Newbie couple in the Twin Cities/ Minneapolis / St. Paul area

23 Replies

Recently moved back from California to MN where we’ve lived the past 4 years. While there, we had some luck renting out our townhome (that we’ve moved back into). Interested in exploring owner- occupied duplexes around metro area. Specifically looking South Minneapolis or Sunmit/Selby/Grand/Lowertown area of St. Paul but we are open to anything. Eager to listen to all advice! Thanks in advance!

@Maggie Hanjani Welcome and good luck. I have a several Minneapolis duplexes and one in Saint Paul. Feel fre to reach out if you would like to grab coffee and talk about investing. 

Hey @Maggie Hanjani ,

Welcome back to Minnesota!

Owner-occupying (often called "house hacking") is a great way to accumulate equity while experimenting with landlord life.

I wholesale properties through the Twin Cities, would be happy to help you find deals Realtors don't know about.

Maggie. Opportunities are everywhere. I have walked in your shoes 3 times in S. Minneapolis. The conversation starts with how much are you willing to sacrifice your definition of a "home" for higher investment returns. With low owner occupier financing the cash on cash returns can almost be infinite, so you will also want to include gross rent multiple analysis as well--how many multiples of the purchase price are in-place or estimated annual gross rents? The higher the number the longer the time it will take to pay off the purchase price in income, the lower the number the shorter time it will take for the income to pay off the purchase price. A mint condition Uptown duplex may be well north of 10 and a property that may not qualify for FHA (due to condition) may be 5 to 6. It is common to have the FHA appraisal flag small items, peeling paint, correct, re-appraise, and purchase. Good luck. My personal advice--if S. Minneapolis, stay east of 35W in S. Minneapolis. Purchase prices and real estate taxes tend to be way less, yet you can in pockets, find a great "best of breed" property and produce outstanding rents.

Updated almost 3 years ago

Gross Rent Multiple = Sale Price / Gross Annual Income

@Maggie Hanjani Welcome back to MN! I'm a local Realtor and newer investor here in Minneapolis as well. I moved back from NYC to get started in investing about 2 years ago and just sold my first rehab and now moving on to a SF rental next. I'd love to grab coffee with you and chat about my experience so far!

Welcome back to MN  @Maggie Hanjani ,

I am an agent and investor in the Twin Cities, I owner occupy a duplex in S. MPLS and I am closing on another duplex next month. Feel free to PM me or give me a call if you have any questions or want to get a coffee and talk real estate.

Happy Investing.

@Maggie Hanjani Welcome back to MN!! Good luck with your journey. I think @Brad Schaeppi is right on with what he is saying. There are some pockets in the twin cities where you can still find some great value. South Minneapolis being one and I also like the Midway area of St. Paul personally but there are others for sure.  I am a buy and hold investor who also has my mn real estate license. It is tough to battle the often multiple offer situation but if you're on the beat and get a competitive offer in you can totally acquire a great place. My client is closing on great 4plex in Bryn Mawr area this week.  To be most competitive I think it is best to become an absolute expert in a few areas so you can really start to understand value in a given property and you can move quickly with an offer. Also, more obvious, but having a solid relationship with your lender and really understanding the array of options is very helpful. Not all lenders are the same and some don't offer certain loan products that could be beneficial. 

Also, I host a monthly meetup in South Minneapolis that is a great place to meet like minded people and make some connections. I can shoot you the details. 

Good luck in your journey. The BP community is a huge resource.  

@Maggie Hanjani I love Saint Paul and am actually closing on a duplex there for a client today over in West 7th. Those areas you listed are going to be higher dollar although there are some off grand a few blocks that will still cashflow.

Welcome back Maggie! I've got two places in Duluth and am looking to get started here. Would be happy to connect!