Furnished Short-Term Rental
For Sale
$489,000
907 & 907 1/2 14th Avenue SW, Rochester, MN 55902
Currently operated as an Airbnb with a rental certificate and year-round occupancy.
Property Size3,077 SF
Price / SF$158.92
Days on Market28
Property Features for 907 & 907 1/2 14th Avenue SW
General Information
Standard status
Active
Size
3,077 SF
Property subtype
Multi-Family
Occupancy
90%
Additional Details
Furnished
Yes
Building Details
Year Built
1956
Listing Agency:
National Realty Guild
(952) 472-6200
Listed By:
Eric Eickhof
(952) 472-6200
Source:
Fultonrealty
Added: Aug 3
Changed: Aug 28
Last Checked: Aug 29 at 9:09AM
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 National Realty Guild
Investment Insights
Based on property information with market context.
This short-term rental property is currently operated as an Airbnb and includes the furnishings used in its present operation. A rental certificate is in place, supporting its existing short-term rental use.
The property reports 90% occupancy year-round. Built in 1956, it is located at 907 and 907 1/2 14th Avenue SW in Rochester, Minnesota, and is offered with its current furnishings.
The property reports 90% occupancy year-round. Built in 1956, it is located at 907 and 907 1/2 14th Avenue SW in Rochester, Minnesota, and is offered with its current furnishings.
Key Highlights
- 90% year‑round occupancy rate
- Rental certificate in place
- Currently operated as an Airbnb
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
$29,091
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
5.95%
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%
$581,820
$581.8K
Cap Rate 7%
$415,586
$415.6K
Cap Rate 9%
$323,233
$323.2K
Market Conditions
NOI Build-Up for 3,077 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
$55.4K $18.00/SF
− Vacancy
−$2.5K −$0.81/SF
EGI
$52.9K $17.19/SF
− OpEx
−$23.8K −$7.74/SF
NOI
$29.1K $9.45/SF
Area
Rochester, MN
Vacancy
4.50%
Lease Rate
$18.00 /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%
$581,820
Cap Rate 7%
$415,586
Cap Rate 9%
$323,233
Alternative Uses
Best Use
Apartment 5plus
$415.6K
$363.6K – $484.9K
NOI $29,091 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.19M
$1.04M – $1.38M
NOI $82,958 @ 7.0% cap · market cap 16.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
90%
Occupancy
Location Intelligence
Trade Area within ½ mile
765
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?
Short term rental property - Currently operated as an Airbnb with a rental certificate and year-round occupancy.
Where is this short term rental property located?
The property is located at 907 & 907 1/2 14th Avenue SW Rochester, MN.
What is the asking price?
The asking price for this property is $489,000.
What are key features of this property?
This property features: 90% year‑round occupancy rate; Rental certificate in place; Currently operated as an Airbnb
