Selling a renovated house in Minneapolis starts with paperwork most flippers in other states never see: a Truth in Sale of Housing evaluation before listing, and in many first-ring suburbs a city time-of-sale inspection as well.
In short: LendingStreet finances fix and flip projects across Minneapolis, St. Paul and the suburbs on 1 to 8 unit investor properties, from $150,000 to $5M+. On some programs we cover up to 90% of total cost and up to 100% of the rehab, close in as little as 10 days and keep payments interest-only. Twin Cities flips need a plan for required sale evaluations, Minnesota's deed tax and winter construction.
In Minneapolis, Longfellow, Nokomis, Standish-Ericsson and Northeast have early twentieth century homes and duplexes that resell well when renovated. North Minneapolis, including Jordan, Folwell, Webber-Camden and Cleveland, offers lower entry prices with more condition risk. Powderhorn and Phillips sit in between.
In St. Paul, Frogtown, Payne-Phalen and the East Side are active investor areas. First-ring suburbs such as Richfield, Crystal, Robbinsdale, New Hope, Columbia Heights, Brooklyn Center and Fridley have 1950s ramblers and split-levels that make steady flip candidates.
| Area | Typical housing | Common rehab scope |
|---|---|---|
| Longfellow, Nokomis, Northeast | 1910s-1930s homes and duplexes | Kitchens, baths, electrical, basements |
| North Minneapolis | Older two-story homes | Full systems, roofs, exterior |
| St. Paul East Side, Frogtown | Older singles and duplexes | Systems, structure, code items |
| Richfield, Crystal, Columbia Heights | 1950s ramblers and split-levels | Kitchens, baths, flooring, windows |
Older Minneapolis homes often have stone or block basements, old boilers or aging forced-air furnaces, and electrical that needs updating. Ice dams can damage roofs and interiors, so check attic insulation and ventilation along with the roof itself.
Winter is long, and exterior work such as roofing, siding, concrete and grading is hardest from December through March. Many investors plan interior-heavy projects for winter and schedule exterior work for the warmer months.
Our fix and flip program covers single-family homes and 2 to 8 unit buildings, with loans from $150,000 to $5M+. Depending on the program, financing can reach 90% of the total project cost and 100% of the renovation budget, and closings can happen in as little as 10 days.
You pay interest only while you own the property. Renovation funds are released through a draw process after each stage of work is inspected, rather than all at once. Our investor loans are business-purpose loans on non-owner-occupied property.
This example is illustrative and not a quote. An investor buys a 1920s story-and-a-half in Longfellow that needs a kitchen, an updated bath, a finished upper level, electrical work and a new furnace. The purchase price is $255,000, the rehab budget is $75,000 and the after-repair value, based on renovated sales nearby, is $405,000.
At 90% of the purchase price plus 100% of the rehab, the loan is $304,500, about 75% of the after-repair value. The estimated monthly interest-only payment on the full loan is about $2,664, and the plan is a 6-month hold. For simplicity the example assumes the full loan amount accrues interest for the whole hold.
After an estimated 7% in selling costs, the projected profit is about $20,089 on roughly $52,061 of cash invested. If the sale takes three months longer than planned, added interest and carrying costs of about $10,093 would cut the profit to about $9,996, which is why a realistic timeline matters as much as the rehab number.
| Item | Amount |
|---|---|
| Purchase price | $255,000 |
| Rehab budget | $75,000 |
| Loan (90% of price + 100% of rehab) | $304,500 |
| Estimated monthly interest-only payment | $2,664 |
| Interest over 6 months | $15,986 |
| Taxes, insurance and utilities | $4,200 ($700 a month) |
| Buy-side closing costs (estimate) | $6,375 |
| Selling costs (about 7%) | $28,350 |
| Sale at after-repair value | $405,000 |
| Estimated profit | $20,089 |
| Cash invested (down payment, closing, carry) | $52,061 |
Minneapolis and St. Paul both require a Truth in Sale of Housing evaluation before a home is listed for sale, and some items found may need to be repaired. Many suburbs, including several first-ring cities, require their own time-of-sale inspection, and some require repairs before closing or escrow for them.
Building permits are issued by each city. In Minneapolis, renovation permits run through the city's development review and inspections process. If you plan to rent the property instead of selling, Minneapolis also requires a rental license.
Minnesota charges a state deed tax on the sale price, customarily paid by the seller, and a mortgage registry tax when a mortgage is recorded. Both should be in your purchase and resale numbers.
Non-homestead residential property in Minnesota does not get the homestead market value exclusion and is classified differently from an owner's home. Ask the Hennepin or Ramsey County assessor about the expected bill rather than using the seller's.
Our Minnesota fix and flip page covers the program statewide.
When the work is done, you can list the property and pay off the loan at closing, or you can lease it and refinance into a DSCR loan with a 30-year term available, qualified on the rent rather than W-2s or tax returns.
If the resale market softens, a DSCR refinance lets you hold the home as a rental, though Minneapolis rental licensing applies. See the local DSCR loan page for how those loans size.
The more of this you have on day one, the sooner we can size the loan and schedule closing.
We finance investor rehabs throughout Hennepin, Ramsey, Anoka, Dakota and Washington counties. Share the deal basics, including price, scope, budget and timeline, and the team will review the file and lay out the loan amount and next steps.
Request a quote with the form below or call (877) 298-1001.
Yes, in Minneapolis and St. Paul. The evaluation must be done before listing, and some items found may require repair.
Many do. Several first-ring suburbs require a time-of-sale inspection and sometimes repairs or escrow before closing, so check the city's rules early.
By custom the seller pays the state deed tax, so include it in your resale costs. A separate mortgage registry tax applies when a mortgage is recorded.
Yes, but plan interior work for the coldest months and leave exterior items such as roofing and concrete for spring through fall.
Fix and flip loans run from $150,000 to $5M+ on 1 to 8 unit investor properties.
It is held back at closing and released in draws as work is completed and inspected.
Yes. Many investors refinance into a DSCR loan that qualifies on the property's rent, with no W-2s or tax returns.
Yes. LLC borrowers are standard on our investor loans.
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