Minneapolis expenses

11 Replies

Hello Everyone:

As an out of state investor in Minneapolis, I had a few questions about what certain things cost in the city of Minneapolis. I've invested in a condo, and I'm looking to branch out into MFR's and I'm curious as to what two specific things would cost in the city of Minneapolis. How much does trash collection cost in the city of Minneapolis? What about water and sewer? I realize that this might be more subjective than trash, as water and sewer is more dependent on usage (number of units, etc). These seem to be the two areas that I'm most unsure about. I appreciate any insight into these cost categories.

Hey @David Barnett , the city is actually the only trash collector in Mpls, so the costs are cut and dry (for better or worse). This link will give you costs for trash and recycling and also give you costs of water/sewage, which, as you mentioned, will only help you estimate due to it being a usage cost, but it's better than nothing. 

http://www.minneapolismn.gov/solid-waste/customer/solid-waste_billing

@Joseph Lee Thanks for linking me to the garbage/waste for the city of Minneapolis. That helps a lot at least on one of the variables. Water/sewer is much harder to estimate, based on the consumption. It is definitely something I'll budget based on Bruce's recommendation and fine tune it as I get a bit more experience with MFR's.

@David Barnett - Depending on what size property you are looking to lock down your trash expenses will vary. You can have a once per-week trash pickup on a 3 yard container for $200-250 per month. This would be more so for a 10 unit+/- property.

Water/sewer expenses, as you said, will vary. However, a good industry benchmark from Minneapolis/Saint Paul would be $30-35 per unit per month. Again, this is assuming a small to mid-size multifamily property.

@Marcus Curtis Thank you very much for the information.  At this point, I'm looking at duplexes, triplexes or quadplexes.  I'm not at the level of 10 unit + properties, however, not ruling it out in the future.

The water/sewer is very helpful.  Thanks again for your response/insight into the MSP market.

I own 2 duplexes in Minneapolis and  I think a reasonable conservative benchmark is about $25/person on water/sewer unless you have high efficiency shower/toilet etc...    Good luck on breaking into the MSP market,  it's highly competitive right now,  but the returns can be very good.  

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