General Area in 55408>Question Details

Mitch, Home Buyer in MPLS

I am looking at acquiring a 2up/2down fixer upper duplex in uptown. What is the average per room rent?

Asked by Mitch, MPLS Fri Dec 28, 2007

that this area typically goes for? Thanks!

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Answers

8
Mitch, I have helped several investors and first time homebuyers purchase duplexes in the Minneapolis Uptown area. I would have to say that it is a great investment if you get one for the right price. To answer your question the average rent varies depending on how close you are to Hennepin and Lake. The closer you are the higher the rental rate. I would say you can expect to get from $500 per bedroom to $850 just depending on location and condition.

If I can give you some words of advice; be very careful to make sure your investment is going to cash flow. This will obviously depend on how much money you are going to put down, but you want to make sure your purchase cash flows especially if you are not going to be living in either of the units. You also want to make sure it cash flows because duplex values are going to continue to decrease for the rest of 2008 and possibly into 2009.

If you have any other questions please feel free to call or e-mail me. Click on the web reference below to get my contact information and also to view the Free reports and buyers guide we offer.

Good luck!
3 votes Thank Flag Link Fri Dec 28, 2007
Mitch, there are some great points below, but I would also look carefully at any leases in place in a unit you may contemplate buying, as you do assume them. That can be a positive or a negative and varies by circumstance. Rents do seem to be trending up as of late, so that is a positve. I don't know that I concur that duplex values will continue to decline in 08 and into 09, surely you will not see any noticeable value increase, so if you are looking for that, best plan to be in for the long haul.

I do wish you the best!

Todd Norsted
Web Reference: http://www.toddnorsted.com
2 votes Thank Flag Link Sat Dec 29, 2007
Hi Mitch! I would suggest you check out Craig's List to see what is going on for rents in the areas you are considering a purchase. I have owned a duplex rental property in Minneapolis since 2003, and Craig's List has been a great source of rental rate info and tenants.

I learned a lot about being a landlord prior to ever becoming a license real estate agent. I would also suggest you check out the City of Minneapolis website for information on the City's rental inspection and licensing process, vacant building registration fees, special assessments, "conversion" fees for buying previously homesteaded property and "converting" them to full rental status (this fee was $1,000 a year or so ago - that may have changed) and if you haven't ever owned rental property before - consider taking some classes.

Here is a link to the City's website: http://www.minneapolismn.gov/index.htm
Under the "most requested" tab on the front page of the City's website, you'll find a link to Property Information that is very helpful in researching specific properties. Good luck in your search!

Stephanie Gruver, RE/MAX Results
0 votes Thank Flag Link Sat Dec 15, 2012
Mitch

Great question, have a look at this site as it shows average rentals and has a real easy map to use. http://www.padmapper.com . $1 a square foot is pretty close. Although in Uptown you can usually get more.

Also like others say, make sure it cash flows, cash will get you out of trouble for any vacancy or unexpected repairs. I like the 1% rule, can you get 1% of the purchase price in rent every month eg $200,000 Duplex can you get $2000 a month in rent.

I'd be happy to set up a search for you
0 votes Thank Flag Link Wed Jun 13, 2012
Hi Mitch,
There are some great answers here, but I will toss my 2 cents in anyway!
I own several duplexes in the 55408 area. Depending on the quality of renovation/updating, unit sizes, layout, amenities, and most importantly location ( near 35W or Calhoun) you can expect to get between $900-$1300 for a 2 bedroom 1 bath unit. in unit laundry, garage, etc will add more.
If you would like help looking for investment properties, I specialize in the area.
Good luck!
Muffy
Keller Williams Integrity Lakes
muffy@kw.com
0 votes Thank Flag Link Sat Jan 2, 2010
You might want to do some rent research on web sites like http://www.rent.com or http://www.apartments.com to see what similar properties in the area you are interested in are renting for.

Best wishes.
0 votes Thank Flag Link Thu Jun 12, 2008
Ask your Realtor to go into multi family housing on the MLS and do a rent analysis. Duplexes usually have the current rents listed. Have him or her check the recently sold homes, as well.
0 votes Thank Flag Link Tue Jan 1, 2008
Mitch,
I always like to check Craig's list and the newspaper to see what other people are charging for rent. That will give you a starting point, from there it will depend on the condition and location of the duplex.
Michael Doyle
0 votes Thank Flag Link Mon Dec 31, 2007
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