A St. Paul flip is rarely just paint and floors. Century-old houses hide knob-and-tube wiring, tired boilers and lead paint, and the city adds its own steps: a Truth-in-Sale of Housing report before you list, and code compliance work on any registered vacant building.
In short: LendingStreet funds fix and flip loans on 1-8 unit St. Paul properties from $150,000 to $5M+, covering up to 90% of cost and up to 100% of rehab on some programs, with closings in as little as 10 days. Loans are short-term and interest-only, and you exit by selling or refinancing into a DSCR loan. The St. Paul budget has to cover city inspections, permits and winter carrying costs, not only the renovation.
The common St. Paul flip is a 1910s to 1930s story-and-a-half or two-story home in Como, Hamline-Midway, the North End, Payne-Phalen or Dayton's Bluff, bought from an estate or a tired landlord. Buyers in Highland Park, Mac-Groveland and St. Anthony Park pay more for finished homes, but acquisition prices there leave less room.
Duplex flips are common too. Some investors renovate both units and sell to a buyer who will live in one; others refinance and hold. Either way, our fix and flip loan is a business-purpose loan on non-owner-occupied property during the rehab.
St. Paul requires a Truth-in-Sale of Housing (TISH) evaluation before most homes are listed for sale. The report is disclosed to buyers, so plan to fix items it flags or price them in. Order it once your work is done so it reflects the finished house.
Many flip candidates sit on the city's vacant building list. Depending on the category, the city may require a code compliance inspection and completion of the listed work before anyone can occupy the home, along with an annual registration fee. Ask the city what category the house is in before you make an offer, because it changes your scope and timeline.
This example is illustrative and not a quote. An investor buys a 1920s Como home for $225,000 and plans an $80,000 rehab: new kitchen and bath, electrical updates, a high-efficiency furnace and refinished floors. The expected resale value after repairs is $385,000.
The loan covers 90% of the purchase and 100% of the rehab, for a total of $282,500, with rehab money released in draws. Estimated interest-only payments run about $2,354 a month once the rehab is fully drawn; over 7 months that is about $16,479. The investor brings about $29,000 at closing, including closing costs.
After closing costs, holding costs, interest and about 7% in selling costs, the estimated profit is about $25,521.
| Item | Amount |
|---|---|
| Purchase price | $225,000 |
| Rehab budget | $80,000 |
| Loan (90% of purchase + 100% of rehab) | $282,500 |
| Purchase closing costs | $6,500 |
| Taxes, insurance, utilities (7 months) | $4,550 |
| Estimated interest (7 months) | $16,479 |
| Selling costs (about 7%) | $26,950 |
| Resale value | $385,000 |
| Estimated profit | $25,521 |
Electrical, plumbing, mechanical and most structural work need permits from the Department of Safety and Inspections. Minnesota also requires residential building contractors to be licensed by the state Department of Labor and Industry. Lenders and later buyers both look for finaled permits, so pull them and close them out.
Expect lead-safe work practices on pre-1978 homes, and budget for egress windows if you are adding or legalizing basement bedrooms.
Exterior work, roofs, siding and concrete are easiest from late spring through fall. A house bought in November can still be renovated inside, but heat, snow removal and frozen-ground limits add cost. Many St. Paul flippers buy in late winter so the house hits the market in spring, when buyer traffic is strongest.
Build at least one extra month of interest and utilities into any winter project.
The rehab portion is held back and released after inspections confirm completed work. Match your contractor's payment schedule to that draw schedule so you are not funding large stages out of pocket.
Keep receipts and lien waivers for each stage. Minnesota mechanic's lien law gives contractors and suppliers lien rights, and clean waivers protect both the sale and any refinance.
If the numbers favor holding, the exit is a DSCR refinance. St. Paul's rent stabilization ordinance generally caps increases on covered units, but setting the first rent on a vacant renovated home is a separate question, so confirm how the current rules apply. Our St. Paul DSCR and rate-and-term refinance pages show how that exit is sized.
Resale value is the number that decides a flip, so build it from real sales. In St. Paul, finished homes sell differently on either side of major streets such as Lexington Parkway, Snelling Avenue and Rice Street, and a block near Como Lake or the Green Line can carry a premium over one a few streets away. Use renovated sales from the last several months, on similar lots, with the same bedroom and bathroom count you plan to deliver.
Buyers here also notice basements. A dry, finished lower level with legal egress adds usable space in a city full of story-and-a-half homes with small upper bedrooms, but only if the work is permitted. Keep the scope matched to the neighborhood so you do not over-improve for the street.
Finally, plan the sale price with the TISH report in mind. A clean report with few required items reassures buyers and their lenders, while a long list can invite lower offers even after you have fixed everything.
Send the address, purchase price, scope of work, budget and expected resale value through the form below or call (877) 298-1001. We will size the loan, explain the draw process and tell you how quickly we can close. You can also compare our Minnesota fix and flip page.
Up to 90% of the purchase cost and up to 100% of the rehab on some programs, from $150,000 to $5M+.
In as little as 10 days when the file and title are ready.
For most St. Paul homes, yes. The Truth-in-Sale of Housing evaluation must be done before listing and disclosed to buyers.
Often, yes. Expect the city to require code work before occupancy, so the scope and timeline need to reflect it.
Experience helps leverage and pricing. Newer investors can qualify with a solid budget, a licensed contractor and reserves.
Yes. Fix and flip loans are short-term and interest-only, and interest is charged on funds as they are drawn.
Yes. Many investors refinance a finished rental into a DSCR loan that qualifies on the rent.
Yes, across Ramsey, Washington and Dakota counties and the rest of Minnesota.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.