Out of state investing in Minnesota

Investor · Missoula, MT · Member since 2022 · 6 posts · 2 votes

Does anyone have advice, experience and/or success with out of state investing in Minnesota? I live in Montana and geographically, it seems like one of the only options for investing that is within one flight away from Montana. If people have any experience investing there, are there pros and cons to the market? Living in Montana, it is very difficult getting any deals to pencil out here currently. I lived in the twin cities long ago and have some ties to the area and that is appealing as well. Any thoughts or advice is much appreciated?

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Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

Prices are quite a bit higher in Minnesota and landlord-tenant law is getting relatively unfriendly. Look up Milwaukee instead, YouTube in my bio.

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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Prices are quite a bit higher in Minnesota and landlord-tenant law is getting relatively unfriendly. Look up Milwaukee instead, YouTube in my bio.
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John HayesBusiness Member
Real Estate Agent · Whitefish, MT · Member since 2023 · 24 posts · 5 votes
2y
It’s possible but requires the right team on the ground. I’m also in Montana, but own and self-manage properties in Tennessee that are 2 flights away. I’d recommend connecting with other owners in the area (Facebook groups for great). Save contacts in your phone for everything, i.e. handyman, cleaners, specialty techs, etc. Use technology to your advantage. A solid tech stack will help keep you connected.
[email protected]850-375-4113
PureWest Christie's Real Estate
Website View Page
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Bradley Brucker
Member since 2024 · 5 posts · 0 votes
2y
Hunter,

Property prices are pretty high but there are plenty of deals to be found. If you have a decent contracting team and realtor, you could essentially invest at a distance.
I’m a contractor. When the time comes feel free to reach out. I’d be happy to get you an estimate.
Brad

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Bradley Brucker
Member since 2024 · 5 posts · 0 votes
2y
Quote from @Marcus Auerbach:

Prices are quite a bit higher in Minnesota and landlord-tenant law is getting relatively unfriendly. Look up Milwaukee instead, YouTube in my bio.
Hi from a fellow Milwaukee area professional!
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Jay Dacey
Member since 2024 · 2 posts · 0 votes
2y
We've worked with a handful of out of state investors. The rent control stuff mentioned is limited to Minneapolis & St Paul. The suburbs are still investor friendly and where most of our investors are gravitating towards.
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Tim SwierczekPro Member
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
2y
@Hunter Hessian In my opinion OOS investing is best when there is some reasonable scale. For example, it's hard to justify airfare for one duplex, but much easier for an 8-12 unit building and even better the more you get. That said you may test with some smaller units with plans to move bigger if you like the area.

Jay is correct about Minneapolis & St Paul's laws and attitudes toward landlords are tough. That being said Minneapolis has been very good to me as an investor and I'm still adding properties there. Minnesota does offer more appreciation than other Midwest markets and has traditionally been a balanced market for cash flow and appreciation, which I think is ideal. If you can handle the red tape and jump through the hoops, Minneapolis and St Paul have limited your competition and I see investors with a positive attitude growing in our market. Feel free to reach out if you want to meet on Zoom and talk about it.
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Hunter Hessian
OP
Investor · Missoula, MT · Member since 2022 · 6 posts · 2 votes
2y
Quote from @Jay Dacey:

We've worked with a handful of out of state investors. The rent control stuff mentioned is limited to Minneapolis & St Paul. The suburbs are still investor friendly and where most of our investors are gravitating towards.

Thank you Jay! This is great insight into the area
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Hunter Hessian
OP
Investor · Missoula, MT · Member since 2022 · 6 posts · 2 votes
2y
Quote from @John Hayes:

It’s possible but requires the right team on the ground. I’m also in Montana, but own and self-manage properties in Tennessee that are 2 flights away. I’d recommend connecting with other owners in the area (Facebook groups for great). Save contacts in your phone for everything, i.e. handyman, cleaners, specialty techs, etc. Use technology to your advantage. A solid tech stack will help keep you connected.
Thank you John. I appreciate your insight for out of state investing!

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Hunter Hessian
OP
Investor · Missoula, MT · Member since 2022 · 6 posts · 2 votes
2y
Quote from @Tim Swierczek:

@Hunter Hessian In my opinion OOS investing is best when there is some reasonable scale. For example, it's hard to justify airfare for one duplex, but much easier for an 8-12 unit building and even better the more you get. That said you may test with some smaller units with plans to move bigger if you like the area.

Jay is correct about Minneapolis & St Paul's laws and attitudes toward landlords are tough. That being said Minneapolis has been very good to me as an investor and I'm still adding properties there. Minnesota does offer more appreciation than other Midwest markets and has traditionally been a balanced market for cash flow and appreciation, which I think is ideal. If you can handle the red tape and jump through the hoops, Minneapolis and St Paul have limited your competition and I see investors with a positive attitude growing in our market. Feel free to reach out if you want to meet on Zoom and talk about it.

Thanks Tim, good to know that people are able to find success with the right type of deals in the area. It would be great to connect sometime and discuss the market.
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Tim SwierczekPro Member
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
2y
Quote from @Hunter Hessian:

Quote from @Tim Swierczek:

@Hunter Hessian In my opinion OOS investing is best when there is some reasonable scale. For example, it's hard to justify airfare for one duplex, but much easier for an 8-12 unit building and even better the more you get. That said you may test with some smaller units with plans to move bigger if you like the area.

Jay is correct about Minneapolis & St Paul's laws and attitudes toward landlords are tough. That being said Minneapolis has been very good to me as an investor and I'm still adding properties there. Minnesota does offer more appreciation than other Midwest markets and has traditionally been a balanced market for cash flow and appreciation, which I think is ideal. If you can handle the red tape and jump through the hoops, Minneapolis and St Paul have limited your competition and I see investors with a positive attitude growing in our market. Feel free to reach out if you want to meet on Zoom and talk about it.

Thanks Tim, good to know that people are able to find success with the right type of deals in the area. It would be great to connect sometime and discuss the market.

I'm open to connecting. Please PM me if you want to set up a Zoom or call.
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