Minneapolis Multifamily investing
I’m concerned about Minneapolis’s rent increase restrictions going into effect soon. I’m a new MF investor, trying to pick an area ( or areas) within 30-60 minutes from my St Louis Park home, to buy apartments 50 doors or less. Does anyone who knows this area, have advice for me? Probably b or c properties, in blue collar areas.
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Before you sound the alarm bells, the "rent stabilization" study isn't a draconian proposal like capping the amount of rent or making it so increases can't be put through. They are talking 5-7% increase plus inflation. If you are raising more than that, you probably have a serious issue. It doesn't pertain to units you turn over but rather continually running tenants. I don't think I've raised over that much ever as my rents and pretty much everyone else I know, has competitive rents. The impetus is to prevent the use of rent increases to empty a building to be moved from a basic rental to a full reno where they upscale, double the rent to do a full renovation.