Read our latest blog about buying a house and get all your questions answered!

The realtors at The HIVE have experience helping people buy homes throughout the Twin Cities and surrounding communities. 

If you have additional questions, or are ready to start the journey of finding your perfect home, contact us today.

1. What is the process of buying a home?

2. Why is getting pre-approved for a loan important before touring houses?

3. How do we start searching for a house to buy?

4. When can we tour houses?

5. Why is it important to hire a trusted realtor?

6. How do we write an offer to buy a house?

7. What happens once our offer is accepted?

8. What costs are associated with buying a house?

1. What is the process of buying a home?

1. Contact a lender to start the mortgage pre-approval process.
2. Your realtor will create a custom search on the Multiple Listing Service (MLS) platform which provides accurate information about the houses for sale that fit your criteria.
3. Start touring houses for sale with your realtor.
4. Once you've found the perfect house, you'll work with your realtor to write an offer.
5. Upon offer acceptance, you'll schedule a home inspection and continue the mortgage approval process with your lender.
6. You will take a final walk through the house prior to closing to ensure the house is in the same condition.
7. On closing day, you'll sign documents at a title company and receive the keys to your new house!

2. Why is getting pre-approved for a loan important before touring houses?

Getting a pre-approval from a lender is the foundation of the entire process to buy a house.

• It helps you know what you can afford before starting to tour houses.
• It saves you time and energy.
• It gives you the opportunity to find the best program for your needs.

3. How do we start searching for a house to buy?

Your realtor will set up a search on the MLS that fits your criteria for a house. The biggest factors are location, price range, and bed, bath & garage counts.

• Location Considerations
  • Long term plans
  • Proximity to lifestyle and family favorite activities
  • Schools
  • Distance to jobs, family and friends
• Price Range
  
  • Determine the range that works best for your situation.
  • The maximum price a lender approves you for, may not necessarily be how much you can afford to spend.
  • Set a monthly mortgage budget and decide a range you will be comfortable with each month.
• Bed, Bath & Garage Counts
  • The MLS has data fields to fit your needs. Is an attached garage a "must-have"?
  • The search is interactive and helps your realtor know the homes that you want to tour.

4. When can we tour houses?

Whenever you're ready and have been pre-approved with a trusted lender!

• Communicate with your realtor - make sure they know the homes you want to see and your preferred schedule.
• Consider setting aside time to tour houses for sale ahead of time. House hunting can be time consuming.
• Buyers with flexible schedules tend to see faster success.
• Be prepared to take notes and observe the things you like or dislike.
• Be honest with your feedback.

5. Why is it important to hire a trusted realtor?

Hiring a trusted realtor is important because buying a house is likely one of the largest purchases you will make in your entire life. It is important to find a realtor you enjoy spending time with and can have open and honest communication. Here are some characteristics you will find valuable in a realtor: 

• Knowledgable about the current real estate market
• Trustworthy
• Dependable
• Flexible
• Strong Work Ethic
• Attention to Detail
• Excellent Negotiation Skills

Hiring a realtor within a large brokerage, such as Coldwell Banker Realty, can also be a quality asset. Coldwell Banker Realty is one of the top-performing brokerages in the Twin Cities, currently ranked #1 in Ramsey and Hennepin County for leading brokerage by total sales volume for 2022.

6. How do we write an offer to buy a house?

Almost everything is done electronically! You will work with your realtor to create a competitive offer using the following:

1. Get a pre-approval letter from your lender. Your realtor will submit this with your offer to show you are qualified for the loan.
2. Decide on your purchase price.
3. Set a closing date - Typically within about 30-45 days.
4. Earnest Money - An amount of money, similar to a deposit, offered to show your dedication to purchasing the house. This is typically 1%-2% of the purchase price and will show as a credit to you on closing day.
5. Home Inspection - Is the purchase contingent on inspection? How many days would you like for the inspection period? A typical inspection period is 5-10 calendar days. Read our Top 6 Reasons to Get a Home Inspection.

