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

Vacant or Full? How Should You Sell Your Minneapolis Duplex? 12.05.16

Comments Off on Vacant or Full? How Should You Sell Your Minneapolis Duplex?

Empty DuplexI am often asked by Minneapolis and St Paul duplex sellers who are thinking about putting their property on the market whether it’s better to have the building leased, or a vacant unit when it goes up for sale.

The best answer is, it depends. If your property is one an owner occupant may find appealing, know that it is a requirement for FHA insured mortgages that the buyer be able to move in within 60 days of closing. If both your units are leased, you have made it difficult for any owner occupant to consider your duplex; and right now, that’s a large percentage of today’s duplex buyers.

So should you just leave it vacant? This certainly makes showings easier and gives you a chance to put it in tip top shape. It also provides a new owner with an opportunity to lease it at market rent,. However, if it’s a financial burden to you, it isn’t necessary.

One option may be to have a tenants or tenants on month to month leases. This may concern residents, as they frequently believe that if the duplex goes up for sale, they won’t have time to find a place to live.

Clearly explaining the process to tenants may help alleviate these fears. Most lenders are taking 30-45 days to complete the funding of a loan on a property. Additionally, standard lease language usually requires tenants to receive 60 days notice before being required to move.

Duplex sellers should never agree to give a tenant notice until the day of closing. After all, if you tell a tenant to leave early, and the buyer fails to perform on the purchase, you’re left with a vacancy!

Simply explain to your tenants that at minimum, they will have 90 to 100 days or more between the time you accept an offer and having to move — that is, if they are even asked to do so. Any amount of time you’re on the market before your property sells will add give them even more time.

And of course, there is always the possibility they won’t be asked to move at all and can stay right where they are!

continue reading...

Three Reasons Minneapolis Duplex Prices are Soaring — And Why That May Be About To Change 12.01.16

Comments Off on Three Reasons Minneapolis Duplex Prices are Soaring — And Why That May Be About To Change

Minneapolis Duplex Prices RiseBy now, you’ve probably heard that duplex prices in Minneapolis and St Paul have rebounded to at or near the healthy highs of 2005.

This price rebound is the result of three things:

  1. Historically low interest rates – One of the rare silver linings of a slower economy is interest rates are often kept low by the Federal Reserve in order to help stimulate economic activity. The economic downturn resulted in nearly a decade of inexpensive loans, which helps duplexes cash flow better than at higher rates.
  2. Lack of inventory – Low interest rates gave many would-be duplex sellers an opportunity to refinance their loans, which made their duplex cash flow like never before. This resulted in fewer owners putting their properties on the market. If you think back to high school economics class, you’ll recall the law of supply and demand. When supply is low, prices go up.
  3. Low vacancy rates – During the economic crisis, many would-be homeowners lost their homes to foreclosure or sold for less than what they owed. With their credit tarnished and perhaps even a job loss, many became renters. Meanwhile, many would be first time home buyers found themselves burdened by large student loan debt or simply unable to get a job. Others came to view home ownership as risky. They too chose to rent, rather than buy.

All of this has resulted in a giant shortage of Minneapolis duplexes, triplexes and fourplexes on the market in the Twin Cities.

In fact, there are currently just 195 small multi-family properties available for sale on the Multiple Listing Service. This includes the seven county metro area, as well as western Wisconsin and out state locations.

To put this in perspective, in December of 2007, there were 1104 properties on the market.

In other words, it’s a great time to be a duplex seller, because you won’t have as much competition.

That is, until spring.

You see, many long term duplex owners have told me they are ready to make a change in their lifestyle, and for the first time in more than a decade, are thinking of selling. And if they do, then the lack of inventory part of the rising price equation goes away.

You may also have heard that the government’s economic report has been entirely positive since September, leading many to believe the Federal Reserve will raise interest rates when they meet later this month.

And if interest rates go up one percent, that changes the cash flow on a $300,000 duplex by roughly $3000 a year. That can make a duplex that was a good investment to one with negative cash flow in a hurry.

If you’re thinking of selling, please contact me. Even if you decide the time isn’t right, I’ll be sure to give you my thoughts on how you can make sure your property is a good investment for you for years to come.

continue reading...

Should You Sell Your Minneapolis Duplex Now or Wait Til Spring? 10.03.16

Comments Off on Should You Sell Your Minneapolis Duplex Now or Wait Til Spring?

There’s a nip in the air, the leaves have begun to change, the Vikings still have a winning record and you’d really like to sell your Minneapolis duplex.

And because you’ve lived here a while, if not your whole life, you know snow is just around the corner.

Is it even worth it to try to sell your duplex now? Or should you just wait until spring?

After all, who wants to move in the ice and snow, right?

Lots of people. In fact, they’re looking — and starting to look, right now.

For the last two to three years, we’ve had more Minneapolis and St Paul duplex buyers in the market than we’ve had sellers. That’s due largely to low vacancy rates, which have resulted in higher rent and more cash flow for most duplex owners.

Because the supply of duplexes for sale is lower than demand, prices have risen. This has largely not deterred buyers, as historically low interest rates, coupled with higher rent, has meant the properties were still affordable and/or made financial sense.

As more and more duplex owners hear prices are up, however, the amount of inventory has inched up ever so slightly. Come spring, this trickle may become a deluge.

With more inventory, duplex sellers will face more competition. Buyers won’t feel quite the same sense of urgency to pounce on a great listing, as they become confident another one will come along.

Worse yet, if interest rates go up as little as one percent, prices will change. That’s because a one percent raise in interest on a $300,000 mortgage means an increase in payments of $3000/year or $250 a month. That can take a property from a positive cash flow to a negative, or from affordable to expensive in an instant.

Of course, none of us can know the future.  And the more certain we are of things as they are, the more likely they are to change.

If you’ve been thinking about selling your Minneapolis or St Paul duplex, now is a great time to do so. Feel free to email or give me a call to talk about it.

 

continue reading...