Minneapolis / St Paul Metro Area 2020 and Beyond

20 Replies

Hello, 

I am relatively new to the Twin Cities (~18 months) and am looking for SFHs to invest. I have currently have 1 property that I've had for 15 years in Ohio and am looking at opportunities to expand my portfolio. Most of my knowledge in the area is West and South of Minneapolis, but I'm sure there are other great areas, as well. Any advice and/or recommendations would be much appreciated!


Questions

1. What are some areas to consider for SFH - Ideally looking for 3/1 or 3/2 in B - B+ areas. I have generally looked west of Minneapolis (Bloomington, Minnetonka, St. Louis Park, etc.), but that's also what I am familiar with given where I currently live.

2. Does anyone know or recommend a real estate agent / broker who understands investments?

3. What do you think of the current real estate market in the area? Any trends that you are seeing? I think the market is frothy, but also that there are deals out there. I also think there is an opportunity in SFH in areas with decent schools in nearby suburbs. Thoughts?

Thank you, 

Jason

Originally posted by @Jason Galli :

Hello, 

I am relatively new to the Twin Cities (~18 months) and am looking for SFHs to invest. I have currently have 1 property that I've had for 15 years in Ohio and am looking at opportunities to expand my portfolio. Most of my knowledge in the area is West and South of Minneapolis, but I'm sure there are other great areas, as well. Any advice and/or recommendations would be much appreciated!


Questions

1. What are some areas to consider for SFH - Ideally looking for 3/1 or 3/2 in B - B+ areas. I have generally looked west of Minneapolis (Bloomington, Minnetonka, St. Louis Park, etc.), but that's also what I am familiar with given where I currently live.

2. Does anyone know or recommend a real estate agent / broker who understands investments?

3. What do you think of the current real estate market in the area? Any trends that you are seeing? I think the market is frothy, but also that there are deals out there. I also think there is an opportunity in SFH in areas with decent schools in nearby suburbs. Thoughts?

Thank you, 

Jason

 What area is your property in Ohio? I am in Columbus, Ohio

Originally posted by @Jason Galli :

@Remington Lyman - it’s in Dublin. Right off of 161 and Perimeter Road.

 Great area! I am mostly in Old North Columbus, Franklinton, and Southern Orchards

@Jason Galli Welcome. As a Bloomington resident I always caution people that Bloomington should be looked at as 2 cities. West Bloomington (Jefferson) is different from East Bloomington (Kennedy). Kennedy residents will try to argue that, but all of the numbers clearly show that Jefferson is better. Make sure you keep that in mind during your search. (I’m a Kennedy resident in case you think I’m just biased.)

With that said, the southwest-west portion of the metro is a great market. Expensive homes, but likely to hold value with strong school districts. (Eden Prairie, Edina, Minnetonka, Orono, Wayzata, etc)

Sounds like you have a good reference for an agent. If that person does not work out for any reason feel free to message me and I can recommend a few others.

@Jason Galli 

1. SFH - Western suburbs are slightly higher priced though appreciation is slightly better too. It's a trade off. So, answer is it depends on a few factors. Are you planning to live in this house? First tier suburbs are great too, like Golden Valley or St. Anthony or Hopkins. If you are planning to live in the property then you can have less down payment rather than the standard 25% down on an investment property.

2. Check us out as I run a team of investment property realtors. Look under bigger pockets events for livestream interviews about investing.

3. Trends - I agree with you that good schools are always a draw and help values stay strong on properties. Location still stands as the most important, even within a suburb, it can come down to the street, neighbors, whether there is an anomaly, like high wires, or nearby railroad tracks, etc. 

Also, a standard investing formula of buying 3 BR roughly 1200 sf house is valid in most markets. That would be considered first time home buyer inventory. So whether you keep for rental for however long or decide to sell, it is the most desired type of housing and always has a strong demand. I would call this a two play plan. Smart in this changing economy.

As far as the market in the Twin Cities right now, there is a lack of inventory, when something gets listed it's been moving quickly, within days. We are still seeing multiple offers and there is definitely tactics to getting what you want. There is opportunity from our recent events where more people are now making the decision to move. All this time at home has spurred some home improvements and getting prepared to sell and also some families have experienced unfortunate events that cause downsizing or selling. You'll see action and movement in housing in spite of unrest. Hopefully, housing will lead the economic recovery as predicted. 

Originally posted by @Corey Hawkinson :

@Jason Galli Welcome. As a Bloomington resident I always caution people that Bloomington should be looked at as 2 cities. West Bloomington (Jefferson) is different from East Bloomington (Kennedy). Kennedy residents will try to argue that, but all of the numbers clearly show that Jefferson is better. Make sure you keep that in mind during your search. (I’m a Kennedy resident in case you think I’m just biased.)

With that said, the southwest-west portion of the metro is a great market. Expensive homes, but likely to hold value with strong school districts. (Eden Prairie, Edina, Minnetonka, Orono, Wayzata, etc)

Sounds like you have a good reference for an agent. If that person does not work out for any reason feel free to message me and I can recommend a few others.

