Brand Spankin' New to Real Estate - Buying First MultiUnit by 18'

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Brand Spankin' New to Real Estate - Buying First MultiUnit by 18'

Nicholas Johnson
Minneapolis, MN · Member since 2017 · 26 posts · 15 votes

Hey Guys! Nick from MN here.

So excited to be joining this amazing community of entrepreneurs and investors. Bigger Pockets has been a GOLD MINE of information and I'm sucking it up as much as I can - through podcasts, books, etc. Here's some background on where I'm at in the purchasing process -- any advice you guys have is more than welcome!

My plan is to start with a "house hack" and get into a multi-unit property in the Minneapolis/St.Paul area. I've been looking heavily in a few areas and really trying to hone in on a market to target. I've heard about the BRRRR method and that is in the back of my mind as kind of the jumping off point from the duplex. First things first though -- get the multi-unit property purchased on an FHA through a local bank.

I've got little cash on hand but am putting away about $1500/mo. now, with 5k already in the bank (emergency fund). I'd like to leave that untouched. I'd prefer to keep the purchase under 200K but willing to go to 250K and figure it out. I'm not really looking to rehab this first duplex but I'm pretty handy and could see myself getting into some Single family homes from there.

Actions I've been taking: Searching Zillow / Realtor.com to find something that would cash flow when I move out, and at least break even or cash flow while I live in it. Driving around and looking at a few of the listings I find (no real hits yet -- couple of "wow, no wonder it hasn't sold yet" moments). And I plan to go for a drive this Saturday to get more familiar with a potential area to focus in on.

One thing I've been doing to find a good area is going on a couple city's economic development websites, and they have their city plan in there so you can read about what areas they are looking to cultivate and which areas maybe are less attractive to buyers. It was super helpful. Anyway enough with all my ranting. Want to say thanks to Bigger Pockets for putting this site together. I'm super grateful to have found the podcast/website and look forward to your suggestions / meeting you!

Nick

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  • John Woodrich
    Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Congrats on getting your plan going.  I personally don't invest currently in MPLS as I don't have the time to sort out all the good and bad pockets.  I would monitor the MPLS shot spotter map to find places to avoid:

    http://www.ci.minneapolis.mn.us/police/statistics/...

    The fact that they have to update that map weekly tells you something about those areas....

    There are many people who invest in multi-family in MPLS to help you.  Your approach is consistent with the approach many new investors are taking in that area.

    0Reply
  • Nicholas Johnson
    OP
    Minneapolis, MN · Member since 2017 · 26 posts · 15 votes
    9y

    Thanks for the tip on the shotspotter John. Yeah, I've found S. and W. Minneapolis to be a bit rough around the edges - NE seems to be a soft spot for less crime. Do you keep more to the outskirts or suburbs then? Thanks for the input my friend. 

    Nick

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  • Eric Beise
    Real Estate Agent · Minneapolis, MN · Member since 2014 · 40 posts · 30 votes
    9y

    Hey Nick! 

    I love the enthusiasm and you have a lot of the right ideas. I did something very similar a few years ago and it has changed my entire career path. 

    If you want help navigating which areas are work for your strategy I would be happy to chat with you and help you in any way I can.  I do a lot of work in Minneapolis and areas of STP. Feel free to reach out!

    0Reply
  • Nicholas Johnson
    OP
    Minneapolis, MN · Member since 2017 · 26 posts · 15 votes
    9y

    Thanks for the encouragement Eric. This is definitely a journey I'm excited to be on. I'd be open to hearing more about your experiences -- did you do a house hack too? I'd be curious to hear more about that!

    0Reply
  • Kyle Lush
    Willmar, MN · Member since 2017 · 15 posts · 5 votes
    9y

    Welcome Nicholas! I'm also in MN and brand new to REI and just looking to get started. BP is an awesome place with great tools and resources and awesome people. House hacking is a great way to get started. I wish I had started thinking about it seriously earlier as I would have probably purchased a small multi-family instead of the single family I'm currently living in!

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  • Nicholas Johnson
    OP
    Minneapolis, MN · Member since 2017 · 26 posts · 15 votes
    9y

    I hear ya Kyle - yeah I am super grateful for BP. From what I've been seeing single family residencies can also be a great way to get started! Gotta love it. Thanks for reaching out - good to meet other locals on MPLS area. Cheers.

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