MINNESOTA BILL ALERT: SF 365 & HF 685 will make it illegal for most investors to...

[Jamil Khan]

SF 365 HF 685 will make it illegal for most investors to buy an owner-occupied single family house, duplex, or triplex and rent them out. Contact your representatives!

[Jeff Schemmel]

@Jamil Khan 

SF365 & HF685 both directly state: family LLCs are excluded provided the following is true.  

(f) "Family limited liability company" means a limited liability company meeting the
following standards:

(1) it has no more than five members;

(2) all its members are natural persons or family trusts;

(3) all of its members who are natural persons or spouses of natural persons are related

Really hard for me to believe that "MOST investors" now won't be able to buy properties and turn them into rentals. Most investors I know are small LLCs. Also...preventing large investment firms or development firms from buying up perfectly good owner-occupiable SFHs and sMFHs is probably a good thing... We should be paving the way for more owner-occupants and knocking down that high barrier to entry to allow more people the opportunity to build wealth and own a home. It's a primary driver behind high sale & rent prices in MSP. It also probably helps sustain the quality/condition of properties in the metro if more owner-occupants buy them. People who live in their SFH, duplex, etc take much better care of the property and are more respectful and mindful of tenants in my experience.