In the past couple of months I’ve had multiple people contact me as they explore housing options for their kids as they head off to college – either as an undergraduate coming from overseas to attend college in the US, or somewhat more locally, students from other parts of the US to pursue a graduate degree here in MN.
One parent in particular said that he had focused on tuition costs while saving for college and didn’t really give much thought to the fact that housing alone would be another $1000-$2000 / mo. Ouch. And that is to share a dorm room with between one and 3 other people.
So, maybe you start to think about renting an apartment instead? Well, rents here are not any better even if your space may be larger. Is renting a space the best way to spend your housing dollar? Possibly! But another thing to think about is buying a place and reaping the rental rewards for yourself, while enjoying possible tax benefits and putting your dollars toward an asset that you can eventually sell.
I used nerdwallet to see if this would be a “smart” move and made some assumptions – one that you’re buying a condo or a home with a purchase price of $300K and that because your family member is living there that you can put 20% down (not 25% as in an investment property). I also assumed that the interest rate would be around 3.5% which is actually HIGH for loans these days if you have decent credit. Why the BIG arrow and the underline and the exclamation point? Well, look at that payment!
This week I viewed condos that could have 3-4 students in them and were NICE listed at around $300K, walking distance or easy public transit to the U and they were getting $3000/mo in rent.
I’m quite literally sitting here wishing that I had $60K to put down RIGHT NOW so I could buy that condo and start bringing in an additional $1500/mo in rental income. (ok – this is a goal of mine for my own kid and yes, she’s only 12, and, ok, she may not attend the UMN, BUT!!!, I still have deep desires for income properties near the U.)
Median sales price in Marcy Holmes by the U over the past 3 years compared to the Twin Cities as a whole.
MLS / Infosparks 6/26/2020
I even like this graph that shows that days on market are longer there – more of a buyers market! 🙂
MLS / Infosparks 6/26/20
OK – today’s video is a little tour of the area. I hope you like it. Let me know if you have questions!
I’m staying closer to home this week and highlighting another great neighborhood in south Minneapolis. I like to drive through here and let my jaw hang open looking at all of the beautiful homes.
#1 The homes…
This neighborhood is just chock full of very well cared for old homes. If you like the character and quality of homes built in the 1920’s, Tangletown is the place. Watch the video for a peek at the homes there, or just take a gander at the photo for this post which I took on a walk a few days ago.
Tangletown also has a row of Lustron homes along Nicollet Ave. One came up for sale last year and I was able to view it. It was like walking into a museum show piece – the owner had kept everything original and used period furnishings as well, but added a private outdoor patio / entertaining space that was ogle-worthy. If you’ve never seen a Lustron home read this article written about that particular home. It’s not everyone’s cup of tea, but I love that there is still room for different home styles and tastes.
Photo credit to Creator: Benjamin Clasen Copyright 2019
If you are looking for history and charm this neighborhood should be at the top of your list. And it’s positively bucolic – the winding streets, well landscaped yards, terraced gardens, and mature trees give you the very best of what a city neighborhood can offer.
#2 I love a walkable neighborhood!
This is definitely a residential area, but as is typical in Minneapolis you’ll see little corners within neighborhoods that have a coffee shop, cafe or little boutique of some sort. On the larger streets – Nicollet, Lyndale or 50th there are little shopping centers and more to offer.
Tangletown has within its borders: Kowalski’s grocery, Starbucks and Caribou coffee, one of the best stocked liquor stores in the city – South Lyndale Liquors. If you need some obscure liquor to make your special cocktail they likely have it, along with a large selection of local craft beers. The Washburn library is a friendly place with a wide selection of books and activities and they are happy to help you get a copy of whatever you’re looking for brought to this branch. On Nicollet you can get your bagels or other fresh breads and sandwiches at Sunstreet Bread or St. Louis Bagelry. I like to throw a little love toward the local Ace hardware stores here too – Tangletown has one, and I have found them to be the most helpful places to buy whatever you need for your home. If you want some farm to table food and an outdoor patio – head to Wise Acre Eatery. And one of the best garden shops in the city – Tangletown Gardens – is located right next door.