 Thank you very much, Corey. Very helpful and I will certainly contact you on the agent side if needed. Sounds like a still need to do a little research on the details in Bloomington so I really appreciate that insight. Have a great day! 

Originally posted by @LeAnn Riley :

@Jason Galli 

1. SFH - Western suburbs are slightly higher priced though appreciation is slightly better too. It's a trade off. So, answer is it depends on a few factors. Are you planning to live in this house? First tier suburbs are great too, like Golden Valley or St. Anthony or Hopkins. If you are planning to live in the property then you can have less down payment rather than the standard 25% down on an investment property.

2. Check us out as I run a team of investment property realtors. Look under bigger pockets events for livestream interviews about investing.

3. Trends - I agree with you that good schools are always a draw and help values stay strong on properties. Location still stands as the most important, even within a suburb, it can come down to the street, neighbors, whether there is an anomaly, like high wires, or nearby railroad tracks, etc. 

Also, a standard investing formula of buying 3 BR roughly 1200 sf house is valid in most markets. That would be considered first time home buyer inventory. So whether you keep for rental for however long or decide to sell, it is the most desired type of housing and always has a strong demand. I would call this a two play plan. Smart in this changing economy.

As far as the market in the Twin Cities right now, there is a lack of inventory, when something gets listed it's been moving quickly, within days. We are still seeing multiple offers and there is definitely tactics to getting what you want. There is opportunity from our recent events where more people are now making the decision to move. All this time at home has spurred some home improvements and getting prepared to sell and also some families have experienced unfortunate events that cause downsizing or selling. You'll see action and movement in housing in spite of unrest. Hopefully, housing will lead the economic recovery as predicted. 

@LeAnn -- thank you so much! You're response was truly that I was looking for so I greatly appreciate all the help! I will definitely look your team up. Thank you again and have a great night!

 

@Bjorik Mutize thank you so much for the recommendation shout out! 

@Jason Galli There has been a lot of great info in this thread already! I would love to chat more about what your reasoning is behind single family and what your goals are. Nobody can help you now, if they don't know what you are planning on accomplishing for the future. Message me and lets get together soon.

@Jason Galli

1. What are some areas to consider for SFH - Ideally looking for 3/1 or 3/2 in B - B+ areas. I have generally looked west of Minneapolis (Bloomington, Minnetonka, St. Louis Park, etc.), but that's also what I am familiar with given where I currently live.

-Richfield, Southeast Minneapolis, Midway area of St Paul, Dayton's Bluff, West 7th, I really like west st paul right now as well. Also, I like some of the first tier suburbs where you can still buy some value and prices aren't inflated like other areas.

2. Does anyone know or recommend a real estate agent / broker who understands investments?

-I am an agent and investor in the twin cities. As an agent I work primarily with investors and would be happy to help if needed. I have some decent off market deal flow and can keep my eye out for you.  I would say interview a few agents, get references, and work with someone who you have a good fit with.

3. What do you think of the current real estate market in the area? Any trends that you are seeing? I think the market is frothy, but also that there are deals out there. I also think there is an opportunity in SFH in areas with decent schools in nearby suburbs. Thoughts?

-The market has very low inventory right now and the buyer demand is very high. Many things are in multiple offers the day they list. Still some deals out there but you kind of need to make your own luck. 

If you ever want to chat just holler. Good luck out there!

@Jason Galli Welcome! There's always opportunity but it is a difficult market for SFH investments right now. Limited inventory and a ton of competition under $300k. There were 19 other offers on a St. Paul SF home a buyer of mine liked. I'd start trying to dig up some off-market deals through whatever strategy you like (direct mail, cold calling, etc.). Also, check out Fridley & Robbinsdale. Good luck!

@Alyssa Strom

@Jason Galli

Alyssa, When I hear 19 offers on a house, I just get amazed. Was it just priced so low by the agent that it drew lots of people in the hope for a bidding war or was it just a really nice house in a nice area that was cheap? I have a recently fully renovated SFH in S MPLS that I'm currently renting out that I will be selling this fall/next spring in the $260-$270 range but will probably sign a lease extension until 6/1/21 as no non renewals aren't currently allowed. Completely renovated/turn key. Never thought much of the market for SFH rental homes as that strong so was probably going to wait and sell for an owner/occupy. thoughts?

@Bruce Runn It was a nicely remodeled starter home in Como (with older mechanicals). Priced a little under market but I was shocked by that number of offers. That was the highest number I've seen but not super unique right now. I'd definitely wait to sell to an owner occupant. If the market continues the way it is, next spring will be a perfect time to sell a fully renovated SF in S Mpls! 

I have lived in SW Minneapolis for nearly 10 years and absolutely love it. I think it a smart city to invest in. With the robust healthcare system and Fortune 500 businesses, there is a steady flow of potential renters. Places with good accessibility to the bike routes and on the new SW Transit line would be strong areas to look. Richfield has been undergoing big upgrades - I would wager there will be another mass transit line going there in the next 10 years, and any western suburbs seem to be always very attractive to live.

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