South St Paul, Minnesota

8 Replies

Hey guys! Hope everyone is doing well. My agent mentioned that a fourplex is for sale in South St Paul but 2 of the units are currently vacant. Is it a decent area for rentals? I have invested in the suburbs but never in St Paul. Also is the city investor friendly? Are investors in the area having a hard time filling empty units?

@Toby Khan I think you'll find St Paul is a generally decent and stable place to invest. Appreciation in Ramsey county is more modest than its neighbor to the west, but still alright. Most of St Paul is blue collar and consistent. Definitely check trulia crime map for the specifics of that area. Obviously check the condition of the 4 plex and the type of unit, studio or 1br will rent far less than 2br or 3br. Make sure it hits at least 1.2-1.3 rent/price ratio to cash flow decently. Good luck.

@Noah Chappell -thank you for the insight. As long as the area is good then I’ll take deep dive into the 4plex condition but sounds like all current owner completed all required repairs after inspection when they bought it few years ago as well as a recent TISH. 

@Toby Khan Is this off market or the one on the mls? If it's on the mls, aren't the 2 units vacant because the owner occupied those 2? I didn't look into it further, but also note that it is zoned for 3 units from what I understand. I did not do much due diligence. You'll want to do far more than me.

@Corey Hawkinson yep it’s the one on mls. It is zoned as 3 units but it has its own separate studio. I don’t know much so far but agent mentioned 2 units has paying tenants, and 2 units vacant. I assume he counted studio as 1 unit. Yep I’ll have to do more research. If city has it as 3 unit not sure if 4th unit can be rented out.

I've been in that one, overpriced in my opinion. It's smart to vacate a single unit before listing, but 2 vacant units is certainly not the norm. Spend a little more and offer on 71 Isabell for 470k, 4plex in a great west-side neighborhood.

As for SSP in general, I've seen some great 6 bed duplexes in the 300k ballpark, 60s-70s builds. If you can find one of those in a decent area I'd say buy it. 

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