And schools are walkable too! Washburn High School and Justice Page Middle School are located within Tangletown.
#3 Bike paths!
Ok – this isn’t unique to Tangletown, but they are right on one of the BEST bike paths in the city. The one that follows along Minnehaha Creek and connects the chain of lakes to Minnehaha Falls.
I should probably change the heading to “Minnehaha Creek” because it’s not just the path, but the creek itself. We often walk along the path and my dog loves to jump in for a swim. People also kayak or float on inner tubes down the creek in the summer. Just make sure you get off the creek before you hit the falls!
Last year I saw some kids fishing there and they pulled out an ENORMOUS fish. And it wasn’t the largest caught in the creek – check out this story from MPR on a monster sturgeon caught in the creek last year:
Photo from Owen Sanderson
#4 Easy Access to Downtown
If you live in Tangletown you can be in the heart of Minneapolis in literally 10 minutes via the freeway (35W). Your commute can’t get much better than that.
So you get that neighborhood feel, walkable amenities, outdoor fun AND easy access to the more urban parts of Minneapolis.
Where it’s at!Median home prices for Tangletown over 3 years as compared to TC Metro
I don’t live there, but I think it would be way better than a sharp stick to the eye. (My mom says that… sorry if you’re grossed out).
I do, however, spend time in Victoria whenever I get the chance.
My favorite things to do there are camp in the Carver Park Reserve – it’s not crowded, it’s clean, there is a really nice little beach, and a LOT of walking/hiking trails.
I also like camping there because it’s short trip into this adorable town for a civilized lunch, a glass of beer and / or an ice cream cone. I like my camping with a side of delicious food that I don’t have to cook. Haters… save it.
Victoria is located near the Landscape Arboretum and the UMN Apple House so you can get first dibs on the apple crop. Minnesotans are very in tune with apple varieties and that may be because the U breeds apples (is that the right term?) – they experiment and develop new varieties. Love your Honey Crisp? Thank the UMN. Into SweeTango’s … UMN.
Anyway – I’ve been out there a lot lately and not minding a bit. Check out what Victoria has to offer. Let me know if you have questions or ideas about another place you’d like to see. 🙂
I’ve been viewing and showing homes a lot in the western suburbs of the Twin Cities lately and one of the suburbs is Chaska. It’s super charming!
Chaska, MN
Chaska has a sweet old historic downtown. It’s beautiful and you can imagine grabbing an ice cream an spreading a blanket out on the lawn to listen to a band play in the gazebo. The buildings are primarily made with what I think of as Chicago style brick -and I LOVE that.
Chaska has a really lovely park with a beach, event space, and playground. And this charming downtown is surrounded by some older homes, but primarily newer subdivisions.
Short post – but watch the video to see what Chaska has to offer! Let me know if you have questions or drop a comment below, I’d love to know if there are other neighborhoods or topics that you’s like to know about. 🙂
I’m posting this on Memorial Day and it’s the start of summer, but we have some different challenges to deal with this summer while we still try to have as much fun as possible in the warm weather. So with that in mind I am presenting my list of 6 things to do this summer that are really fun and still allow for social distancing. #6 is INSANE and the one I most want to do. 🙂
Best things to do in Minneapolis / Best things to do in the Twin Cities
Minneapolis has palm trees! NOT
#1: Regular theaters are closed, but this may mean the rebirth of the drive-in! Minnesota still has several that have hung on and our love of movies and lack of theaters may be the shot in the arms that these theaters need. 🙂 My first pick is the Elko Drive-in theater. No, it’s not down the street from my house, but it’s more than a movie. Its a DRIVE-IN! When I was a kid my mom used to take us in the station wagon and we had our sleeping bags in the back and snacks ready. The “kid” movie was usually first and then they would play one for adults – thinking kids would have knocked out by then? The beauty of it then was that you paid by the car, not the person. Mom loved this. Unfortunately, Elko prices by the person $10 for adults and $5 for kids 12 & under. You can see what’s playing here: https://www.elkospeedway.com/drivein/
Minnehaha Falls
#2: Minnehaha Falls & Sea Salt Eatery
If you’re in the city head over to Minnehaha Falls and walk the trails. You can really work your glute muscles by climbing the stairs back up from the Falls when you’re done, about a 100 steps – you can challenge your family & see who wimps out – and even if they do they still have to get up there somehow, so see ya at the top! If it’s hot out you can wade in the creek and cool off – there are little “beach” areas that allow you to easily get in and out. While this year is not the same as past years and you won’t get to gather and listen to music and share picnic tables while drinking beer… (memories!) you can still order carry-out from Sea Salt Eatery and pick it up from the window and take it to a spot for a picnic. Check out Sea Salt’s online ordering here: https://www.seasaltmpls.com/
Chillaxing (I know that’s not cool. I’m not cool)
#3 Rent a Pontoon!