7. What happens once our offer is accepted? 

This is called the escrow period. Here is what you can expect between offer acceptance and closing day:

1. Your loan goes through underwriting and is finalized.
2. The lender orders an appraisal to determine the value of the house.
3. The title company will examine the house's title to ensure it is clear for your ownership.
4. You will take a final walk through the house prior to closing.

8. What costs are associated with buying a house?

• Earnest Money - An amount of money, similar to a deposit, offered to show your dedication to purchasing the house. This is typically 1%-2% of the purchase price and will show as a credit to you on closing day.
• Closing Costs - Fees due for services such as title commitments and mortgage origination, typically 2-3% of the purchase price.
• Down Payment - Down payments can be as low as 3% for a conventional loan or 3.5% for a FHA loan.

Let us know if you have any questions about buying a home.

One of our experienced realtors will be in touch as soon as possible. 

We can start the process today!

9th Annual Ice Cream, Peanut Butter & Jam!

Merriam Park

2000 Saint Anthony Ave, Saint Paul, MN 55104

Saturday, September 17th, 2022

12:00am to 4:00pm

We will be tabling this year at the 9th Annual Ice Cream, Peanut Butter, and Jam hosted by the Union Park District Council!

This event is FREE to the public and offers tons of fun activities such as free ice cream, bouncy houses, face painting and great local musicians. The Union Park District Council will be collecting peanut butter donations for the local food shelves.

Thinking about selling your duplex in 2022?

Contact us today to speak with an experienced realtor! We sell multi-family properties in Saint Paul, Minneapolis, and all of the surrounding communities.

See what Julia said when we helped her sell two multi-family homes:

My family worked with Mya to sell two multi-family buildings in St. Paul. She guided us with expertise, tact, compassion, and professionalism throughout the process. We could count on her to lay out all the options, provide opinions when asked, and change gears when necessary. Thank you Mya! Selling family buildings during COVID was made easier because of your leadership and your fabulous team!

- Julia J.

• 1. Gather Information About the Property
• 2. Determine List Price
• 3. Market the Property
• 4. Showing the Property
• 5. Process the Sale
• 6. Support Your Favorite Nonprofit Organization - A HIVE Real Estate Exclusive!

1. Gather Information About the Property

It is important to gather the following information to help provide buyers with a complete picture of the property when it hits the market.

• Monthly rent for each unit
  • If any units are vacant, we will measure the space and determine the market rent rate.
• Annual Income
• Annual Expenses
• How utilities are paid
• Rental history (if possible)
• List of updates and improvements

2. Determine List Price

Establishing the value and list price for your property involves researching and comparing similar properties and weighing factors including:

• Location
• Condition
• Amenities
• Market Conditions

Together with your realtor, you will arrive at a competitive price aimed at generating strong buyer activity for selling your multi-family property.

3. Market Your Home

We provide the following services while being as courteous to your tenants as possible:

• Professional photography
• Yard signage
• Local newspaper ads
• Customized property marketing - Fully curated brochures for each listing--meaning your property will stand out amongst the rest!

We are also able to market your property within our vast network of Coldwell Banker agents prior to it hitting the open market.

4. Showing the Property

One of the most difficult aspects of selling a multi-family property is creating availability for buyers to tour the property. If the property is difficult to access, it may remain on the market and grow stagnant. As your realtor, we guarantee to provide the following:

• Maintain an open line of communication with you and your tenants
• Work with you and your tenant's work and sleep schedules
• Arrange 2 hour showing periods, hosted by one of our real estate agents to allow buyers access to the entire property

5. Process the Sale

• We provide constant communication throughout the sale process, guiding you through each step with care and precision.
• We will review all offers and terms of each offer with you and negotiate on your behalf so that you obtain the highest possible price for your home while limiting your exposure and protecting your best interests. 
• Our team has vast experience in multi-family homes and understands the intricacies involved in processing a sale such as this.

