Minnesota is one of the few states where flip margins went up in 2026. ATTOM counted 823 Minnesota flips in Q1 2026, with a typical gross profit of $70,000 and a 27.5% gross ROI, up from 25.5% a year earlier, while the national margin slid to 21.5% by Q2. The catch is the paperwork and the premiums: Minneapolis and St. Paul make you get a city inspection before you list, the state wants a license from repeat flippers, and insurance is climbing fast.
Here's what the Minnesota numbers look like in 2026 and how to use them.
Minnesota House Flipping in 2026 at a Glance
- National flip margin: 21.5% typical gross ROI and $60,526 typical gross profit in Q2 2026, down from 27.6% and $71,000 a year earlier (ATTOM)
- Minnesota flips: 823 flips in Q1 2026, a 6.8% flip rate, with $70,000 typical gross profit and a 27.5% gross ROI (ATTOM)
- Statewide median price: $375,000 in July 2026, up 2.7% year over year (Minnesota Realtors)
- Inventory: 3.5 months of supply statewide in July, and inventory hit a seven-year high in August as listings outpaced sales (Minnesota Realtors, FOX 9)
- Days on market: a median of 33 days in June, unchanged from a year earlier (Agent Pronto)
- Property tax: about a 1.00% effective rate on owner-occupied homes (Tax Foundation), plus a 0.33% state deed tax on sales (Minnesota Department of Revenue)
Why Minnesota Margins Held Up
Minnesota flips don't rely on hot appreciation. Prices rose low single digits, which is a cushion, not a windfall. What helps is the housing stock: older Twin Cities and outstate homes that need real work, bought at prices where a renovation moves the value. ATTOM's national data shows homes bought for $100,000 to $200,000 produced the strongest margins, about 32%, and a lot of Minnesota's flip inventory sits right in that range.
Two things are working against you:
Remember that ATTOM's gross ROI is before rehab, financing and selling costs. A 27.5% gross return can net out to a modest profit once a full renovation is in.
Where to Flip in Minnesota: Metro by Metro
Figures come from different sources and periods, so treat them as a starting point and pull comps for the specific block.
Minneapolis
Minneapolis had a city median of $375,000 in July, up 5.9%, with 3.1 months of supply, the strongest price growth of the core cities. Across the wider metro, Redfin's first-half median was $390,313, essentially flat, with 32.5 days on market and active listings up 7.2%. Older city housing gives you real value-add room. Budget for the Truth in Sale of Housing evaluation and any required repairs before you list.
St. Paul
St. Paul is the cheaper half of the Twin Cities, with a $300,000 median in July, down 0.5%, but only 2.6 months of supply. Tight supply and lower prices make it a good fit for modest rehabs. Don't count on appreciation; your profit has to come from the buy and the work.
Rochester
Rochester is the strongest outstate market. Redfin put its first-half 2026 median at $342,672, up 4.7%, with 2.8 months of supply and about 34 days on market. Mayo Clinic's employment base keeps buyer demand steady, which makes your exit more predictable than in most small metros.
St. Cloud and Duluth
St. Cloud is cheaper and slower, with a Redfin Q1 2026 median of $290,150, up 1.4%. Duluth is cheaper still, at about $248,309 in April, down 0.7%. Low entry prices help, but flat values and a short building season mean you need a fast, tightly scoped rehab.
Live Minnesota Deals on Frontflip
Frontflip tracks auction and Opendoor homes in Minnesota, updated daily. Pick a market to see each deal on the map with its price and an instant investment report:
What a Minnesota Flip Costs in 2026
- Financing: Hard money generally runs about 9.5% to 13% interest plus 1.5 to 3 points. Your resale buyer faces a 30-year mortgage around 6.7%.
- Property taxes: About 1.00% statewide, but metro counties run higher; one estimate puts Hennepin and Ramsey near 1.26% to 1.27%. A flip won't carry a homestead classification, so check the actual bill.
- Deed and mortgage taxes: The state deed tax is 0.33% of the sale price, or 0.34% in Hennepin and Ramsey counties, about $1,020 on a $300,000 sale in the metro. If you borrow, the mortgage registry tax is 0.23% of the loan.
- Insurance: Minnesota's average premium hit $3,987 in June 2026, after a 13% rise in six months, with hail a big driver. Get a vacant or builder's risk quote before you commit, and check the roof first.
- Selling costs: Add agent commissions, closing costs and the city inspection fee where Truth in Sale of Housing applies.
Run your numbers with Frontflip's Minnesota rehab cost estimator and Minnesota seller net sheet before you make an offer.
Minnesota Rules Flippers Should Know
2026 Outlook for Flipping Houses in Minnesota
Minnesota should stay one of the steadier flipping states through the end of 2026. Prices are rising slowly, homes sell in about a month, and margins were above the national typical in the latest state data. Expect a bit more competition for your resale as inventory builds, and higher insurance and the occasional city repair order to keep pressure on the net. The Twin Cities and Rochester offer the deepest buyer pools; St. Cloud and Duluth work only on cheap buys with tight scopes.
Key Takeaways
- Minnesota flips returned a 27.5% gross ROI and about $70,000 gross profit in Q1 2026, above the national typical margin.
- Prices are up modestly and inventory is at a seven-year high for August, so price your exit to today's comps.
- Insurance averages nearly $4,000 a year and rose 13% in six months; quote it early.
- Minneapolis, St. Paul and several suburbs require a Truth in Sale of Housing evaluation before listing.
- More than one improved property in 24 months puts you in contractor licensing territory.
Frequently Asked Questions
Is flipping houses in Minnesota profitable in 2026?
Yes, for disciplined buyers. Minnesota's typical flip made about $70,000 gross and a 27.5% gross ROI in Q1 2026, better than the national typical, though rehab, holding and selling costs come out of that.
What is the best city to flip houses in Minnesota?
Minneapolis has the most value-add housing and the strongest recent price growth among the core cities. Rochester is the best outstate option thanks to steady demand and tight supply.
Do you need a license to flip houses in Minnesota?
Not for a single flip you own, but Minnesota presumes you're building for speculation if you improve more than one property in 24 months, which requires a residential contractor or remodeler license unless a licensed contractor does the work.
How much does it cost to flip a house in Minnesota?
Beyond the purchase and rehab, plan for hard money at roughly 9.5% to 13% plus points, about 1% to 1.3% a year in property taxes, insurance near $4,000 a year, a 0.33% deed tax, and any Truth in Sale of Housing repairs.
Looking for last year's numbers? See Flipping Houses in Minnesota: Market Stats 2025.
Got a Minneapolis fixer in mind? Pull up the address in Frontflip for flip scenarios, rental projections and comps, free on iOS.