Pricier, but a lot of fun if you have up to about 10 people that you want to spend the day with is to rent a pontoon boat and spend time on the water and the beaches of the St. Croix River. It is a MASSIVE river that borders MN, and it’s only about a 40 minute drive to get to Stillwater MN or Hudson to rent one. We have done this several summers in a row. You can take your food on board and just hang out and relax all day long. We love it as a way to bring the “water culture” of Minnesota to guests. It’s especially nice because it appeals to all ages – my senior citizen mom loves it as much as my daughter.
Even if you’re just visiting the city, this is a nice way to spend the day and there are day use bike rentals all over the city – our service is called Nice Ride https://www.niceridemn.com/ . It’s great because you never have to loop back to where you started, you can drop your bike at any station and grab a meal, or catch an Uber or a cab to where ever you want to go next. I love that this is an option now – for people that live here and want to use it for transportation or if you want to explore the Greenway, Grand Rounds bike trails around the lakes, or even make your way through the city in the bike lanes.
#5: Walker Art Center – Minneapolis Sculpture Garden
If you just want to wander and take in some art, the sculpture garden is a great place to go. They recently rehabbed the entire park and added a lot of new art that you can interact with. Then stop in the Walker or okay some mini golf nearby as well. And if you feel like exploring a little more, cross the bridge over the freeway and you’ll be in Loring Park – another little gem in Minneapolis.
I am so intrigued with this idea. I’m not very interested in anything military, but the idea that you can actually DRIVE A TANK?!?! That just sounds FUN!!
It’s on my bucket list. I really wish I had first hand experience with this one. I would love to hear from you if you do!
They have changed their offerings a little bit for this year, but hey. Still looks awesome. It’s located in Kasota MN, which is about an hour south west of the city, but it seems like an experience worth driving for!
I decided to do my latest neighborhood tour on Maple Grove, MN. It was like trying to eat an elephant in one bite. Maple Grove isn’t a “neighborhood” – it’s a city of over 60,000 people, so … I’ll call this an overview? Summary? Drive by? Basically, I was a little ambitious about what I thought I could include in one video.
Maple Grove Minnesota
In the video you can see the housing stock that is available – from a planned community surrounding Central Park including everything from apartments to townhouses and larger single family homes. I love the idea of having community space for a neighborhood to gather and enjoy, and this community space was really nice. A lake, a skating ribbon, playground, basketball and tennis courts, a farmers market every week – just so much to appreciate! The neighborhood is really close to 2 major shopping centers as well.
Maple Grove also has very easy access to freeways for commuting – it’s probably about 20-30 minutes to downtown Minneapolis during rush hour and far less when not. So you can get in and out of the city for Twins games or festivals relatively easily.
The other aspects that really appealed to me were access to giant lakes – big enough for motorized boats and water skiing, as well as Elm Creek Park Reserve. Elm Creek Park is part of the Three Rivers Park District – I was a fan of it before because we have found their trails to be really well marked, the camping uncrowded and clean, the parks are easy to access from the Twin Cities… but I had never been to this one. It is so nice! They have skiing and tubing in winter, disc golf, an off leash dog park, camping – in camper cabins if that’s your thing!, an enormous and amazing playground, a manmade swimming area, bike and roller blade paths, picnic areas… If I lived closer I would probably be there every week for one reason or another.
The homes that border the park are older and similar to what you see in many other suburbs of Minneapolis – ramblers or split levels.