6. Support Your Favorite Nonprofit Organization - A HIVE Real Estate Exclusive!

• To celebrate your home sale, we will donate to a local nonprofit on your behalf! 
• Our donation comes from The HIVE Fund, a donor-advised fund through the Saint Paul & Minnesota Foundation.

Email us any questions you have about selling a multi-family investment property. One of our Twin Cities realtors will be in touch as soon as possible.

Selling your home doesn't need to be complicated. Finding the right realtor is the first step. 

Contact us today to get the conversation started! We sell homes in all of the surrounding Twin Cities communities, and offer low-pressure, no obligation consultations.

1. Meet with The HIVE

2. Prepare Your Home for Sale

3. Determine List Price

4. Market Your Home

5. Process the Sale

6. Support Your Favorite Nonprofit Organization - A HIVE Real Estate Exclusive!

1. Meet with The HIVE

Come visit our Saint Paul office! We'll drink cappuccinos and discuss your goals.

• Where will you go next?
• What does your timeline look like?
• Busy schedule or out of state? We can set up a virtual appointment. 

Our extensive experience in real estate education will ensure you are protected and informed at each step of the home-selling process.

We will take the time and give our professional opinion on easy improvements you can make to get the highest return on investment.

2. Prepare Your Home for Sale

Knowing how to showcase and accentuate the best features of your home, without incurring unnecessary expenses, is at the core of what we do. As we tour your home, we take the time to learn about it, address your questions and needs, provide more information about our marketing strategies, share market insights, and decide next steps for selling your home.

3. Determine List Price

Establishing the value and list price for your property involves researching and comparing similar properties and weighing factors including:

• Location
• Condition
• Amenities
• Market Conditions

Together with your realtor, you will arrive at a competitive price aimed at generating strong buyer activity for selling your home.

4. Market Your Home

As part of our full-service brokerage, the following services are included in our listing package:

• Professional Photography
• Public Open Houses & Broker Tours
• Yard signage
• Local newspaper ads
• Coldwell Banker Sales Agent Networking (Pre-market included)
• Curated Property Brochures

5. Process the Sale

We are by your side from start to finish and provide constant communication, guiding you through each step of selling your home with care and precision.

We will review all offers, the terms of each offer, and negotiate on your behalf so that you obtain the highest possible price for your home while limiting your exposure and protecting your best interests. 

The final step is to close on the sale, and pop the champagne!

6. Support Your Favorite Nonprofit Organization - A HIVE Real Estate Exclusive!

• Our goal is to take care of our neighbors. At the close of each home sale or purchase, we write a grant from The HIVE Fund, a donor-advised fund with the Saint Paul & Minnesota Foundation.
• Each client gets to choose a non-profit to support.
• Since 2019, The HIVE Realtors have raised and donated over $80,000 and volunteered over 500 hours with many of the local non-profits supported through their event planning and community efforts.
• Visit The HIVE Fund to learn about some of the local nonprofits clients have chosen to receive grants.

Email us any questions you have about selling a home. One of our Twin Cities realtors will be in touch as soon as possible.

Free Checklist:

Bags for a Cause - The Sanneh Foundation Bags Tournament

Conway Recreation Center

2090 Conway Street, Saint Paul, MN 55119

Saturday, July 30th, 2022

11:00am to 4:00pm

Join the Sanneh Foundation's Associate Board for their first annual bags (aka cornhole) tournament! This fun-filled event features a beer tent, food trucks, music, and activities for kids. No experience or skills necessary.

Tickets are available for $50 per team. Grab a few friends and join us in raising money for one of Saint Paul's most influential nonprofit organizations!

Sign Up Today!

Registration begins at 10:30am - We look forward to a beautiful day with you!

Visit their website to learn more about The Sanneh Foundation.

