Residential Income Property with Daylight
For Sale
$320,000
345 2nd Avenue SW, Milaca, MN 56353
Two-story residential property with a full unfinished daylight basement and multiple heating systems.
Property Size2,268 SF
Price / SF$154.14
Days on Market15
Property Features for 345 2nd Avenue SW
General Information
Standard status
Active
Size
2,268 SF
Property subtype
Residential Income
Zoning
Residential-Multi-Family,Residential-Single Family
Net Operating Income
$28,561
Taxes and HOA fees
Annual Taxes
$3,434
Amenities
Natural Gas, Baseboard, Hot Water, Radiant
Full, Unfinished, Daylight
Asphalt, Garage Door Opener
Building Details
Building Size
2,268 SF
Year Built
1920
Stories
2
Listing Agency:
RE/MAX Advantage Plus
(320) 262-0483
Listed By:
Samantha Severson · License #40603177
(320) 262-0483
Source:
Evrealestate
Added: Jul 29
Changed: Aug 2
Last Checked: Aug 12 at 5:48AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX Advantage Plus
Investment Insights
Based on property information with market context.
Built in 1920, this residential income property includes a full, unfinished daylight basement and an asphalt exterior surface. Heating features include natural gas, baseboard, hot water, and radiant systems. The property also includes a garage door opener.
The residence is located at 345 2nd Avenue SW in Milaca, Minnesota, in Mille Lacs County. Zoning classifications include Residential-Multi-Family and Residential-Single Family. Access is described from Highway 23 and 4th Street via 2nd Avenue SW.
The residence is located at 345 2nd Avenue SW in Milaca, Minnesota, in Mille Lacs County. Zoning classifications include Residential-Multi-Family and Residential-Single Family. Access is described from Highway 23 and 4th Street via 2nd Avenue SW.
Key Highlights
- Residential‑Multi‑Family and Residential‑Single Family zoning
- Full, unfinished daylight basement
- Natural gas, baseboard, hot water, and radiant heating
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$27,859
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.71%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$557,180
$557.2K
Cap Rate 7%
$397,986
$398.0K
Cap Rate 9%
$309,544
$309.5K
Market Conditions
NOI Build-Up for 2,076 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$54.1K $26.04/SF
− Vacancy
−$3.4K −$1.64/SF
EGI
$50.7K $24.40/SF
− OpEx
−$22.8K −$10.98/SF
NOI
$27.9K $13.42/SF
Area
Mille Lacs County, MN
Vacancy
6.30%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$557,180
Cap Rate 7%
$397,986
Cap Rate 9%
$309,544
Alternative Uses
Best Use
Apartment 5plus
$398.0K
$348.2K – $464.3K
NOI $27,859 @ 7.0% cap · market cap 8.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$495.3K
$433.4K – $577.8K
NOI $34,670 @ 7.0% cap · market cap 10.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
296
Businesses Nearby
Explore this area
Business Placement
Demographics for 56353, MN
9,314
Population
4,048
Households
2.3
Avg Household Size
40
Median Age
17%
College-Educated
92%
High-School Grad
189.8 sq mi
ZIP Area
49
Density / Sq Mi
$77,170
Median Household Income
$41,946
Median Earnings
$882
Median Rent
$239,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-story residential property with a full unfinished daylight basement and multiple heating systems.
Where is this residential income property located?
The property is located at 345 2nd Avenue SW Milaca, MN.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: Residential‑Multi‑Family and Residential‑Single Family zoning; Full, unfinished daylight basement; Natural gas, baseboard, hot water, and radiant heating