Other things that stood out to me are the library – drop dead gorgeous! And HUGE. As well as the community center and all of the things that Maple Grove provides for its residents – from a pool to 2 hockey rinks and senior citizen services. If this is a suburb you’re considering at all – check out their web site and just start to get an idea of all the things that Maple Grove has. If the suburbs are your jam – I would say that Maple Grove should be near the top of the list.
I think this is one of the greatest misconceptions that people hold about buying a home – you do not need 20% down to buy a home!
I did a video on my channel that talks about why an FHA loan may be a great choice if you don’t have 20% to put down. The federal government has long encouraged home ownership and this is one of the ways that they help people get into homes of their own.
FHA all the way!
If you’re thinking about buying a home and you want to learn about the process you can download my free home buyers guide, it’s a link in the description below the video.
If you are in Minnesota and you’re interested in downpayment assistance contact me and I can help you find resources on that. Minnesota offers up to $15,000 in down payment assistance so it’s a great resource if you’re looking to get into a house and you don’t have that large down payment.
Here is why the FHA down payment requirement might make this the right loan for you if you don’t have a large amount of money to put down on a new home…
What is an FHA loan? Well, an FHA loan is simply a loan that is insured by the federal government and it enables people without a lot of money or with less than stellar credit to get into a home in a less expensive way and the price that you pay for that, “the catch”, is that you have to get something called PMI. Private Mortgage Insurance.
It’s required on all FHA loans.
You do not have to be a first-time homebuyer in order to get an FHA loan. The requirements of an FHA loan are as follows:
It’s billed as as little as three and a half percent down and, that’s true, but you should plan to have about six percent of the purchase price of the home available because you’ll have that three and a half percent that you’ll put as a down payment and then an additional two and a half three percent that would go toward closing costs.
Now in Minnesota often we get the sellers to pay about three percent in closing costs but they are not obligated to do that. So if you have that money available it just strengthens your ability to purchase that home.
Before you get an FHA loan:
First the lender will need to verify your income and they prefer to see two years employment, hopefully in the same field. They’re going to ask for pay stubs and verification of income.
The mortgage amount that you are able to borrow – the payment on that amount- needs to be less than thirty five percent of your income. And your total debt payments (car loan, credit card, student loan PLUS mortgage) must be less than 48 percent of your income.
In another video I talked about things that you could do to get ready to buy a home and one of those was paying down debt. Another thing you could do is consolidate debt so that you have one payment at a relatively easy interest rate and just make sure that you’re always, always on time with your payment.
Check out the home affordability calculator linked in the video. It’s going to tell you if you can qualify for an FHA loan based on what your payment’s are today. One of the other qualifications that they like to see is two lines of credit so if you have a student loan perhaps and a credit card or a car payment they’ll look at those two lines of credit and check out your payment history and make sure that you are a qualified risk.
Then there is your FICO score. Your FICO score is the credit score that lenders use to determine whether or not you’re credit worthy and you can get a hold of that in your annual free credit report where you can look out there and see what things are maybe pulling your credit score down, what things you could pay off, maybe things that you have paid and need to dispute. That is free – you can get it every year.
One of the last qualifications is how much you can borrow. In 2020 they have changed the amounts that you can borrow. In the Minneapolis metro area you can borrow, this is the actual loan amount, up to $382,950 on a single-family home.That’s a that’s a pretty large amount to take out as a mortgage and you’ll have a lot of options especially if you were to be in the northern part of the city or the suburbs that could buy you a lot.
Then there’s the even a better option, in my opinion, which is if you wanted to do a “home hack” which is this idea of buying a two family home and moving into one side of it and renting the other. You can borrow up to $490,250 and then they would account for that rent on the other side as part of your income and you can, depending on your situation if you get into the right one, be paying most or all of your mortgage through the rent on the other side of your house. It’s a good way to get your foot in the door and build some wealth!