Please reach out to Megan at megan@socialresponsiblerealtors.com with any questions!

Have you been thinking about buying a second home or investment property?

The realtors at The HIVE have experience helping people buy primary residences, second homes, and investment properties. We put together this quick read to help you learn about your next potential real estate purchase. Read our blog for more information about second homes and investment properties.

If you have additional questions, or are reading to find your perfect second home, contact us today.

• 1. Primary Residence vs. Second Home
• 2. Second Home vs. Investment Property
• 3. Renting Out Your Second Home
• 4. Why are People Buying Second Homes?
• 5. Things to Consider When Owning Two Homes
• 6. Kiddie Condo Loans

1. Primary Residence vs. Second Home

What is the difference between a primary residence and a second home? Buying a second home is very similar to buying a primary residence, although there a few key aspects to consider:

• A second home is defined as a residential property that the owner did not purchase for use as an investment property. The owner resides in the home for at least part of the year but does not use as the primary residence. 
• Many lenders require buyers to put down a minimum downpayment of 10% (compared to a potential 3% downpayment for a conventional loan on a primary residence).
• Buyers will likely pay a slightly higher interest rate for second homes than primary residences.

Buying a second home is slightly more complicated than buying your primary residence . If you are looking to get a mortgage for your second home, you will likely need a larger down payment and have to pay a higher interest rate. It’s important to discuss with a lender before touring homes to verify what types of homes will be a good financial fit for you, your family, and your goals.

2. Second Home vs. Investment Property

Sometimes the terms "second home" and "investment property" are used interchangeably, however there are a few distinct differences.

• An investment property is purchased for the primary purpose of generating income, while a second home is not. 
• Second home loans are typically easier to qualify for than investment properties.
• Second home loans typically receive lower interest rates than investment properties.
• Investment Properties are able to depreciate even while they're appreciating in value:
  • Appreciation is when the value of the property increases over time.
  • Depreciation allows investors to recoup some of the costs of managing an investment property by claiming a tax deduction. Tax depreciation is a theoretical loss in value over time as a result of typical wear and tear. 
  • Taxes are difficult, so always consult a tax professional.

3. Renting Out Your Second Home

While owning a rental property can take a large initial investment, each time your property is rented out, you earn income that you may use to improve your property or help pay the mortgage. If you’re only planning to occupy your second home for a couple of weekends each month, it may be a great idea to set it up to rent out a week or two. Visit our investment property blog to learn more about the benefits. 

For tax purposes, a property is a second home if the owner lives in it for at least 14 days each year or 10% of the number of days it is rented out.

Typically, if the second home is rented out for less than two weeks per year, the owner can keep the rental income without paying taxes on it.

4. Why are People Buying Second Homes?

According to the National Alliance of Home Builders, the U.S. has a stock of 7.5 millions second homes as of 2018, reports predict that this number increased dramatically in the last two years due to the increase in availability (and sometimes necessity!) to work from home. Reason people are buying second homes include but are not limited to:

• Looking for a getaway from the city
• Looking for a place for the future
• Vacation Retreat
• Family Retreat
• Investment Property
• Retirement
• Being closer to friends and family

5. Things to Consider When Owning Two Homes

While it may seem pretty straight forward, it's important to consider the costs associated with owning two homes. Once you've purchased a second home, you'll be responsible for the following on both homes:

• Property taxes
• Insurance
• Furniture
• Utilities
• Possible HOA fees
• Security
• Maintenance

6. Kiddie Condo Loans

The name is slightly misleading, because "Kiddie Condo Loans" can actually apply to several types of residential real estate. So what do we mean when we say "Kiddie Condo Loan"??

A kiddie condo loan is an easier way for parents to purchase investment property, rent to their children or family members at market rate, and build equity. 

