Updated over 6 years ago on . Most recent reply
Minneapolis Multifamily Market?
Hi everyone, I wanted to ask the forums if anyone has any thoughts about househacking in the Minneapolis area? My longtime girlfriend and I are looking to buy a small multifamily in the area for somewhere around 200k. I am currently a loan officer and she is a leasing agent and our salaries combined come out to be right around 100k/year. I grew up on a farm and have done some construction myself and I am hoping to find a place that's a bit run down where I can come in and change the flooring, cabinets, paint, landscape, ect. and get myself some sweat equity. It seems most of the multifamilies in my price range are in St. Paul or North Minneapolis. I was wondering what those neighborhoods are like as I am planning to move to Minneapolis soon but am not overly familiar with the city. If anyone has any helpful tips or advice I greatly appreciate it, thanks in advance!
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I've lived in North Minneapolis for 14 years and I have one rental property there. As Armin mentioned, you will definitely want to pay close attention to the crime maps and shot spotter maps. Duplexes under 200 will need significant repairs and/or be in high crime areas. If you can get your budget up to 225 or 250 you will be able to get something livable but still needing repairs in a slightly better high crime area. In those slightly better areas know that you will be competing against investors that are buying with cash and no contingencies. Do most of your underwriting ahead of time so you can close within 30 days. If you want to reach out directly I can tell you a lot more about how I evaluate properties in North Mpls and share some offer strategies that have worked for me.