Updated Duplex with Two Three-Bedroom
For Sale
$189,900
424 W Birch Ave, Fergus Falls, MN 56537
Two residential units offer separate laundry arrangements, a covered front porch, and durable exterior improvements.
Property Size1,352 SF
Price / SF$140.46
Days on Market39
Property Features for 424 W Birch Ave
General Information
Standard status
Active
Size
1,352 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
2
Amenities
3 season front porch
laundry
Building Details
Year Built
1919
Listing Agency:
Keller Williams Realty Professionals
(218) 205-7351
Listed By:
Ryan Hanson · License #1104
Source:
Searchhousesnow
Added: Jul 21
Changed: Aug 28
Last Checked: Aug 25 at 5:25AM
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 Keller Williams Realty Professionals
Investment Insights
Based on property information with market context.
This Fergus Falls duplex contains 1,352 square feet and was built in 1919. The main-level residence includes three bedrooms and a three-season front porch, with laundry situated in the lower level. The upper residence also provides three bedrooms and has hookups for an in-unit laundry setup.
Property improvements include low-maintenance vinyl siding and architectural shingles, along with additional updates throughout the building. The property is located at 424 W Birch Ave in Fergus Falls, Minnesota, and presents a two-unit residential configuration with distinct living spaces and laundry features.
Property improvements include low-maintenance vinyl siding and architectural shingles, along with additional updates throughout the building. The property is located at 424 W Birch Ave in Fergus Falls, Minnesota, and presents a two-unit residential configuration with distinct living spaces and laundry features.
Key Highlights
- Two‑unit duplex at 424 W Birch Ave, Fergus Falls, MN 56537
- 1,352‑square‑foot property built in 1919
- Both units feature 3 bedrooms
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
$11,328
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
5.97%
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%
$226,560
$226.6K
Cap Rate 7%
$161,829
$161.8K
Cap Rate 9%
$125,867
$125.9K
Market Conditions
NOI Build-Up for 1,352 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
$17.0K $12.60/SF
− Vacancy
−$852 −$0.63/SF
EGI
$16.2K $11.97/SF
− OpEx
−$4.9K −$3.59/SF
NOI
$11.3K $8.38/SF
Area
Otter Tail County, MN
Vacancy
5.00%
Lease Rate
$12.60 /SF/Yr
Expense Ratio
30.00%
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%
$226,560
Cap Rate 7%
$161,829
Cap Rate 9%
$125,867
Alternative Uses
Best Use
Multifamily LT 5
$161.8K
$141.6K – $188.8K
NOI $11,328 @ 7.0% cap · market cap 5.97%
Second Best
Apartment 5plus
$149.7K
$131.0K – $174.7K
NOI $10,482 @ 7.0% cap · market cap 5.52%
Theoretical Best
Office A
$293.7K
$257.0K – $342.7K
NOI $20,559 @ 7.0% cap · market cap 10.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
666
Businesses Nearby
Explore this area
Business Placement
Demographics for 56537, MN
19,230
Population
9,498
Households
2
Avg Household Size
44
Median Age
30%
College-Educated
96%
High-School Grad
283.4 sq mi
ZIP Area
68
Density / Sq Mi
$62,279
Median Household Income
$40,272
Median Earnings
$840
Median Rent
$223,000
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two residential units offer separate laundry arrangements, a covered front porch, and durable exterior improvements.
Where is this duplex located?
The property is located at 424 W Birch Ave Fergus Falls, MN.
What is the asking price?
The asking price for this property is $189,900.
What are key features of this property?
This property features: Two‑unit duplex at 424 W Birch Ave, Fergus Falls, MN 56537; 1,352‑square‑foot property built in 1919; Both units feature 3 bedrooms