Questions? Leave a comment or tap one of the icons below. 🙂
When I make neighborhood tour videos for my YouTube channel they always seem to get the most interest, and I stopped doing them when the snow and cold came around. Today I woke up and wondered why I was being such a wimp. I realized I didn’t want to shine a bad light on MN, and people hold so tightly to their convictions about the terrors of snow and cold – in fact a Washington Post reporter that moved to far NW MN from DC and wrote a book and an article about how happy he was and how much he actually enjoyed winter, was fairly viciously attacked in the comments when it posted on line.
So, I guess I was traumatized.
And then I said to myself – NO! I will not let the haters get me down – I will stand in solidarity with Christopher Ingraham and defend winter!
So here goes nothing! Don’t hurt me.
I took myself on a little driving tour of the first ring suburb of St. Louis Park. It sits directly west of the city and abuts the Linden Hills neighborhood of Minneapolis on one side and the City of Edina to the south. It is more affordable than the two of them, but because of the proximity to the city and the relatively more affordable prices, it has become a really hot area and things do not stay on the market for very long. The housing stock is pretty typical of SW Minneapolis in general – lots of 1950’s cape style bungalows, gradually giving way to 1960’s and 1970’s ramblers & split levels. I’m adding info about the home prices and the current market to the video….
It would be easy to picture the Brady Bunch living in SLP. I would not say that there is a lot of “historic charm”, but people have done some nice things with the ramblers (for the rest of the world – this is the MN term for a ranch style home). Lots are larger. There are sidewalks – and to me that is worth noting. I like walking without being hit by a car.
I admit to not spending an incredible amount of time in SLP other than driving through or shopping, so this was an enlightening trip for me as well. I was pretty pleased by some of what I found.
The Saint Louis Park rec center is not what I expected AT ALL! I thought it was a gym. It’s actually a park with an outdoor pool and water slides, and THREE full size ice rinks – 2 inside and a gorgeous outdoor rink as well. It’s a hockey paradise. Men with beards and big bags of equipment were pouring in for the open hockey that was happening.
SLP sits right on the the Cedar Lake Trail (temporarily closed because of light rail construction) and that connects to the Midtown Greenway and a whole network of other bike trails throughout the city and the suburbs.
At the “West End” you can find shops, restaurants (I tried “Lucky Cricket” Chinese restaurant and Tiki Bar today – Andrew Zimmern’s place. I was alone so I didn’t order a lot, but loved what I had – ShuMai burger). The insane Costco is over there, so if you’re feeling very Zen and can deal, or alternatively, if you’re feeling aggressive and want your anger to blend in, stop by! It’s mostly the parking lot that can change normally kind people into homicidal maniacs. Side note – there are 8 in the metro area, so if you go to the one in SLP consider yourself warned. There are other (more peaceful) choices. Just sayin’.
Tiki!
SLP has a very nice nature center on the far NW side of the city – I’ll come back in summer. The visitor’s center is being rebuilt and there are trails around a lake there. It’s called Westwood Nature Center and it reminds me a lot of the little oasis in Richfield – the Woodlake Nature Center.
Other outdoor activities… Theodore Wirth Park – an amazing and HUGE park with snow tubing! Groomed x-ctry ski trails! Biking trails – yes, even in winter! 12 sledding hills there alone! Snow boarding!
11 of the neighborhood parks have some sledding, night time lights, ice skating and a few have warming houses. I love this aspect of MN- it’s easy to be outside having fun year round.
Disc golf in winter at Brookview Golf Course! CURLING! I mean – that seems like a very Minnesota thing to do. Don’t ask me what it is.
Indoor – head to Punch Bowl Social for food and bowling. Or take the kids to Roller Garden – it’s old school fun.
That’s all I have for today and it’s way more than I thought I would have when I started out this morning. St. Louis Park surprised me. You may like it too!
Do you have questions? Leave a comment or tap one of the icons below.
If you have never purchased a home before the whole process may feel like a big mystery.
Stop by my YouTube Channel for more info on real estate & living in Minneapolis!
It’s something most people don’t do more than a few times in their lives and it’s the biggest purchase that you’ll likely make in your life. Well, good news! It’s not as complicated as you may think!
6-12 months from your purchase…
To answer the question “How long does it take to buy a house?” though – the answer is “it depends”! Don’t you love that? It makes me think about when I was a kid and wanted something – “Mom! Can we…?” “It depends…”. Ugh.
