Rental Property Investor · Minneapolis, MN · Member since 2016 · 9 posts · 0 votes
Hey Everyone,
Pretty new to real estate field and been searching for a duplex as an investment property for a year almost, had two deals getting cancelled at later stages. So just shifting my interest towards Townhomes specially near the Plymouth or Blaine area and rent them out.
Need opinions or suggestions. I have no issue with HOA , but I need all the valuable suggestions as to where to start , what to keep in mind. Is it a good time to invest in them etc.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
9y
Its about the numbers. Town homes in the suburbs usually cost more, but they rent for more. The HOA can kill the deal, but depending on the hoa you will have the lawn and snow done as well as outside repairs like the roof and siding.
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
9y
As @Todd Dexheimer mentioned it is all about the numbers. I may be the only person on here but I prefer single family investments over multi-family investments as long as the numbers work. We are only doing cash only deals so our prices have been very good and we have been able to meet or beat the returns from multi-family rentals. I always want to have a way to purchase if needed so the liquidity advantage of single family has been a driving force to stick with single family if needed. Also multi-family in my area has been over priced for a while.
You will want to look into the HOA documents and see what their rules are for renting before purchasing the property. A co-worker of mine got a "good deal" on a condo he was going to rent out then found out he couldn't rent it under his HOA. He needed the income to pay his new loan so had to violate the agreement and is just hoping he doesn't get caught.
Prices are high now, personally I think they are going to drop before they increase. I would make sure you have a good deal that will work from a cash flow standpoint and I would also make sure you are comfortable holding the property for a few years.