. 2025-11-05
    price $500,000 781-char remark

    Show marketing remark (781 chars)

    Own a little piece of Duluth with this rare find 5 unit apartment complex near Lake Superior boardwalk. All units are rented and the roof have been recently replaced. Three studio units, a single one bedroom and a single three bedroom. Rents total $5400/month. Owner pays utilities. Beautiful hardwoods and spacious apartments ranging from 444 sq ft to 1090 sq ft. Near the University of Minnesota Duluth and College of St. Scholastica in Duluth’s East End. The East End offers a variety of parks, restaurants, shops, and cafes. Leif Erikson Park/Duluth Rose Garden offers access to exceptional views of Lake Superior, and close proximity to Lake walk and Downtown. Very near Chester Creek offering hikers stunning waterfall views and hiking. Possible Seller Financing Option

20. 2025-08-20
    listed $550,000 Active 781-char remark

    Show marketing remark (781 chars)

    Own a little piece of Duluth with this rare find 5 unit apartment complex near Lake Superior boardwalk. All units are rented and the roof have been recently replaced. Three studio units, a single one bedroom and a single three bedroom. Rents total $5400/month. Owner pays utilities. Beautiful hardwoods and spacious apartments ranging from 444 sq ft to 1090 sq ft. Near the University of Minnesota Duluth and College of St. Scholastica in Duluth’s East End. The East End offers a variety of parks, restaurants, shops, and cafes. Leif Erikson Park/Duluth Rose Garden offers access to exceptional views of Lake Superior, and close proximity to Lake walk and Downtown. Very near Chester Creek offering hikers stunning waterfall views and hiking. Possible Seller Financing Option

21. 2017-08-17
    soldstatus $225,000
22. 2001-07-27
    soldstatus $100,000

ⓘ 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: $5,238 · $436/mo
• Projected year-2 tax: $5,279 · $440/mo
• Expected delta: +$41/yr (+$3/mo · 0.8%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 2/10 Low 7 d/yr ≥90°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: $112,164
• − Mortgage interest: −$26,607
• − Property taxes: −$5,238
• − Insurance: −$2,375
• − Repairs & maintenance: −$8,973
• − Management: −$8,973
• − Depreciation: −$13,818
• Taxable income: $46,179
• Est. tax owed @ 24.0%: −$11,083
• After-tax cash flow: $40,022/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
• County: Saint Louis County · 115,152 people
• City population: 71,097
• Metro: Duluth, MN-WI
• Population (ZIP): 10,602
• Household income: $43,100
• Rent vs Own: 72.7% rent · 27.3% own
• Severe rent burden: 927.0

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 (84%)
• Race & ethnicity: White 84% Two or more races 8% Hispanic / Latino 4% Black 3% Asian 2% Native American 2%
• Common ancestry: Portuguese 13% Romanian 4% Scottish 2%
• Foreign-born: 2% · Canada
• Languages at home: 96% English-only · Spanish 1% Other Indo-European 1% Other Asian/Pacific 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: ▼ -92.92%
• Current HPI: 250.3056
• Rent YoY: ▲ 4.34%
• 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

+375.0% since first listed

5 events — show timeline

• 2026-05-08 Price Changed $475,000 LSAR
• 2025-11-05 Price Changed $500,000 LSAR
• 2025-08-20 Listed $550,000 LSAR
• 2017-08-17 Sold (Public Records) $225,000 Public Records
• 2001-07-27 Sold (Public Records) $100,000 Public Records

Property tax history

+3.9%/yr

Latest (2025): $5,238 · -1.0% YoY. Source: county tax records.