• These types of investment loans are administered by the Federal Housing Administration - Both the parents and the child or family member who will live in the home are on the loan.
• It's a great way for parents to help their children get into their first home.
• It's an alternative to renting an apartment or dorm in college
• It's an alternative to renting for seniors who need to be closer to family for help as they age. 
• Easier qualifying standards than a typical investment property. 

Let us know if you have any questions about buying a second home.

One of our experienced realtors will be in touch as soon as possible. 

We can start the process today!

Curious to learn more about investing in residential real estate? Read our blog about Twin Cities residential real estate investment to learn about some pros and cons, commercial versus residential real estate investing, and residential real estate investment strategies.

Let us know if you have any more questions, one of our Twin Cities realtors will be in touch as soon as possible!

• 1. Single-Family Investment Property
• 2. Multi-Family Investment Property
• 3. Commercial Residential Investment Property
• 4. Condominiums as Investment Property
• 5. Tax Benefits of Investment Property
• 6. Fair Housing is for Everyone

1. Single-Family Investment Property

When purchasing a single-family home as an investment property, most investors will simply break even the first few months to a year of ownership. After the first year or so, tax breaks and rental increases may result in earning a profit within a few years.

A huge benefit to investing in a single-family home is that you can use the profit from that investment to finance your next purchase. A con of investing in a single-family property is there is no economy of scale. For example, if you fix a roof on a four-plex, you have reroofed four units, which is 25% per unit. If you fix a roof on a single-family, your cost is 100% per unit.

If you're a handy person, sweat equity can pay off. By buying a fixer-upper, you can make well-planned and thoughtful updates that can increase the value of the property. Depending on local regulations, you may be able to rent the units at a higher price.

2. Multi-Family Investment Property

There are many benefits to investing in a multi-family property in the Twin Cities. Read our blog about the Top 4 Benefits of Buying an Investment Property. If the property is earning rental income when you purchase it, the debt-to-income ratio will be reduced, allowing you to purchase a bigger investment than if the property is vacant at the time.

With multi-family properties, the expenses remain flat while rental income has the potential to increase year after year. For example, you purchase your first duplex as an owner-occupant. At first, the property needs a little bit of elbow grease. You move in, and start updating the units bit by bit. Your first year of rental income is about $1,500 per month. As the years progress, you continue updating the units with things like new tile, new countertops, new stainless appliances, and many other beautiful touches. In a few years, that same duplex can be generating $1,635 per month, while your mortgage and maintenance costs remain the same as when you first bought it. That extra income each month can be used to finance your next home purchase or larger investment property. 

3. Commercial Residential Investment Property

Commercial residential properties are described as any residential property with five or more units. Commercial residential properties typically have more stringent financing requirements-- investors may be required to put as much as 50% down or more, depending on the current rental income of the property. One thing to consider before investing in a commercial residential investment property is that these types of properties may not be owner-occupied, therefore, they have different tax benefits than a regular multi-family property.

Currently in the Twin Cities, available housing inventory continues to remain low and prices continue to rise. When there is a high demand amongst would-be buyers, they turn to the rental market, making it easier to profit from owning a multi-family property, and less likely to deal with lengthy vacancies in your building.

4. Condominiums as Investment Property 

While ownership held in a condo is similar to other residential properties, ownership rights and how the property is managed is different.

• The space inside the condo unit belongs to the owner, as well as a share of the common spaces such as elevators, hallways, etc.
• Depending on the associations rules, you may have the opportunity to sublet the condominium.
• Some lenders view condos as a slightly higher risk, so they might require a higher down payment.
• There may be occupancy restrictions involved with a condominium. Many associations set a percentage limit of how many units can be part of the short-term rental pool. 

In some cases, a single-family detached home may be part of a condominium format.

• Some neighborhoods condominiumize their area and share amenities such as community centers, hiking trails, and other fun activities for all of the condo owners to enjoy.

