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

Is It A Duplex Or A Unicorn? 07.20.17

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The other day while doing a 3000 foot survey of the real estate available for sale in Minneapolis and St Paul, I stumbled into a duplex listed as a single family home.

Thinking I must be missing something, I called the listing agent for clarification

. Her explanation didn’t quite make sense.

She said that because the property had one property tax information identification number (PID), both she and her broker believed it should be listed as a single family home. Besides, she said, even though it was a side by side duplex, it would make a terrific, large single family home.

There are all sorts of things wrong with her information.

First, many people mistakenly believe “twin home” is another name for a duplex. Well, that’s a little like saying a horse and a unicorn are the same thing. “Twin home” is another name for townhouse; the only difference being that the former may share only one wall with a neighbor.

Duplexes are two homes, under one roof, with one property identification number, and one ownership entity. This is important because the bank will give the number of loans on a property equal to the number of PIDs.

Twin homes have separate PIDs. Both units are usually owned by separate parties, with their own loans.

Second, converting a side by side duplex to a single family home will not only involve the opening up of a load bearing wall, but even with the best contractors on the job, will likely result in an unorthodox floor plan.

Finally, and most importantly in this instance, the Realtor has most likely stacked the odds against her seller getting an offer on the duplex extremely low. Most people looking for multifamily properties in the Twin Cities are looking for them under the category of Multi Family homes. They are not looking in single family home listings.

This story underscores the importance of hiring an expert. If you’re considering selling your Minneapolis, St Paul, or suburban duplex, it’s in your best interest to have an experienced multifamily property Realtor helping you get the most money possible in the shortest amount of time.

If you’d like to talk with me about selling your duplex, feel free to fill out the contact form above or give me a call. I’d be glad to give you a hand.

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It’s A Great Time To Be A Minneapolis Duplex Buyer Or Seller 07.05.17

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Great news for duplex buyers and sellers!

If you read this morning’s Minneapolis Star Tribune,  you may have seen two articles that may affect your decision to either buy or sell a multifamily investment property in the Twin Cites any time in the next decade.

The first headline screamed the Twin Cities will need nearly 71,000 new apartments in the next 13 years in order to keep up with demand.  The story was based on a report from the National Multifamily Housing Council and National Apartment Associations.

It cited decreasing home ownership, international immigration, and delayed home purchases thanks to shifts in the timing of the drivers of home ownership, like getting married and having children.

Whether you’re thinking of becoming a real estate investor or already own and are considering buying more, this bodes well for the long-term return on your investment. With low interest rates and skyrocketing rents as a result of demand exceeding supply, it is still a good time to buy; despite rising prices and low inventory.

In the same section of today’s news, another story brought good news for Minneapolis and St Paul duplex, triplex and apartment sellers. The number of listings on the market for sale in May fell to a 14-year low. While there were 8,744 new listings, which was roughly the same number as last year, they sold so fast that by month’s end, there were 17 percent fewer than at the same time last year.

In other words, it’s also a GREAT time to be a seller.

If you’re considering buying, selling, or exploring the idea of investing in real estate, please give me a call or send an email. I’d be happy to help you find the path that’s right for you.

 

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What Every Minneapolis Duplex Seller Should Know About Equity 06.29.17

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For the last decade, so many duplex owners have found themselves owing the bank more than their property was worth that the words and phrases equity, capital gains tax and 1031 or Starker exchange have rarely appeared in this blog.

My how times have changed.

If you’ve never heard these phrases, you’re about to hear them a whole lot more.

The Internal Revenue Service views your duplex as an investment. And, to that end, if you make a profit on it when you sell, they would like you to give them a cut. Oh, by the way, if you depreciated it all during the time you owned it, they would also like you to give them a piece of that.

By the time it’s all said and done, that nice check you thought you’d get at closing goes from fat to thin in a hurry.

So what can you do about it?

Enter a tax deferred exchange, otherwise known as a 1031 or Starker Exchange.

A 1031 exchange allows you to “trade” your equity from the sale of one property for equity in another property.

This DOES NOT mean you need to find a property just like the one you’re selling, or that you and another seller must literally trade properties.

Rather, it means you must follow a very strict set of rules laid out by the IRS. They are:

  • Buy something of equal or greater value. It may be one property or two, but the sales price of your replacement property needs to be equal to or greater than the one you sold.
  • Don’t touch the money. Any time you touch money from the sale of an investment property, it’s known as “boot”. You will be taxed on whatever amount of proceeds you put in your pocket from the sale. If for example, you have $200,000 in equity and take $20,000 out of it to pay some bills, you will be taxed on the $20,000.
  • Give the money to a Qualified Intermediary. At closing, your proceeds from the sale need to be wired or given to someone known as a qualified intermediary. There are many companies who specialize in this, as well as title companies and attorney’s who may qualify to provide this service. For a small fee, they hold your money until you tell them to wire it as a down payment on your replacement property.
  • 45 days. From the day of closing, you have 45 calendar days to name up to three properties that you may want to purchase as replacements for the property you sold.
  • 180 days. You must successfully close on one of the three replacement properties no later than 180 days from the date you closed on the relinquished property.

Perhaps the best news of all in this is you can continue to exchange into bigger and bigger properties throughout your life. If you choose to cash out at any point, you will have to pay taxes and depreciation recapture back to the day you started this chain.

And if you leave the properties to your kids? All they pay is an inheritance tax.

Give me a call today to find out how much equity you would have to reinvest!

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