Is anyone finding good deals in Minneapolis?

Question

We are just starting out and reading a lot about very inexpensive properties to flip. It doesn’t seem like there is anything worth buying in Minneapolis area that is affordable. Was just reading about purchasing in TX and OH for well under $100k. Is this market out of reach?

Kim Feldkamp · Answer

I’m not a house flipper and don’t like to provide guidance on things I’m not well versed in. I buy multi family properties in Minneapolis/St Paul in good areas that need work and fix them up to rent long term. I’ve also done live and flips. I think if you’re starting out, that’s a good option to look into. Either buy a small multi family that needs work and move in and fix up each unit OR buy a single family home and improve it and sell it. As long as you live in it 2 of the last 5 years, you can avoid taxes on the gains. I think this is realistically a way for someone just starting out to make money on a flip in Minneapolis. $100k houses just aren’t a thing here. Buy a house in a good area that needs work and fix it up over 2 years and sell it. My 2 cents.

James Hamling · Answer

No, not even close to accurate. Below is the DIRECT data feed from Twin Cities MLS, there is no 10% drop, and actually no drop at all.

There is no "opportunity" of distressed homes to "cheaply flip" in Twin Cities.

People, PLEASE STOP reading books from a decade+ ago on market standings, this is not '09'.

Kim Feldkamp · Answer

The median home price is lower than the national average but definitely not decreasing. Definitely nowhere near $100k unfortunately.

Tim Swierczek · Answer

Both Redfin & BP are incorrect.  We are on pace for just under 10% appreciation year over year in Minnesota. The Twin Cities market is tight with very low inventory.

Tim Swierczek · Answer

It is not realistic to find a house sub $100K in Minneapolis. I have seen a few in the 80-90K range that are close to or should be teardown properties. They would require expert management to make a handful of dollars. Most people would lose money on those properties.  In addition, low-value properties have tighter margins, and while they may seem attractive, they have little room for error when flipping.

Bryon Andrews · Answer

Great advice from @Kim Feldkamp! This is a very common strategy as well as one that my wife and I do too. It opens doors to other opportunities as you grow.

Eric Gerakos · Answer

Kiersten, buying cheap, crappy properties in crappy neighborhoods is a great way to lose money. Always remember that properties are cheap for a reason.

Abel Curiel · Answer

@James Hamling@Kim FeldkampI totally misread that! you are both right... the article referenced Minneapolis' median prices being 10% below nat'l average.

Thank you both for the correction here.

Jay Lohn · Answer

You are not going to be able to find anything under $100k in Minneapolis that you would want to even touch.

Abel Curiel · Answer

Hello @Kiersten Hegna!

According to BP and Refin, Minneapolis is seeing increased inventory and has already seen a 10% drop in median home price over the last year.

These could be good signs when it comes to finding discounted deals. If you're flipping for the first time, the risk level may be higher in this type of market.

Of course, these are general stats on the greater metro area so I'd recommend speaking with a local specialist who can break down the most affordable options within Minneapolis.

The search feature here on BP could also direct you to relevant forum posts and contacts. Here you can also find out additional information about TX and OH.

My preferred contact in OH is @Steven Foster Wilson

All the best to you on your search!

Abel

Is anyone finding good deals in Minneapolis?

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