Two-Unit Licensed Duplex with Central
For Sale
$249,500
Pending
603 23rd Avenue SW, Rochester, MN 55902
Residential Income, Rochester, MN
Property Size1,638 SF
Lot Size0.11 Acres
Days on Market138
Property Features for 603 23rd Avenue SW
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Zoning description
Residential-Multi-Family
Bedrooms
4
Bathrooms
2
Full bathrooms
2
Rooms
Bedroom 1, Bathroom 1, Bathroom 2, Basement, Bedroom 3, Bedroom 4, Bedroom 2
Exterior features
Vinyl
Subdivision
Hillcrest Sub
Lot features
Public Transit (w/in 6 blks), Tree Coverage - Medium
Elementary school
Folwell
Middle school
John Adams
High school
Mayo
High school district
Rochester
Directions
From west 2nd Street SW turn left (South) on 23rd Ave, home near top of hill on right side of street.
Standard status
Pending
APN
640414042631
Size
1,638 SF
Lot size
0.11 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
3740
Utilities
Heating system
Forced Air
Amenities
central air conditioning
new appliances
Building Details
Year built
1900
Building materials
Frame
Roof type
Shingle
Listing Agency:
Keller Williams Premier Realty · Keller Williams Realty
(507) 424-4422
Listed By:
James John Clark
(507) 424-4422
Added: Apr 6
Changed: Aug 19
Last Checked: Aug 21 at 10:06AM
MLS# 7049727
Copyright © 2026 Northstar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This licensed two-unit duplex offers two separate units with central air conditioning. The property includes forced-air heating, a shingle roof, vinyl exterior, and frame construction, with a basement noted in the layout. Updates include new appliances, and extensive repairs and improvements have recently been completed, with additional updates currently in progress. The duplex licensing renewal is in progress.
Set on a 0.109-acre lot, the duplex was built in 1900. The room count includes four bedrooms and two bathrooms across the home, supporting flexible use for long-term rentals or owner-occupancy.
With separate units and central air, the property is positioned to support multiple living or rental setups while benefiting from the completed repair work and ongoing updates.
Set on a 0.109-acre lot, the duplex was built in 1900. The room count includes four bedrooms and two bathrooms across the home, supporting flexible use for long-term rentals or owner-occupancy.
With separate units and central air, the property is positioned to support multiple living or rental setups while benefiting from the completed repair work and ongoing updates.
Key Highlights
- Licensed duplex with renewal in progress, featuring two separate units
- Central air conditioning in both units
- 0.109‑acre lot with 1,638 square feet
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
$17,646
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
7.07%
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%
$352,920
$352.9K
Cap Rate 7%
$252,086
$252.1K
Cap Rate 9%
$196,067
$196.1K
Market Conditions
NOI Build-Up for 1,638 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
$26.5K $16.20/SF
− Vacancy
−$1.3K −$0.81/SF
EGI
$25.2K $15.39/SF
− OpEx
−$7.6K −$4.62/SF
NOI
$17.6K $10.77/SF
Area
Rochester, MN
Vacancy
5.00%
Lease Rate
$16.20 /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%
$352,920
Cap Rate 7%
$252,086
Cap Rate 9%
$196,067
Alternative Uses
Best Use
Multifamily LT 5
$252.1K
$220.6K – $294.1K
NOI $17,646 @ 7.0% cap · market cap 7.07%
Second Best
Apartment 5plus
$221.2K
$193.6K – $258.1K
NOI $15,486 @ 7.0% cap · market cap 6.21%
Theoretical Best
Office A
$630.9K
$552.0K – $736.0K
NOI $44,162 @ 7.0% cap · market cap 17.70%
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
328
Businesses Nearby
Explore this area
Business Placement
Demographics for 55902, MN
25,878
Population
11,954
Households
2.2
Avg Household Size
40
Median Age
66%
College-Educated
98%
High-School Grad
41.1 sq mi
ZIP Area
630
Density / Sq Mi
$111,879
Median Household Income
$68,869
Median Earnings
$1,580
Median Rent
$430,100
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 separate units with central air in a frame duplex with vinyl exterior and forced-air heat.
Where is this duplex located?
The property is located at 603 23rd Avenue SW Rochester, MN.
What is the asking price?
The asking price for this property is $249,500.
What are key features of this property?
This property features: Licensed duplex with renewal in progress, featuring two separate units; Central air conditioning in both units; 0.109‑acre lot with 1,638 square feet
