Your National Resource For Duplex Ownership

National Resources for Duplex Owners

Welcome to DuplexChick, your online destination for duplex ownership information.

Whether you're thinking of buying your first duplex home, or an experienced investor looking to sell, DuplexChick can provide you with up-to-date market information, tips on investment property ownership, and when youíre ready to buy or sell, help you find a Realtor who specializes in these unique properties right in your area.

Considering Buying? See how a duplex specialist can help you get a better deal

Considering Buying?

While every Realtor can sell you a home, not every agent can do the necessary financial analysis to find a duplex that is a good investment. Click here for a neighborhood duplex specialist who can help you meet your financial goals.

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Considering Buying? See how a duplex specialist can help you get a better deal

Considering Buying?

Unlike single family home owners, duplex owners facing foreclosure must also contend with potential tax consequences. Whether you are an owner occupant or duplex investor enduring the stress of being behind on mortgage payments, or needing to sell even though you owe more than your duplex is worth, a short sale can help reduce damage to your credit and tax obligations.

During this stressful time, let one of our Realtors who is an expert carry the load.

Thinking of Selling?

What If I Need To Sell? Regardless of market conditions, learn the tips and tricks to maximize your equity!

Sign Up For Our Free Duplex Seller's Guide

Kari Lundin, Keller Williams Realty Integrity

7401 Metro Blvd Suite 350, Edina, MN 55439 tel. (612) 290-5998

Featured Articles

Foreclosure or Short Sale in Your Past? You May Be Able to Buy A Duplex 06.20.16

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House wrapped with Foreclosure tape front view

House wrapped with Foreclosure tape front view

If you lost your home to foreclosure or had no alternative but to do a short sale during the housing crisis that began in 2007, there’s good news. You may be eligible to buy again.

Each type of loan has a waiting period following a financial event that prevents a duplex or home buyer from securing financing prior to the end of that time.

  • Bankruptcy – Chapter 7 – To obtain an FHA or VA loan, you must wait two years from the date of the discharge. To obtain a conventional loan, you must wait four years.
  • Bankruptcy – Chapter 13 –With permission from the court, you must wait one year for an FHA or VA loan, and two years for a conventional mortgage.
  • Foreclosure – Your clock on this starts ticking on the date the deed transferred, not the date of the Sherriff’s Sale. For an FHA loan you must wait three years, the VA requires a waiting period of two years, and you must wait seven years.
  • Deed in Lieu – Three years after you transferred your property to the bank, you may obtain an FHA loan. The VA requires a bit less time, at two years. And a conventional loan requires a four year wait.
  • Short Sale – From the day you closed on the sale of your property, you must wait three years to obtain an FHA loan, two years for a VA loan, and 4 years to qualify for a conventional loan.

As you begin to consider the possibilities, you may consider that for many, buying and living in one unit of a duplex is a way to hedge against financial uncertainty. Income from the tenants helps offset not only the cost of home ownership, but usually, also reduces the owner occupants cost of living as well.

More often than not, the owner who lives in his or her duplex ends up paying less in “rent” than he or she had when renting from another landlord.

 

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Minneapolis Duplex Tenants May Become Harder To Find 06.13.16

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DUPLEX VACANCY Let’s talk about something we haven’t discussed in a while: vacancy rates.

First, the vacancy rate is the percentage of built units in an area that are currently vacant and for rent.

The keeper of the vacancy rates in Minneapolis and St Paul is a company called Marquette Advisors, who release quarterly reports, which they just did. It’s important to note while their data is not specific to duplexes, triplexes and small apartment buildings, there is generally a correlation between the two.

According to the recently released report, the vacancy report in the first quarter topped 3 percent. The average vacancy rate had been hovering near 2.3 percent for the last five years.

A vacancy rate of 5 percent is considered indicative of a balanced market.

So what does this mean to Minneapolis duplex owners?

That brings up “rent growth”, which is business speak for rent increases.

Rising vacancy rates mean less demand for rental units. This leads to smaller rent increases and, when vacancy rates pass the 5 percent mark, rent concessions from landlords. Think back to “first month free” and “free cable and internet” ads of a decade ago.

Higher vacancy rates mean less cash flow. Less cash flow not only means less money in your pocket, that smaller income stream may contribute to a slowing in the appreciation of the property, and a reduced value when you go to sell it.

With an expected 3900 new market-rate apartments expected to come into the market by year’s end, Marque
tte is predicting the average vacancy rate by year’s end will be somewhere between 3.6 and 3.8 percent, and rise above 4 percent next year.

Rent gains are expected to be moderate this year as well, with increases in the 2.5 – 3 percent range.

None of this means, of course, that the sky is falling. It’s just a subtle shift in the market to bear in mind as you make decisions about improving your property, leasing it, or perhaps, even selling it.

It remains a duplex sellers market in Minneapolis and St Paul. If you are considering selling, it may be a great time to do so.

 

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Minnneapolis Duplex Buyers and Sellers Near Their Limits 05.31.16

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duplex loan restrictionsIf you’re thinking of buying to owner occupy or selling a Minneapolis or St Paul duplex, you may think you can pay or ask any price in the world. After all, with an FHA insured loan, all a buyer needs is 3.5 percent down, right?

Not so fast.

Here’s a conversation we haven’t had in a long time.

FHA has limits to the size of the mortgage insurance they’ll provide.

While these numbers vary by where the property is located, it’s important to remember that there are caps.

In the Twin Cities seven county metro area, for example, FHA loan limits are:

  • Single Family – $326,600
  • Duplex – $418,100
  • Triplex – $505,400
  • Fourplex – $628,050

While these numbers don’t limit the amount you can spend, they do restrict the amount of the FHA insured mortgage you can get.  You are welcome to come up with a bigger down payment to make up the difference.

What do I mean? Well, If you write an offer on a duplex for $450,000, your minimum down payment is 3.5% or $15,750. The purchase price of $450,000 – your down payment of $15,750 leaves you with $434,250. FHA will lend you $418,100. $434,250 – $418,100 leaves you with an additional $16,150 in cash you must come up with to purchase the property.

This also impacts Minneapolis duplex, triplex and fourplex sellers. After all, the lower the down payment requirement is for a loan, the bigger the pool of prospective buyers you have. Less buyers means fewer people competing for the opportunity to purchase your property, which may impact value.

After nearly a decade of not having to worry about hitting the ceiling of FHA mortgage insurance, it’s important to be aware of how the reduced limits of the real estate crash may still effect Minneapolis duplex values today.

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