Homes for Sale in NE Minneapolis
We had another duplex sold in NE Minneapolis by our team!
Buyer’s Agent: Edina Realty
Seller’s Agent: Jason Reed
Looking for a Single-Family Home in Northeast Minneapolis? Consider a Duplex Instead!
We’ve been having so much success helping buyers and sellers of duplexes and triplexes in Northeast Minneapolis that it’s becoming one of our favorite places to work. We personally each live in Minneapolis, and we think that Northeast Minneapolis has become one of the best places for people to live.
This duplex listing that we had was absolutely amazing – and it was right by the Columbia Park and Columbia Golf Club off of Saint Anthony Parkway. This had a close proximity to some really neat areas in NE.
These beautiful homes that were built in the 20th century have become amazing tools for people to live inexpensively – while enjoying some of the great things the Northeast Minneapolis has become known for. One of our personal favorites is to head over to Hazels Northeast after we meet with some clients.
Remember that if you’re looking to buy a home in Northeast Minneapolis, you might want to consider a duplex rather than a single-family home.
A duplex can provide you with a couple of things that you might not have thought of.
The first thing that most people don’t understand is that you can purchase a duplex using the same financing you would a single-family home – as long as you’re going to be an owner-occupier of the investment property. In fact, if you are going to be living there for at least a year, you would be able to use some of the mortgages from Fannie and Freddie, using an FHA loan with low down payments in the 3% range.
Rental Properties in NE Minneapolis
Remember that if you were looking at properties and noticed that one of them is a duplex, you would be able to rent out the other unit to create cash flow. Because Minneapolis is facing a rental crisis where there are too many renters and not enough inventory – you will often have a situation where rental income from your duplex unit might cover or exceed your mortgage payments.
We don’t want to over sensationalize the attractiveness of duplexes and triplexes in Minneapolis or St. Paul, but we want people to understand that a duplex might be able to illuminate or drastically reduce their cost of living because the rental income will cover their mortgage.
Another thing we like to communicate is that a duplex purchase is entirely different than a single-family home because you will be able to be approved for a higher price because most lenders will consider the rental income when preapproved you. This means that you might get approved for 5 to 25% more home depending on the potential rental situation and your current approval.
So you can buy more home and use the same financing if you choose a duplex or triplex – and it gets even more attractive when you start to realize that this could be one of your first properties in a real estate portfolio.
Many people choose to do what’s called house hacking – where you live frugally for a couple of years while you get yourself into a position to be able to make some investments into real estate. Duplexes and triplexes are one of the best types of property to start with if you’re considering house hacking.
When you purchase a home as an owner-occupier and use traditional or FHA financing, you will be required to live in the home for at least one year. After that year is up, you have fulfilled your requirements that your lender had, and you would be able to start positioning yourself for another property. If you were to move out, you would be able to use approximately 70% of the rental income from each unit to cover your expenses – and then you would be in a whole new pre-approval process for the next property.
In other words, after a year you would be able to go out and get another duplex.
Obviously, the key to investing in real estate or rental property is to make sure that you are getting a proper value and then executing. If you don’t do a good job of finding the right property, you might find yourself in a situation where you have lots of repairs are unseen difficulties placing a tenant.
But for the vast majority of our clients that are buying duplexes in Northeast Minneapolis, they find that managing a duplex or triplex rental is not very hard and is quite a bit lower risk than what any other investment might be.
So if you’re looking to buy a home in Northeast Minneapolis, consider checking out a duplex and we would be honored to have an opportunity to help you find the perfect property.
If you own a property in Northeast Minneapolis and are thinking of finding a buyer, we would also be honored to have a conversation. Listing a duplex requires expertise and it’s critically important that you work with somebody that understands the difference of multi-family homes and single-family homes.
One disappointing thing that happens for sellers is that they work with a real estate agent that doesn’t understand how to convey the value of the potential rent, and they undervalue the duplex or triplex. We know this happens all the time because our buyers benefit when we find these deals.
If you’re going to sell your duplex in Northeast Minneapolis, make sure you work with a duplex specialist.
Obviously, this is where we come in. We don’t want to sound too promotional, but we care deeply about people and this is our core business. We don’t even dabble in single-family homes, all we do is duplexes, triplexes, and quads in the Twin Cities region. When you work with us, you’ll be working with either Jason Reed or Drew Hoefler and our support team will make sure that the process goes smooth.
We’re the number one duplex real estate in Minnesota for the fifth year straight and nobody has done more duplex or triplex transactions in the Twin Cities than Jason Reed and The Duplex Doctors.
Edina Realty represented the buyer in this transaction.
Also published on Medium.