No matter which type of condominium you intend to purchase, we always recommend reading the bylaws before entering into a contract. Many real estate contracts allow buyers a ten day right of rescission period to review all the necessary documents before moving forward with the purchase. It's also extremely important to read through the board meeting minutes to get an idea of how the association is run and the financials to determine if there is sufficient money in the reserves to pay for the imminent expenses of the common areas.

5. Tax Benefits of Investment Property

Historic home renovations can lead to more tax credits. Changing a well-built historic mansion into several apartments with architectural charm, you may be able to take a tax credit up to 20% of the cost of renovations.

• The home needs to be listed on the National Register of Historic Places, or located in a historic district.
  • With this type of investment, there are more guidelines to follow and rules about what can or cannot be changed due to local historical regulations.

  Low-income housing opportunities may also lead to tax credits, making it a desirable investment. When you invest in a historic home or a low-income housing opportunity you may be able to get a tax credit, which is typically more beneficial than a tax deduction. 

  • A $100 tax deduction in a 33% tax bracket might save $33 in taxes.
  • A $100 tax credit in a 33% tax bracket saves $100 in taxes.
    • Example: An investor has a $20,000 tax credit for building a low-income apartment building. The investor owes $45,000 in taxes for that year, but after applying the credit, their taxes are reduced to $25,000.

  Depending on the type of property you choose to invest in, you may also be able to write off the following expenses as tax deductions:

  • Mortgage Interest
  • Property Tax
  • Operating Expenses
  • Depreciation
  • Repairs
  • Insurance
  • Maintenance

  For more information, reach out to a licensed tax professional to learn about the different tax benefits for rental real estate property owners. 

  6. Fair Housing is for Everyone

  Remember, fair housing is for everyone. When investing in any type of rental property you must adhere to federal and state fair housing laws. The federal laws prohibit discrimination against the following classes:

  • Race
  • Color
  • National Origin
  • Religion
  • Sex
  • Familial Status
  • Disability

  In Minnesota, the following classes are protected in addition to the federal housing laws:

  • Marital Status
  • Creed
  • Public Assistance
  • Gender Identity

  Email us any questions you have about investing in residential real estate in Minneapolis, Saint Paul, or any of the surrounding communities.

  One of our Twin Cities realtors will be in touch as soon as possible.

   

   

REALTORS® Charitable Foundation at the Saint Paul Area Association of Realtors

• 1. What is Bridging?
• 2. What is the Dresser Build Volunteer Event?
• 3. When and Where is the Dresser Build Volunteer Event?
• 4. Sign up!

1. What is Bridging?

Bridging is a local nonprofit that has recently been awarded a donation of $100,000 from the Realtors Charitable Foundation at the Saint Paul Area Association of Realtors (SPAAR). Bridging is the perfect beneficiary for such an award, and their goals go hand in hand with what SPAAR Realtors work to achieve every day--better communities.

Bridging's website says it best, "Bridging, a 501(c)(3) nonprofit organization primarily serving the Twin Cities, provides donated furniture and household goods to families and individuals transitioning out of homelessness and poverty. Bridging gives hope and a leap towards housing stability. With locations in Roseville and Bloomington, Bridging is driven by volunteers and donations of basic home essential items from the community." 

Watch this touching video, Building a Legacy of Hope, to learn more about the history of Bridging from the founder, Fran Heitzman. 

2. What is the Dresser Build Volunteer Event?

The Realtors Charitable Foundation has organized a stellar event with the goal of building 800 dressers in three days! Realtors, friends, family, and community members from far and wide will come together in May of 2022 to work towards this ambitious goal. There is no experience necessary to participate in this fun event! Since Minnesota spring weather is not to be trusted,  SPAAR is providing a large tent in case of rain, so be prepared for any type of weather!

A delicious barbecue lunch of hotdogs, chips and cookies will be provided for volunteers starting half an hour before the volunteer shifts, so bring your friends and don't miss this wonderful opportunity for a great time!

Help us all make the Twin Cities a welcoming community for all!

