Minneapolis List of Boarded/Condemned Properties
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Within the last several months, most customers that I am working with are looking to buy foreclosed houses, rehab them, and then rent them out for a nice cash flow. They are then waiting for the day when they can sell them for a nice profit (as they own them after rehab at 75% LTV). I wrote about flipping houses in the $30-50k price range in Minneapolis several months ago, but there continues to be outstanding deals to be found in this niche.
When we find a house that we may want to make an offer, we check the City of Minneapolis Chapter 249 List. This list is updated about every 30 days and has condemned and boarded houses on it. If a house is on this list, it has most likely lost any grandfather status and will be required to be brought up to current building codes (which can add thousands of dollars to the rehab). If a house stays on this list for too long, it can be scheduled for demolition. I suggest you stay away from those!
Lastly, I always write a clause into any purchase agreement for bank-owned properties that reads as follows:
Buyer and seller agree that if property is condemned, loses its zoning, has new code compliance orders issued, or otherwise changes status with any governmental jurisdiction prior to closing, the buyer may cancel this purchase agreement by written notice to the seller’s agent and all earnest money will be returned to the buyers.
These couple steps are just a little extra protection when buying bank-owed real estate.
Have you always wanted to buy rehabs and fix them up, but never knew where to start? Don’t Wait! Get Started now.
Scott Ficek is a Minnesota Real Estate Agent with Keller Williams Integrity in Minneapolis and helps new and seasoned investors buy and own Investment Real Estate. He owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or receive his blog via your RSS Feed or in your Email.
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- Pingback by Minneapolis List of Boarded/Condemned Properties | ImmediateRealEstate.com on January 28, 2008 @ 7:24 am
Hi Scott,
I read the list. One of the houses on here is a home my client bought and has now rehabbed. The address is 1211 Irving Avenue North. It’s a beauty! I just posted the before and after pics on my blog yesterday. I hope you have time to check it out!
Hey Jeanie-
Looks like your customer got a great place there. That is exactly what we are doing in North Minneapolis ourselves. Finding these houses for $40k that need work and renovating them.
You should tell people on your blog how the numbers worked out for that property. I am sure they would be amazed at the numbers.
Looking for US property advice so your site is a great help