Minnesota situation guide · Updated November 2026

Wholesaling Condemned Houses in Minnesota

Wholesaling condemned houses in Minnesota means contracting on a property the city has declared unsafe to occupy and assigning it to a buyer who can fix or remove it. Duluth has older homes on steep lots, and years of weather can turn a neglected house into a hazard. These deals are high risk and high reward, and the first step is always learning exactly what the order says.

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The short answer

Can you wholesale a condemned house in Minnesota?

Yes. You can assign a contract on a condemned house, but the buyer must be able to meet the city order. Read the order and ask the city before you sign.

A condemnation or hazardous building order can mean the city bars occupancy until problems are fixed, or it can set a path toward demolition. The wording matters, so get the actual order and the file. Our condemned house guide and certificate of occupancy guide explain the basics.

Details vary by city, and we have not confirmed the state hazardous building rules, so ask the city and an attorney. Price both paths: repair and demolition. Run both through the ARV calculator and MAO calculator.

Condemned Houses in Minnesota at a glance

Wholesaling statute	We found none in Minnesota; check current text
Condemnation	Handled by the city; process differs by city
Insurance	Vacant property cover can be hard to get
Licensing risk	Five or more principal sales in 12 months can look like a pattern
State deed tax	About 0.33% of net consideration above $3,000
Key cost	Repair or demolition, plus any city charges

The opportunity

Why condemned houses work in Duluth

Duluth’s housing is older than most of the state’s, and Lake Superior weather is hard on roofs, chimneys and foundations. Many houses on the hillside sit vacant for years. Absentee owners and estates often have no money to fix a condemned house, and the city may be eager to see it fixed or gone. Builders and rehab investors who know Duluth can see value in a lot, a view or a solid frame that others miss. A house near the lake or on a street with newer homes may be worth saving even when it looks hopeless. Walk the block before you decide, and talk to neighbors about what the house has been like.

Owners without options

Many cannot afford the repair. See our motivated sellers guide.

City support

Cities often prefer a sale to a buyer who will act over a long vacancy. See zombie properties.

Land value

Even when a house cannot be saved, the lot may have value. Check highest and best use.

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Lead sources

Where to find condemned house leads in Duluth

City records. Public lists of vacant or condemned buildings can point to owners.
Driving for dollars. Look for boarded windows, posted notices and fenced yards. Use our driving guide.
Estates and heirs. Families often inherit houses they cannot fix. See probate leads.
Tax delinquent owners. Owners behind on taxes may sell. Our tax delinquent lists guide helps.
Absentee owners. Use skip tracing to reach owners who live away.

Your exit

Who buys condemned houses in Minnesota

Experienced rehab investors, builders and local contractors buy these. They look at the structure, the lot, the order and how long the city will give them to act.

Be clear that the house cannot be occupied. Share the order, photos and any city timeline. Our cash buyer guide and vacant property insurance guide help buyers plan.

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Step by step

How to start wholesaling condemned houses in Minnesota

Get the order. Ask the owner and the city for the notice and any inspection report.
Inspect the structure. Look at roof, foundation, wiring and any fire or water damage.
Price two paths. Estimate repair and demolition using our repair cost guide.
Run the numbers. Use the ARV calculator and MAO calculator.
Sign the contract. Use offer language with a long inspection window.
Disclose the order. Give your buyer the notice and every fact you know in writing.
Close with title. Close through an investor-friendly title company.

Your checklist for wholesaling Condemned Houses in Minnesota

Read the condemnation order in full.
Ask the city what it will accept: repair, demolition or a sale.
Price repair and demolition separately.
Give your buyer the order and every known fact in writing.
Have a Minnesota attorney review your assignment form.

A Minnesota example: a Duluth house with a city order to vacate

Value after repair	$240,000
Repairs and permits	$85,000
Demolition and clean lot	$30,000
Purchase contract price	$62,000
Assignment fee	$8,000
Buyer total price	$70,000

A family in Duluth’s Lincoln Park area inherited a two-story house after a roof leak and a failed furnace led the city to bar occupancy. The heirs lived out of state and wanted it gone.

You paid $62,000 under contract, with a 30-day inspection window, after a contractor priced $85,000 to repair it or about $30,000 to take it down.

A local builder took the contract for an $8,000 fee. He chose repair because the frame was solid, and the city allowed a reinspection plan. Title closed in five weeks.

Minnesota rules to know

City orders, disclosure and licensing in Minnesota

Condemnation and hazardous building orders are mostly handled by the city, and details differ across Minnesota. We have not confirmed the state hazardous building rules, so ask the city and a Minnesota attorney before you commit. Residential sellers are generally asked to share known material facts under sections starting at 513.52.

Selling often is its own question. Minnesota’s broker definition presumes a pattern of sales after five principal deals in a year, with an exception when a licensed broker represents you, so count carefully and ask Commerce or an attorney. A state deed tax of roughly 0.33% applies above $3,000 of value. Our legality guide explains more. Because a condemned house carries real safety risk, put every known hazard in writing and let the buyer bring their own inspector, engineer or contractor.

Learn it with a mentor

Judge risky deals wisely

Condemned deals leave little room for error. Mentorship students send us the order and the estimates, and we help them decide whether to bid, walk away or bring a partner.

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FAQ

Condemned Houses in Minnesota: common questions

Is wholesaling condemned houses in Minnesota legal?

Generally yes. We found no wholesaling statute, but disclosure and licensing rules can apply. Check current text. You can assign a contract on a condemned house if the buyer can meet the city order, so read the order and ask the city before you sign.

Can I buy a condemned house?

Generally yes. The buyer takes it subject to the city order, so read it carefully. A condemnation or hazardous building order can bar occupancy until problems are fixed or set a path toward demolition, so get the actual order and file.

Will the city demolish the house?

It depends on the city and the order. Ask the city what options exist. The wording matters, and details vary by city, so get the actual order and the file before you tell the owner or buyer what the city will allow.

Can I get insurance on a condemned house?

It can be hard. Ask an insurance agent about vacant or builder coverage. Because a condemned house may sit unoccupied for a long stretch, price the coverage into your buyer’s numbers and mention it to the buyer early in the deal.

Who closes the deal?

A title company usually closes. Ask them to check for city charges. Ask early whether unpaid charges tied to the order could follow the property, and tell your buyer what the title company finds before the closing date ever arrives.