Archive for March, 2016
Comments Off on Can’t Find A Minneapolis Duplex For Sale? Have Your Realtor Check Her Pockets
In a Minneapolis duplex seller’s market, what’s the best thing a duplex buyer can do to help find a duplex?
Ask your Realtor what’s in her pocket.
I’ve written about pocket listings in the past, but it seems worth doing so again.
At any given time, an agent who actively works in the duplex market may be in touch with duplex, triplex or fourplex owners who are at varying states of selling their property.
Some Minneapolis duplex owners may be open to selling their property, but haven’t fully made that decision yet. Others may be in the process of getting the duplex freshened up, painted, and truth in sale of housing repairs tended to. Still others may not be thinking of selling their properties at all – unless the price was right.
Because I specialize in Minneapolis and St Paul duplexes for sale, I have a long list of people who fit any number of these descriptions. If a buyer who is working with me gives me a description of their perfect property and it just happens to match one owned by one of my future sellers, I will do my best to arrange a showing.
In this tight duplex market, I also have many Realtors calling me to ask if I have future duplex sellers for their clients. Of course, having never spoken with their client, I have a difficult time imagining exactly what it is they’re looking for.
More importantly, I’m often so busy trying to find my own buyers the right property, I don’t have time to hunt for their buyers too.
And of course, if it’s o.k. with the duplex sellers, my buyers always get in first. It’s the advantage of working with a duplex specialist.
Comments Off on The Downside of an Up Minneapolis Duplex Market
In the 9 years since the real estate market crash of 2007, many Minneapolis and St Paul duplex owners who lived in their properties found a reason to move.
It may have been the result of a job, a growing family, a much-needed life change– regardless, life brought new opportunities, and thanks to duplexes being worth less than what was owed, many found it necessary to rent their properties out.
With vacancy rates as low as two percent in some areas of the Twin Cities, this turned out to be a good thing. Rent is high, causing many duplexes to produce more cash flow than they ever have before.
Now that the market’s rebounded and there’s very little inventory for duplex buyers to chose from, it’s a great time to sell your Minneapolis duplex.
There may be a snag in your plans, however. If you haven’t lived in your duplex two of the last five years, your proceeds from the sale may be subject to capital gains tax.
Now that the duplex market has fully rebounded, it’s important for duplex sellers to be aware of all of the ramifications of having made money on their property. There is no one, sweeping rule as to who owes what, so be sure to check with your tax professional before the duplex is active on the Multiple Listing Service.
Comments Off on What Are The Two Kinds of Minneapolis Duplexes?
Would you believe me if I told you there are two different kinds of duplexes?
And no, I’m not referring to a side by side compared to an up/down.
One kind of duplex cash flows.
The other kind helps an owner occupant afford a lifestyle.
Sometimes the difference is hard for people to understand. After all, shouldn’t all duplexes cash flow?
However, there’s one thing that’s radically different about a duplex, triplex or fourplex from any other kind of investment property; it’s eligible for FHA financing.
FHA financing is available only to buyers who intend to live in the property, and it requires just a 3.5 percent down payment.
Many duplex buyers don’t buy the property for the immediate cash flow. Rather, they purchase it for a long term investment that, for the moment, will offset their own living expenses
Rent, believe it or not, has gotten expensive. As a result, many tenants begin looking to purchase a home of their own. Some quickly realize that a house payment isn’t any less expensive; particularly if they want to live in a hot neighborhood.
However, they often realize if they buy a duplex, not only is their portion of the mortgage payment reduced by the amount of rental income, it is quite often even less than they were paying in rent.
This epiphany means an owner occupant buyer is typically willing to pay more for a duplex in a sought after neighborhood than is a duplex investor looking for a specific rate of return. This drives prices up to where they no longer make sense for many real estate investors.
That’s a hard thing to understand if you’ve been watching late night infomercials on how to make millions in real estate.
But in many markets, it’s reality.
Comments Off on How To Learn Real Estate Investing – For Free
If you’ve ever dreamed about investing in real estate, but just weren’t sure how to begin, you can learn for free this Wednesday at the monthly Minneapolis-St Paul Cashflow game.
Cashflow 101 is a board game created by Rich Dad Poor Dad author Robert Kiyosaki that teaches the basic principles of his book in a fun, easy to learn way. Not only does the game provide an opportunity to learn about real estate investing with very little risk, it also gives you a chance to meet and network with other investors.
The Minneapolis-St Paul Cashflow group meets at 7 pm the second Wednesday of every month at the Knights of Columbus Hall at 1114 American Blvd W in Bloomington. Food and beverages are available.
Hope to see you there!
Comments Off on Empty Shelves at the Twin Cities Duplex Store
As a Minneapolis or St Paul duplex buyer, sometimes it’s hard to understand there aren’t as many duplexes out there to see as there are bottles of shampoo on the shelf at Target.
This is especially true right now.
There are currently just 57 duplexes, triplexes and four unit apartment buildings on the market in Hennepin County.
Ramsey County is only slightly better with 65 currently active listings for buyers to choose from.
That isn’t a lot.
So duplex buyers need to be patient. Very, very patient. In fact, it might not be a bad idea to bring a snack.
And if you’re a Twin Cities duplex owner who’s thinking about selling, the time couldn’t be better. After all, your duplex won’t have to compete for shelf space.