New member in Minnesota

12 Replies

Hello Bigger Pockets,

I am a new Investor getting ready to finish my first flip to put on the market or possibly rent. Looking for some advice on how to invest the profits with the potential market downturn/recession pending...

I have been following the forums, listening to the podcasts and have read a few of the investment books published by BP. However I would love to meet up with someone local investors to get a better feel for the market in my area and to start building my "funnel"

Any advice would be greatly appreciated!

With the potential pending market downturn, your best bet is to turn tail and buy lots of gold. kidding 

Where in mn are you?

I see a strong single family rental market for the foreseeable future. I’m buying rental housing.

I recommend you refi the house, and buy another if you can cash flow at least $250/mo after piti.

I live in Albertville, MN

I am open to single family, multi family or possibly self storage investing. 

I also have a contractor/ Father-in-law who does work North West of St. Cloud. However I am not familiar with the market in that area. 

Renting in rural area seems risky?

@Christopher Cline

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Wishing you the best!

@Christopher Cline

I know Grant Cardone just said to get out of real estate. We disagree the market is still solid, supply is low, builders are not out producing demand, rates are low, defaults are low.

While we know that things can change with the unemployment rate, and defaults may rise.

The twin cities market may level off for a bit, we don’t see a large fall.

I would hold on to your property and refinance at these great rates and reinvest. We have been hearing of this great fall for two years now. I think we are safe for the next year or two, maybe longer.

I don't believe there is going to be a market down turn or recession any time soon. The economy is the strongest it's been in decades and not showing any signs of a down turn that I can see. I am in Texas where the rental market is amazing, though. 

Originally posted by @Amber Gonion :

@Christopher Cline

I know Grant Cardone just said to get out of real estate. We disagree the market is still solid, supply is low, builders are not out producing demand, rates are low, defaults are low.

While we know that things can change with the unemployment rate, and defaults may rise.

The twin cities market may level off for a bit, we don’t see a large fall.

I would hold on to your property and refinance at these great rates and reinvest. We have been hearing of this great fall for two years now. I think we are safe for the next year or two, maybe longer.

 I have been hearing about the market crash coming since about 2014. Eventually those calling it will be right!

Oh, and come the the Northstar Real Estate Conference in September! There will be a lot of great people to meet

@Christopher Cline

Welcome to BP! Congrats on completed your first flip and good luck on the sale. I like the idea of refinancing and keeping it as a rental if you can cash flow or if you sell I would buy a value add small multlifamily to start. 2-6 units or so. 

I would say networking is one of the best things you can do in real estate and it will make you more successful. Get the momentum started now. I am an investor in Minneapolis and I also invest in Iowa and Nebraska. I am a realtor in MN as well.  What are your goals long term? Define those and then work backwards to set up a plan to get there. 

Kurt 

@Christopher Cline - Welcome to BP! I would agree with many on here, if possible refi then reinvest depending on how much you'll make on it. @Tim Swierczek is a great resource who will provide you honest feedback on the best use of your money. It may make sense to sell and buy a bigger property so you can use all of the funds. Keep in mind if you sell you're paying taxes on your profits. Refi-cash is generally tax free. You'll still have to pay taxes when you sell but you may want to keep that in mind as you look at your options.

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