3. When and Where is the Dresser Build Volunteer Event?

May 23, 2022 at 1:30 - 4:30

May 25, 2022 at 1:30 - 4:30

May 26, 2022 at 11:00 - 2:30

LOCATION:

SPAAR - Saint Paul Area Association of Realtors

325 Roselawn Avenue E, Saint Paul, MN 55117

Free lunch included! All are welcome!

Builders must be 14 years of age or older.

4. Sign Up!

This volunteer event is open to everyone over the age of 14! The Realtors Charitable Foundation is looking for over 200 volunteers, so please spread the word! Sign up for a shift on the Realtors Charitable Foundation website. The HIVE Real Estate Team will be building dressers on May 26th at 11:00, we hope to see you there!

As Twin Cities realtors, we're often asked, "Can I buy a duplex with an FHA loan?". The answer is yes! In fact, Megan just bought her home with an FHA loan in Saint Paul, Minnesota. Read our blog to learn more about the process of buying a duplex with an FHA loan.

Let us know if you have any more questions, one of our Twin Cities realtors will be in touch as soon as possible!

• 1. What is an FHA Loan?
• 2. Buying a Duplex with an FHA Loan
• 3. FHA Home Appraisal
• 4. Rental Income
• 5. Tax Benefits
• 6. Housing Flexibility

1. What is an FHA Loan?

FHA loans are insured by the Federal Housing Administration through the U.S. Department of Housing and Urban Development (HUD). The administration insures your loan, so that your loan officer can get you a better deal and help people of all walks of life become homeowners. These types of loans often offer low down payments (as little as 3.5%) and have easier credit qualifications than a typical conventional loan.

2. Buying a Duplex with an FHA Loan 

Buying a duplex with an FHA loan is very similar to buying a regular, single-family home. There are a few extra hurdles, but it can be well worth it! The process starts with getting pre-approved with a lender you trust. We always recommend interviewing 2-3 lenders to find someone who is going to work hard and secure the best interest rate. Make sure the loan officer you intend to work with has the ability to process FHA loans.

A common misconception among buyers is that you need to put 20% cash down in order to purchase a house. In reality, you can put anywhere from 3 percent to 20+ percent depending on your finances. Since the FHA program allows a down payment as little as 3.5%, many first-time homeowners can take advantage of the opportunity to start building equity! 

One thing to consider is that when you purchase a home with a down payment of less than 20 percent, you will be required to pay Private Mortgage Insurance (PMI) until you've put 20% equity into the property. Typically in the Twin Cities, PMI adds around $200-$300 per month onto your mortgage payment depending on the house you are buying and the amount of the mortgage. 

In addition to paying Private Mortgage Insurance, buyers with an FHA loan are required to live in the property for at least one year. 

3. FHA Home Appraisal

In addition to paying Private Mortgage Insurance, buyers looking to purchase a duplex with an FHA loan will require an FHA appraisal. An FHA home appraisal is very similar to an appraisal for a conventional loan and determines an estimate of the market value of the property. The U.S. Department of Housing and Urban Development has a roster of qualified, FHA approved appraisers, that your loan officer will hire as an unbiased third-party to estimate the market value and ensure the property is in good condition. In the event the appraiser finds hazardous items requiring repair, such as peeling paint or loose electrical wires, the sellers will need to mitigate those issues prior to closing.

4. Rental Income 

The real beauty of buying a duplex is the rental income you will earn each month to help pay your mortgage. Whether you're hosting long-term tenants or vacation getaways on Airbnb, your property will generate income, and in turn help you build equity and pay off your mortgage faster. A duplex that is already leased out can also help your loan officer qualify you for a higher loan amount. They will use 75% of the income generated from the current lease when calculating your pre-approval. 

• Owner-occupied rental property: Live in one unit and rent out the other!
• Vacation Rental: Renting your property for short term vacation getaways can have high income earning potential. 
• Long-term Tenants: Having tenants on an annual lease ensures you get rental income each month and there is less variability compared to short term rentals.

