Minneapolis, Ohio, Indinapolis ???

7 Replies

Hello to all from BP and thanks for all of the info and knowledge!! 

I am a soon to be new investor and am looking to purchase my 1st mfr .

I am from Los Angeles and want to purchase mfr in the Twin Cities (i have family there) but have had 2nd thoughts after reading here on BP as far as price, cash flow of homes , etc.. So i am now thinking Ohio, Indianapolis, etc.

My main reason for thinking Ohio or any other place is 1st before Msp is i can get my feet wet with cheaper purchase price and better cash flow

My goal is buy, hold and cash flow.

Im looking for B/ C+ areas. Im thinking 50- 100k mfr give or take with the different variables

I do not want any turn key mfr with new cab, floors, windows as im a custom finish carpenter here in L.A by trade. So dont want to pay for work i can do. Dont want to get into full gutting rehabs neither.

I work custom multi million dollars homes with 20yrs exp. Also worked for some home flipping investors during the recession that paid me tremedously to leave my job at the time. Although i have not "owned" a rental, mfr i am not totally "wet behind the ears" when it comes to homes.  The buildimg part anyway lol. 

Maybe ive rambled on to much (sorry) but im basically looking for..

Your thoughts on investing in Ohio, Indianapois, etc 1st before MSP.

In the state that u suggest, which cities ? I want to be in B/C+ areas. Not in the "hood" where its not safe at night.

And any other thoughts, suggestions you have are very much welcome!!!

P.s.. I do have 20% down for the property plus cash for any repairs that are needed if any.

Thanks in advance for the help!!!!

Updated 4 months ago

Minneapolis,Ohio,Indianapolis for 1st Mfr?

I stick to investing where I live or have some sort of advantage.

For me that’s Minneapolis because I live here, Louisville because I’m from there or south Texas because I have a lot of family and friends there and travel there a lot!

Originally posted by @Jordan Moorhead :

I stick to investing where I live or have some sort of advantage.

For me that’s Minneapolis because I live here, Louisville because I’m from there or south Texas because I have a lot of family and friends there and travel there a lot!

 Yes, i would do the same but its to expensive here in L.A area.

I do and will eventually invest in St.Paul area as i do have family there and visit a few times a yr.

From what i see online in terms of price and cash flow it seems to me i could save approx 75k+ buying in Cleveland area. Less out of pocket for 1st time buying and learning the "owner side" of the business. Ive managed apts before. This would be my 1st ever poperty ever owned at all.

$50-100k purchase will not buy anything in Minneapolis area and will only get you a C-/D area in Indianapolis. You may find some C+ class in Northern Ohio, but likely will need some work. 

Originally posted by @Todd Dexheimer :

$50-100k purchase will not buy anything in Minneapolis area and will only get you a C-/D area in Indianapolis. You may find some C+ class in Northern Ohio, but likely will need some work. 

 Thanks @Todd Dexheimer

Yes i am aware  that i will not get anything for that price in The Twin Cities. I can put 20% down on 1m unit if i chose to but was thinking to get my feet wet on a smaller scale for my 1st purchase.

Me being a finish carpenter for 20yrs i want to buy a home that needs some work but not need to be fully gutted.

I will be investing in the Twin Cites eventually , is just a matter of when

Thanks Todd !!

@Johnny Pena if you have $100,000+ in cash I would suggest leveraging your money to buy something that is going to be in a decent neighborhood. Also buying out of state is much easier if you can get more units.  

@Todd Dexheimer Yes sir i do have that amount of cash. I am just hesitant on diving in with that amout of cash . If somethimg were to go wrong i can swallow 20/40/50k but 100k would be a hard pill to swallow. This is my thinking as to why i wanted to start "small".

Can you please elaborate on the leveraging and buying multiple units.

Thanks so much Todd !!

Originally posted by @Todd Dexheimer :

@Johnny Pena if you have $100,000+ in cash I would suggest leveraging your money to buy something that is going to be in a decent neighborhood. Also buying out of state is much easier if you can get more units.  

 Sorry, i dont know how to get ur name to highlight so it sends notice so i hit the "quote" hoping it does send a notice to you

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