House Hacking in the Twin Cities: Numbers, Challenges, and Opportunities

[Mason Vitalis]

House hacking has long been one of the most popular ways for new investors to get started in the Twin Cities. With a strong supply of duplexes, triplexes, and fourplexes in Minneapolis and St. Paul, the strategy is a great way to reduce living expenses while building equity and gaining landlord experience.

But the numbers look a bit different in 2025 than they did even a few years ago:

• Purchase prices: Small multifamily properties in Minneapolis/St. Paul typically range from $300K–$550K, depending on location and condition.

• Rents: Median rents for 2–3 bedroom units are running $1,500–$2,000/month in many neighborhoods.

• Financing environment: Interest rates in the 6–7% range mean the mortgage payment is higher, making underwriting tighter but there's less competition so getting a better deal upfront is more feasible.

Even with these challenges, house hacking can still work here when the numbers are run carefully. For example:

• A $400K duplex with each side renting for $1,600 could cover 50–60% of the monthly mortgage and expenses, allowing the owner-occupant to live significantly below market rent.

• In higher-rent areas, some house hackers still manage to live for free or nearly free especially when we look at triplexes and fourplexes.

The bottom line: it’s not as “easy” as it once was, but house hacking remains a viable strategy — especially for investors who view it as a long-term play combining reduced living costs, equity growth, and rental experience.

👉 I’d love to hear from the community:

• Do you think house hacking in the Twin Cities still makes sense in 2025?

• What metrics do you look for before saying yes to a deal?

• And for those who’ve done it recently — what’s been your biggest lesson learned?

[Jordan Frisco]

I say get in now. If 6% interest rates scare you then you will miss out when they go to 8-10% interest and you don't have the property. Better to have the real estate then the paper. If we were to think monopoly you would be arguing that you shouldn't be buying the orange properties on your second trip around the board. Protect yourself from the other costs of the house and make the renter pay for them. Those seem like nicer areas/middle ground areas. I think that you will always have renters.