🏡 How to Get Started in Real Estate Investing in Minnesota (Beginner’s Guide)

Thinking about diving into real estate investing but not sure where to start? Whether you’ve been binge-watching HGTV or following local market trends, Minnesota is full of opportunity — if you know how to spot it.

In this guide, we’re sharing beginner-friendly tips from two Minnesota-based real estate investors who’ve done it all: land deals, flips, trailer homes, rentals, and Airbnbs. Whether you’re just starting or ready to scale, this is your step-by-step blueprint.

🎯 Step 1: Know Your Investment Strategy

Before you buy anything, get clear on your goal. Each real estate investing strategy comes with its own risks, timelines, and returns. Here are a few common ones:

  • Long-Term Rental (Buy & Hold): Great for building steady monthly cash flow and long-term wealth.

  • Fix & Flip: High risk, high reward. Ideal if you have capital, a great contractor, and market knowledge.

  • Airbnb/Vacation Rental: Popular in Minnesota lake country and tourist areas — just be aware of local short-term rental laws.

  • Trailer Flips or Land Investing: Low entry cost and high ROI potential, but more niche. Great for creative investors!

📍 Step 2: Pick the Right Area

Minnesota has no shortage of diverse markets. Here are a few hot spots to consider:

  • Twin Cities Metro (Minneapolis–St. Paul): Competitive, but strong appreciation and rental demand.

  • Duluth & North Shore: Growing interest in vacation rentals and scenic investment properties.

  • Rochester & Southern MN: Affordable entry points and steady job growth driven by healthcare.

  • Suburbs like Blaine, Woodbury, and Lakeville: Great for single-family rentals and fix & flips.

Pro Tip: Look for areas with job growth, good schools, low vacancy rates, and future development plans.

🔍 Step 3: Analyze the Numbers (Not Just the House)

Here’s where most beginners go wrong — falling in love with the property and forgetting the math.

Ask yourself:

  • What’s the purchase price vs the ARV (After Repair Value)?

  • What are projected rents vs monthly expenses?

  • Are there HOA fees, property taxes, or licensing costs?

  • Will you cash flow from Day 1 or rely on appreciation?

Use free online calculators or connect with a local agent (like us!) to run the numbers based on real data.

🚧 Step 4: Avoid These Costly Mistakes

  • 💸 Underestimating repairs (Always get multiple contractor bids!)

  • 🏦 Not lining up financing first

  • 👀 Skipping due diligence or local zoning rules

  • 🕒 Taking on too much, too fast

✅ Step 5: Build Your Team Early

You don’t need to know everything — but you do need the right people. Here’s who you want on speed dial:

  • Realtor with investor experience

  • Lender or hard money broker

  • Contractor/handyman

  • CPA or accountant familiar with real estate investing

  • Property manager (if not self-managing)

🎬 Final Thoughts

Getting started in real estate investing in Minnesota doesn’t require a ton of money — just the right mindset, research, and a solid team behind you. With diverse opportunities across urban, suburban, and rural markets, Minnesota continues to be a strong state for long-term real estate wealth.


🧠 Want to Start Your Investing Journey?

📧 Let’s connect: https://leonhardtteam.com/moving-in-minnesota-or-wisconsin
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💬 Drop a comment below — what strategy are you most curious about?

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