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!

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Kari Lundin, Keller Williams Realty Integrity

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

Featured Articles

Minneapolis Duplex Market On A Stick 08.19.14

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Corn dogAs the markers of summer’s end approach in the form of back to school announcements and food on a stick, the Twin Cities duplex market shows no sign of letting up.

Twenty-two duplex, triplex and fourplex sellers accepted offers the week ending August 9, 2014.  Of these, 86.4 percent have equity in their properties. There weren’t any spectacularly expensive sales, and just two pended at list prices below $100,000. So, on average, the group left the market at a final list price of $214,075.

During the same week last year, 21 duplex owners accepted offers on their investment properties. While 90.5 percent of them did not need to involve the bank in negotiations, they sold at an average price of $205,174. While this is below this year’s pended price, it’s important to note sold prices in the current market may be 3-4 percent below the listed price.

There were 31 new listings the first full week of August.  As has been the trend over the last year, most (83.9 percent) are being sold by traditional sellers. There were 29 new listings for buyers to choose from last year during the week, and just 72.4 percent of them did not involve distressed property sellers.

The single family home market saw the number of New Listings rise 8.7 percent for the week. Meanwhile, Pending Sales decreased 5.6 percent. Those two metrics moving in opposite directions resulted in a 9.4 percent rise in inventory.

During July, the Median Sales Price for a single family home in the metro was up 3.4 percent to $215,000. It’s important to watch the Months Supply of Inventory, as it is an early indicator of a changing market. That measure was up 15.8 percent to 4.4 months. This may signal the return to a more balanced market, which is usually achieved when there is a 5 – 6 month supply.

A return to a balanced market, where buyers and sellers are on equal footing, should slow outlandish price increases and return to the market to a more measured, healthy pace.

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Duplex Sellers And Tenants Afraid Of The Dark 08.18.14

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MonsterMany duplex sellers and their tenants believe there’s a monster under their beds.

Sellers fear deciding to sell their duplex will either scare off the tenants they already have, or keep new tenants from moving into the building.

And many new and existing tenants worry  that new ownership will mean a sudden change in living; whether it be an immediate spike in rent or sudden change in rules.

In both cases, those fears are largely unfounded.

The reason?

The lease follows the property, not the owner. In other words, no matter who owns the property, they must honor the terms of any existing lease, unless the owner and tenant mutually agree to a change them.

So a tenant can’t move out until the lease expires. The landlord can’t change the amount of rent either.

The only thing that should change for the tenant is who they send rent checks to.

Granted, tenants may experience rent increases when that lease expires; especially if they are currently paying well below market rents. However, those tenants have no guarantee their current owner won’t raise rent at that time either.

And sellers can still expect their tenants to pay rent on time, and begin eviction proceedings if rent goes unpaid.

Explaining this to tenants in clear, understandable terms often goes a long way toward obtaining their cooperation in showing units while the property is on the market.

More importantly, doing so helps everyone involved sleep better at night.

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Duplex Sellers Revist The Past 07.28.14

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HistoryI’ve recently had to blow the dust off a conversation I used to have with Minneapolis and St Paul duplex sellers long ago.

The topic? Capital gains tax and depreciation recapture.

It’s a conversation I haven’t had since the market crashed in 2007.

Duplex owners, even those who owner occupy, must treat the rental portions of their properties like a business. As such, that portion of the building may be subject to taxes when the property is sold.

Is there a way around this?

Yes. Sellers may choose to do what’s known as a 1031 or Starker Exchange.

This allows you to trade the proceeds of your sale into another property. This may be another multifamily property, or it could also be something like farmland, or a single family rental property anywhere in the country.

Many people understand the principle of the exchange, but make the mistake of putting the proceeds of the sale in their bank account with the intention of buying something else with that money.

Unfortunately, doing an exchange that way is a taxable event.

In order to conform with the IRS’s guidelines, the money from the sale of your rental property must be placed in the hands of a qualified intermediary. That entity holds the money, then releases it to the title company where you close on the sale of your replacement property.

As you go through the process of preparing to put your duplex on the market, it’s as important to have a conversation with your tax professional as it is to have your leases in order.

Not doing so could cost you a lot of money.

 

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