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.

Sign Up For Our Free Duplex Buyer's Guide

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

Winter Is A Great Time To Sell Your Minneapolis Duplex 02.02.18

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Just when it looked as if it couldn’t get any better for Minneapolis duplex sellers, along came January.

Yes, I said January. Not May or June.

January.

In the first 31 days of 2018, the Twin Cities quite literally experienced a shortage of duplexes for sale. There were just 186 properties available for sale on the entire MLS. For the record, the MLS covers the seven county metro area and a handful of out state and Wisconsin listings.

That is the fewest number of duplexes available during any month in over a decade by 14 percent.

If you remember your high school economics class, what happens to prices when demand exceeds supply? They go up, right?

The median sales price for the 88 duplexes, triplexes and fourplexes that sold in the first month for 2018 was $281,500. That means half sold for more, half sold for less.

Better yet, that number was $41,500 higher than the median sales price for those properties in 2017.

What happens when supply goes up? Prices level off or decline, right? What happens to real estate inventory in the spring? It usually goes up.

If you’re ready to retire as a landlord, or simply want to move your money to a different location or type of investment property, give me a call. Spring is just around the corner.

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Is Your Duplex Equity Earning All It Can? 01.31.18

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Many new and seasoned Twin Cities duplex and multi-family property investors decide whether to buy a property based on the cash on cash return they can get in their first year of ownership. Simply put, they want to know what the annual positive cash flow is, as a percentage, when compared to their down payment.

This is an important measure when you first acquire a property and many people know to use it. However, if you’re an established investor, have you ever thought, years later, to look at the return on your equity in exactly the same way?

Let’s say you paid $200,000 for your duplex in 2009. At that time, it had an annual positive cash flow of $4000, and your down payment was 20 percent ($40,000).  The cash flow, divided by the down payment gave you a 10 percent cash on cash return ($4000/$40,000).

Eight years later, the market has gone up. Your duplex is now worth $350,000. You have earned $150,000 in appreciation, and you’ve paid off just over $30,000 of your loan, as well as maintained the original down payment in the duplex. Totaled, you now have $220,000 in cash in the duplex.

Let’s say over that same time, rent has doubled, leaving you with a positive cash flow now of $8000 a year. This is great news. Or is it?

You now have $8000 in cash flow, divided by $220,000 in equity, resulting in a 3.6 percent cash on cash return. In other words, the cash return on your cash investment has dropped 6.4 percent, in spite of doubling your income!

What’s the remedy?

One path may be to refinance the property and take some of the equity out to purchase a second property. This may help increase your cash flow or, at the very least, allow you to have two properties rather than one where your tenants are paying it off for you and providing you with monthly income.

A second option in a hot duplex market may be to sell the duplex and do a 1031 exchange into either a larger multi-family or commercial property.

If you have a goal of your investments generating a specific minimum annual rate of return, it’s important to check the numbers annually. If you’d like help with the math, or an idea of value, call or email. I’d be happy to help you figure out if you’re money’s working as hard for you as you do for it.

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Hold Your Minneapolis Duplex Dollars Accountable 01.29.18

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While luxury living is all the rage in the brand new apartments being built in Minneapolis and surrounding suburbs, following suit with your Minneapolis duplex may not result in riches.

One of the most common mistakes many new landlords make is spending money on improvements that will not generate more rent.

When looking to make improvements on your investment property, a good rule of thumb is to ask yourself if you can increase rent as a result of it, and if so, how long would it take for that increase to cover the cost of the improvement?

For example, let’s say your duplex has worn out tub surrounds on the walls above the tub. And, frankly, they look terrible. The cost of replacing them with subway tile is $1000. You believe you can get an additional $50 a month as a result of the improvement. Well, $1000 divided by $50 means the tile will have paid for itself in 20 months.

While granite is the rage is higher-end properties, it may not be expected in a more affordable rental. It’s a nice finish, to be certain, but if your investment property is in a neighborhood that doesn’t command high dollar rents, ask yourself if a new, less expensive countertop could you have achieved the look you wanted with a more reasonably-priced option?

The vacancy rate in the Twin Cities is below three percent. Tenants are having a difficult time finding places to live. You should provide a clean, safe, well-maintained unit; but it may not need to look like the end of an episode of “Fixer Upper” either.

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