In the Twin Cities’ western suburbs, flipping homes remains a proven strategy for building long-term wealth. Whether you’re an experienced investor or a homeowner with vision, understanding your options is key. Here, we explore two popular approaches: the traditional fix-and-flip and the more hands-on live-in flip.
Fix-and-Flip: Fast and Focused
The fix-and-flip strategy involves purchasing a property below market value, renovating quickly, and reselling for profit. Investors favor this approach for its speed and income potential.
In the Twin Cities, especially suburbs like Maple Grove and Eden Prairie, flippers have seen profits of around 24%, according to recent local reports. With homes moving quickly and inventory tight, demand often outpaces supply—giving flippers a prime opportunity.
However, it’s not without risks. Costs can escalate quickly, and timelines are tight. Success often depends on a strong team of contractors and a deep understanding of the local market.
Live-In Flip: Renovate at Your Own Pace
The live-in flip offers a more personal approach. In this strategy, the owner moves into the home and renovates it over time before eventually listing it. This method provides unique tax advantages—like avoiding capital gains on the sale of a primary residence—and more control over design decisions.
A notable example in Edina showcased a home purchased for $1.65 million, renovated extensively with high-end finishes, and later listed for $2.95 million. By living through the renovation, the owners were able to make thoughtful design choices that appealed directly to future buyers.
Western Suburbs Market Insights
The western suburbs continue to attract buyers drawn to excellent schools, spacious lots, and modern amenities. Maple Grove leads the region in new building permits, signaling ongoing growth. Meanwhile, established areas like Edina and Plymouth offer strong resale potential.
With home prices in these areas rising by 5–6% annually, opportunities for appreciation add another layer of value to flips done right.
Renovations That Deliver High ROI
If you’re planning a flip—whether living in or not—focus on improvements with the best return on investment:
- Curb Appeal: New garage doors, updated entryways, and fresh exterior paint offer strong first impressions.
- Kitchens: Mid-range kitchen updates (like new cabinets and countertops) recoup about 80% of their cost.
- Bathrooms: Updating fixtures and finishes offers a good return, especially in older homes.
- Flooring & Paint: Clean, neutral updates throughout create cohesion and attract a broader buyer base.
- Energy Efficiency: New windows and doors enhance comfort and reduce long-term utility costs.
Which Strategy Is Right for You?
If you’re seeking quicker returns and have the resources to manage a team, a traditional fix-and-flip may suit your goals. If you prefer to spread costs over time, benefit from tax savings, and take a more hands-on approach, the live-in flip offers both lifestyle and financial gains.
Final Thoughts
Whether flipping for speed or value, success in the western suburbs starts with a smart strategy, a clear budget, and an understanding of what local buyers want. With demand high and well-renovated homes selling fast, now is a strong time to explore how flipping could work for you.
If you’re ready to start your flip—or looking for the perfect property to begin—our team is here to guide you through every step.