5. Tax Benefits

• You may be able to deduct the following expenses from your tax return:
  • Mortgage Interest
  • Property Tax
  • Operating Expenses
  • Depreciation
  • Repairs
  • Insurance
  • Maintenance
• For more information, reach out to a licensed tax professional to learn about the different tax benefits for rental real estate property owners. 

6. Housing Flexibility

Owning rental property can open the door to housing flexibility in the future. Perhaps your job gives you the option to work remotely. After living in your duplex for one year, you could rent out your unit while traveling the world. In the meantime, your home is generating rental income to help pay off your mortgage--and maybe your vacations! The rental income earned on in your duplex could also help fund your next property!  

Email us any questions you have about buying a duplex with an FHA loan in Minneapolis, Saint Paul, or any of the surrounding communities.

One of our Twin Cities realtors will be in touch as soon as possible.

Have you been thinking about downsizing from a house to a condo? People all over the Twin Cities area are getting ready to move into a smaller home, and it might be the perfect time to do so. Read our blog to find out some of the benefits to downsizing from a house to a condo and how you can do it in the best way for you and your wallet.

• 1. Should I Downsize From a House to a Condo?
• 2. Benefits of Downsizing From a House to a Condo
• 3. How to Downsize From a House to a Condo
• 4. Start Downsizing Today!

1. Should I Downsize From a House to a Condo?

Many Twin Cities residents are thinking of making the switch from being Single-Family homeowners to condominium homeowners. In 2022, the demand for homes is high, but the condo market has been easier to navigate as a buyer. Read our blog about 10 Reasons to Sell Your Home Now to see if it's the right move for you.

There are many similarities and differences between the two styles of living. Here are some reasons people choose to downsize from a house to a condo:

• Your kids have moved out of the house and you have a lot of extra space.
• You want to diversify your real estate portfolio - Downsizing may allow you to buy a second home in a different location. Ready to be a snowbird?
• You like to build community and share common space with others.
• You want to continue building equity, but no longer want to do yard work or be solely responsible for costly home expenses.
• You want access to many of the great amenities offered in condominiums.
• Your health has changed or your mobility is limited.

2. Benefits of Downsizing From a House to a Condo

There are many different benefits to consider before downsizing from a house to a condo. Depending on your stage in life, it may be the perfect option for you. Whether you've just experienced a big lifestyle change or you're preparing to retire and hope to split your time between the Twin Cities and somewhere with a warmer climate, check out some of the benefits of condo living:

• Condos typically require less maintenance (interior and exterior).
• Condos may have less square footage to furnish and maintain.
• Many condominiums, including converted mansions, in the Twin Cities have elevator access and/or one-level living.
• Homeowner's Associations (HOA) typically are in charge of maintaining the building, including expensive repairs such as roofing and landscaping.
• Some HOA fees include utility bills such as heat, electricity, wifi, etc, which can lower the number of monthly payments a condo owner is responsible for. 

3. How to Downsize From a House to a Condo

The first step to downsizing from a house to a condo is to meet with an experienced realtor to discuss your history, future goals, and your motivations. The HIVE team of Twin Cities realtors are not only experienced, but have the patience and hard work ethic to help you achieve all of your real estate goals. Visit our blog about selling your home for a step by step guide about what to expect during the selling process. 

Transitioning from a single-family home to a condominium can be quite a different experience, but with The HIVE's experience throughout the Greater Twin Cities region, we can be sure to provide excellent service, step-by-step assistance, and vast knowledge of the current market.

To get started downsizing today, we provide tips on our blog with 4 steps to prepare your home for sale. 

Start Your Downsizing Journey Today!

Contact us to start touring homes for sale today! We will provide you with a Competitive Market Analysis of your home and assist you throughout the entire process of downsizing from a house to a condo.