Duplex for Sale Hopkins Mn
Buyer’s Agent: Keller Williams Integrity
Seller’s Agent: Jason Reed
It’s time to celebrate again because we had another duplex listing sell. This time Jason Reed was the listing agent and Keller Williams Integrity had the buyers side.
There are many duplexes for sale in Hopkins Minnesota and some of the surrounding suburbs. Since we’ve been the number one duplex specialists in the Minneapolis region for over five years, we sometimes forget how much opportunity there is in the suburbs. This is a great example of how a duplex can provide a low complexity investment property.
One of the best benefits of duplexes and triplexes is that they can produce passive income that is not subject to self-employment taxes and they are relatively easier to manage than most investment properties.
In fact, it could be argued that a duplex or triplex is easier to manage and has lower risk than a single-family home as an investment. Think about it, when you buy a single-family home as an investment, there is only one tenant paying your rent and when that tenant goes away, so does your income stream. When you have two or three tenants, you have a diversified income source and you are less likely to see periods of complete vacancy.
Some people think they can purchase homes in the suburbs and split them up like a mother-in-law apartment or have more than one renter, but we found that duplexes and triplexes are a much better property to have renters in.
Should you purchase a house and then get some roommates to pay your rent? Rather than buy a single-family home, we would highly recommend that you purchase a multi-family property.
For example, if you were in a position where you wanted to buy a house for sale in Hopkins Minnesota so that you could have a couple of roommates that are renters, you would be able to purchase more home if you chose to purchase a multi-family. We’ve met many people that don’t have kids or spouses and wanted to buy a home rather than rent with the strategic intent of finding a couple of roommates on Craigslist.
If you’re thinking of having a couple of roommates that you found on Craigslist, that probably means that you purchased a single-family home rather than a multi-family. The benefits of purchasing a multi-family home rather than a single-family are clear – you can buy more home, you can benefit from having separation between tenants, and you will be providing a legal environment that makes more sense.
In fact, one of our business partners has a brother that purchased a large home with a mother-in-law apartment in one of the Minneapolis suburbs. He had the intent of renting out the extra room since he was single and working full-time. Rather than creating financial momentum, he found that it was nothing but a disaster. The types of people he was finding off of craigslist did not treat his property well, and the living environment deteriorated rapidly. When talking with him later, he said that it would’ve been a much better idea if he would’ve simply bought a duplex and made a formal agreement between tenants.
For people that have flexibility and want to get out of simply pouring cash down the toilet with rent, a duplex is a perfect property to create income or to live with low expenses.
We talked a little bit about it earlier in this article, but remember that when you purchase a multi-family home, you will be able to use the future income of your tenants when going through the mortgage approval process.
That’s one of the biggest reasons why you would want to purchase an official multi-family home such as a duplex or triplex, rather than buying a single-family home to rent out. You will be able to purchase more home and then use other people’s money to build a larger asset in the future.
Not only will you be able to purchase a little bit more home, but you will be able to use legal agreements and properly manage your tenants so that you attract a higher caliber lease agreement. Obviously, you want to work diligently to find amazing renters, but we found that people tend to benefit when there is a formal agreement, automatic rent being paid through a payment system, and quick follow up when there’s a delinquency in payment.
If a tenant has problems paying rent on time, responding in a formal manner swiftly will often communicate that you are an organized business and will not tolerate people financing there your responsibility on your shoulders. When you purchase a single-family home and have roommates, it’s a less formal situation and you’re more likely to see tenants take advantage of your kindness. While it’s important to be generous, we found that all parties benefit with a more formal tenant relationship.
So if you’re looking for a home to buy and then rent in the Hopkins or Minneapolis St. Paul region, we think it would be a great idea to consider buying a duplex, triplex, or quad.
We would be honored to have an opportunity to earn your business, so reach out for a non-pushy conversation about what type of property you might have.
We meet so many people that were thinking about buying a home as an investment only to find out that there’s a ton more opportunity when they purchase a duplex. You’ll be able to get the type of home you want, it will be an income producing property, and you’ll have a little bit lower risk since you will have a diversified amount of tenants rather than just yourself.
Duplexes are simply amazing – especially when you have the flexibility in your earlier years.