Purchase & financing
What you pay to get in, and the loan that gets you there.
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Minneapolis median sale price is ≈ $355,000 (2026); most investor buys land below the median.
% of price
Title, lender fees, escrows. Minneapolis deals often land 2–3%.
%
Investor loans typically require 20–25% down.
% / yr
Starting default — replace with your lender's actual quote.
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Work needed before the first tenant moves in — including anything the city's rental-license inspection orders. Paid in cash.
Rent & income
Use real market rent from recent leased comps — not the listing's promise.
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Minneapolis median listed rent is ≈ $1,600 across all property types; single-family houses typically lease higher — verify against leased comps on your street.
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Parking, laundry, pet fees, RUBS.
%
5% ≈ 18 vacant days a year. Don't skip this line.
Operating expenses
Everything it costs to own the place, before the mortgage payment.
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Minneapolis median effective rate ≈ 1.30% of value, and rentals are taxed non-homestead (no homestead exclusion), so budget higher — pull the actual figure for the address from Hennepin County.
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Landlord (DP-3) policy, not a homeowner policy. Minnesota premiums have climbed with hail and storm claims.
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Every Minneapolis rental needs a city license, renewed by March 1. Tier 1 single-unit: $98 building + $41 per unit = $139/yr. Tier 2–3 properties pay more, plus supplemental fees.
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Minneapolis bills water, sewer, stormwater, and garbage to the property, so most landlords carry it — roughly $90–$140/mo for a house.
% of rent
% of rent
Roof, furnace, water heater — the big-ticket items that arrive eventually.
% of rent
Minneapolis managers typically charge 8–10% plus a leasing fee. Include it even if you self-manage today — your time has value, and a future buyer will underwrite it.
Long-term outlook
Used for the equity snapshot — where this property puts you over time.
% / yr
Minneapolis prices rose roughly 4–5% in the last year; 3.5% is a deliberately cooler long-run planning figure.
The buy & the rehab
Profit is made here — on the purchase price and a rehab number from a real contractor walkthrough.
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Minneapolis median single-family sale price is ≈ $360,000 (2026). From sold comps adjusted for condition — not list prices, not estimates.
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Much of Minneapolis housing stock is 100+ years old — knob-and-tube wiring, cast-iron drains, and old boilers are the usual surprises.
% of rehab
For what you find behind the walls. 10–15% is standard discipline.
% of price
months
Minnesota winters slow both rehabs and buyers — a project started in fall usually carries longer.
Financing
Hard money and private loans are interest-only — the points and rate both count.
% of price
Share of the purchase price the lender funds. Set 0 for an all-cash buy.
% / yr
% of loan
Holding & selling
Every month you hold it, the property charges rent to you.
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At Minneapolis's non-homestead rates — about 1.4% of value per year on a flip-priced house.
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Vacant / builder's-risk policy while you renovate.
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Includes keeping the heat on through a Minnesota winter so pipes don't freeze.
% of ARV
Commissions, closing costs, and concessions — plus Minnesota's state deed tax and the city's Truth in Housing evaluation every Minneapolis sale requires.
% of ARV
The classic 70% rule: max offer = (ARV × target %) − rehab.
How every number is calculated
- Loan amount = purchase price − down payment.
- Monthly payment (P&I) = standard amortization:
P × r ÷ (1 − (1 + r)^−n), where r = annual rate ÷ 12 and n = term in months. - Total cash invested = down payment + buyer closing costs + upfront repairs.
- Effective income = (rent + other income) × 12 × (1 − vacancy %).
- Operating expenses = taxes + insurance + city rental license + HOA + owner-paid utilities + maintenance, CapEx, and management (each as % of scheduled rent). Debt service is not an operating expense.
- NOI = effective income − operating expenses.
- Cash flow = NOI − annual debt service (P&I).
- Cap rate = NOI ÷ purchase price. Cash-on-cash = annual cash flow ÷ total cash invested.
- DSCR = NOI ÷ annual debt service. Most lenders want 1.20 or higher.
- 1% rule: monthly rent ÷ purchase price. GRM = price ÷ annual scheduled rent.
- Equity snapshot: future value = price × (1 + appreciation)years; loan balance from the amortization formula after that many payments; equity = future value − balance. Snapshot excludes selling costs and taxes on a future sale.
Minneapolis specifics in these numbers
The local rules and costs the defaults are built on.
- Non-homestead taxes. Minneapolis's median effective property-tax rate is ≈ 1.30% of value, and a rental gets no homestead exclusion — budget roughly 1.4%+ and confirm the parcel's actual bill with Hennepin County.
- Rental license. Every Minneapolis rental needs a city license, renewed by March 1. A Tier 1 single unit runs $139/yr ($98 building + $41/unit); Tier 2–3 properties pay higher per-unit fees plus a supplemental fee.
- City utility bill. Minneapolis charges water, sewer, stormwater, and solid waste to the property itself, so most landlords carry it even when tenants pay gas and electric.
- Selling in Minneapolis. Every sale requires a city Truth in Housing evaluation, and Minnesota charges a state deed tax — both are folded into the 7% selling-cost default in Flip mode.
- Where prices sit. City median sale price ≈ $355,000 and median single-family ≈ $360,000 (2026) — the defaults sit below the median because that's where Minneapolis investor deals actually trade.
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Monthly cash flow
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Cash-on-cash return
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Annual cash flow ÷ cash invested
Cap rate
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NOI ÷ purchase price
Cash invested
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Monthly mortgage (P&I)
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Annual breakdown
Year one, at today's rent and expenses.
| Scheduled rent + other income | — |
| Less vacancy | — |
| Effective income | — |
| Property taxes | — |
| Insurance | — |
| Minneapolis rental license | — |
| HOA | — |
| Owner-paid utilities | — |
| Maintenance reserve | — |
| CapEx reserve | — |
| Management | — |
| Net operating income (NOI) | — |
| Debt service (P&I) | — |
| Annual cash flow | — |
Quick checks
Rules of thumb are a first screen, not a verdict — the full numbers above decide.
1% rule
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DSCR
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Gross rent multiplier
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Lower is better
Equity snapshot
| Projected value | — |
| Loan balance remaining | — |
| Principal paid down | — |
| Projected equity | — |
Before selling costs and taxes. Appreciation is an assumption, not a promise — the cash flow above is what you can underwrite today.
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Projected net profit
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Return on cash invested
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Profit margin on ARV
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Profit ÷ sale price
Cash you bring
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Total cost minus the loan
Max allowable offer
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Project cost breakdown
Every dollar between buying it and selling it.
| Purchase price | — |
| Buying closing costs | — |
| Rehab (incl. contingency) | — |
| Financing — points | — |
| Financing — interest | — |
| Holding costs | — |
| Selling costs | — |
| Total project cost | — |
| Sale price (ARV) | — |
| Net profit | — |
The walk-away test
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Set your max price before you tour the house — not after you fall in love with it. If the seller won't meet it, there is always another house. There is not always another profit.
Looking at a deal in Minneapolis?
Send Allison the address before you offer. She'll run it with real sold comps, the parcel's actual Hennepin County tax record, and a contractor's eye — the three places web calculators can't help you. “I help regular people build wealth through real estate.”