Well, one of the most important first steps is getting ready financially. If you have a good credit score (700+) you’ll likely not have a problem getting a mortgage. Many people have some work to do here first though. That means that you need to find out what your FICO score is (you are entitled to a free credit report annually at AnnualCreditReport.com). When you see your report there may be things on it that you want to dispute because you’ve paid them. You can also see what debts you owe – the goal is to get your debt to income ratio low. Lenders want the sum of your payments to creditors to be under 43% of your income for TOTAL payments – including your mortgage!
You’ll also want to make sure you have money for a down payment (minimum of 3.5% of the purchase price) and potential closing costs (2.5 – 3% of the purchase price) as well as cash on hand for things like home inspections and any deposits you may need for services, plus moving expenses.
If you need assistance in finding a loan officer that can help you find the best mortgage for you, ask a realtor! We work with them ALL THE TIME and typically know who is reliable, provides good service and has a nice array of loan products that they can offer you.
If you are a cash buyer, your timeline will include inspection and title search, but you can close FAR more quickly.
3 months from your purchase…
OK – that’s the hard part over! NOW you can start looking for a home. Because you have your finances in order, you know what you can afford. And your agent will know what you can afford as well! While it is a lot of fun to look at homes that are super fancy, if you can’t buy them… it’s a waste of time.
Finding the right home can be really fast or not as much. Some of that depends on you, and some is dependent on the market. As I type this, in Minneapolis, it is 110% a sellers market for anything under $350K. Homes are going quick, and inventory is low, so you may be outbid if you find one or there simply may not be a home available that meets your needs. However – you’ve done your homework, you have financing lined up and a down payment ready so when you find something you can submit a strong offer and push yourself to the top of the pile!
6-8 weeks from move in …
You find a home that you LOVE! You submit an offer that is attractive to the seller and you are prepared to close with! They ACCEPT!!
You will submit your earnest money (I have a video on that on my YouTube channel!) Typically, in Minnesota, that starts the clock on the inspection period. Frequently this is 10 days in which you have the opportunity to have a home inspector look at the house and give you an idea of what you are actually buying and if there are “material facts” that would inhibit your “quiet enjoyment” of the home. In other words – is there anything alarming that should be fixed before you can safely & comfortably inhabit the home?
Inspectors find things. If the items they find are things that you are willing to fix yourself, then ok. Or you can request the sellers fix it or rebate some of the purchase price so that it can be fixed in the future at no cost to you. If you cannot come to an agreement you can cancel the contract but you’ll be back to the house search stage … I need a flow chart in here. 🙂
30-45 days from move in …
Most lenders can get your loan underwritten and ready within 30 days. During this same time, a title search will be conducted and the sellers will complete any repairs agreed upon. If you have an FHA loan it can take an extra couple of days.
So! How long does it take to close on a home?It can be as little as a week or two for a cash buyer or as much as a year if you need to get your financial house in order. It’s all dependent on preparation on your part and being ready to make a clean offer.
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I’m a realtor in Minneapolis and there is so much to love about my job and and my city!
The most satisfying thing for me is helping someone find a home of their own. I love it because I know what a difference buying my first home – age 26, single, making very little money, with the help of down payment assistance – made in my life. It enabled me to “build wealth”, as is said in the biz. What that means is that my money went toward an asset and that asset appreciated and that let me translate that little house into something else. A choice I would not have had otherwise. And that cycle has repeated. I am a home ownership advocate!
I’m also a thrifty / mechanically minded person, so having the chance to learn how to take care of a home and depend on as few people as possible while I do so makes me happy. I love fixing things. I love improving my home. I love understanding how things work. It’s empowering to me.
I also love history and love old homes. Living in Minneapolis gives me the chance to indulge in some eye candy! We have housing stock that is from over 100 years old to brand new loft conversions in old flour mills on the river. My neighborhood is one of the “newer” ones and the houses have their charms even at the spring chicken age of 80.
Finally, since I am not native to Minneapolis, I love learning about living in Minneapolis and life in Minnesota and I hope to share some of my discoveries with you.
