Minneapolis, MN · Member since 2016 · 51 posts · 19 votes
Anyone here live in Minneapolis/St. Paul area and invest in Rochester B&H (specifically multifamily)? I'm considering Rochester real estate for my next deal, and I wanted to get experienced investors thoughts on the following:
How do you think about property management? Do you treat it like it's a 100% remote market or are you still checking on the property in person a few times a year?
How competitive is Rochester's market vs. the Twin Cities' market?
Any neighborhoods to avoid?
What kind of vacancy rates and property management fees should one expect?
Real Estate Agent · Rochester, MN · Member since 2017 · 49 posts · 23 votes
9y
Hello from Rochester!
I can answer a few of your questions. Multifamily have been quite difficult to get ones hands on over the past year+. They just aren't getting listed and there's a lot of interest. A quick look at the MLS and there's 4.
We have a number of great property management companies in the area. I would interview them once you have a property under contract on a particular property as the rates vary and a number of them have minimums that make for a high percent if you get a property with an efficiency, for example. I've seen 7-10% fees.
Vacancy rates will be location specific. There have been a tremendous amount of new apartment buildings being built.
I would be happy to chat further about specific properties!
Realtor · Minneapolis, MN · Member since 2016 · 245 posts · 107 votes
9y
Following this thread. I invest in Omaha as I used to live there and still have family close by in Iowa. I still check in on the place from time to time. I am a big proponent of property management as I think it will eventually be required if you plan to scale your business large enough.
I really like the idea of investing in Rochester for multiple reasons.
Investor · Weston, WI · Member since 2016 · 105 posts · 114 votes
9y
I am excited to see the responses, great questions! With the amount of capital flowing into Rochester in the near future I would love to be able to participate in the growth.
Real Estate Agent · Rochester, MN · Member since 2017 · 49 posts · 23 votes
9y
Hello from Rochester!
I can answer a few of your questions. Multifamily have been quite difficult to get ones hands on over the past year+. They just aren't getting listed and there's a lot of interest. A quick look at the MLS and there's 4.
We have a number of great property management companies in the area. I would interview them once you have a property under contract on a particular property as the rates vary and a number of them have minimums that make for a high percent if you get a property with an efficiency, for example. I've seen 7-10% fees.
Vacancy rates will be location specific. There have been a tremendous amount of new apartment buildings being built.
I would be happy to chat further about specific properties!