Columbia Heights (Minneapolis) MN Househack Analysis
9 Replies
AJ Smith
New to Real Estate from Moline, IL
posted 7 months ago
| PROPERTY INFO | |
| Property Address | 4506 Fillmore St NE, Columbia Heights 55421 |
| MLS# | 5540705 |
| Number of Units (Duplex, Triplex, 4plex) | 2 |
| Crime Rating (Low/Medium/High) | Low |
| Property Listing Price | $ 315,000.00 |
| Rehab Needed? (None/Light/Medium/Heavy/Full) | None |
| Square Footage | 2,900 |
| Rehab Price/Square Foot (Refer to Key on Right) | $ - |
| Total Rehab Estimate | $ - |
| Total Cost (Purchase + Rehab) | $ 315,000.00 |
| MINIMUM Down Payment Required for Purchase | $ 15,750.00 |
| Conventional Loan Amount (Total - Down payment) | $ 299,250.00 |
| FULL OCCUPANCY CASH FLOW | |
| Est. Monthly Rent (using www.myrentrates.com) | $ 3,200.00 (from listing) |
| 1% Rule (Rent should be 1% of Purchase + Rehab) | $ 3,150.00 |
| Does this PASS the 1% Rule? | YES |
| Est. Monthly Payment (PITI + PMI) - Mortg. Calculator | $ 2,060.12 |
| Est. Monthly OpEx (PITI + PMI + Utilities + Reserves) | $ 2,948.12 |
| Est. Monthly Cash flow (Rent - OpEx) | $ 251.88 |
| CoCRoI | 19.2% |
| HOUSEHACKING CASH FLOW | |
| Est. Monthly Rents | $ 2,666.67 |
| 1% Rule | $ 3,150.00 |
| Does this PASS the 1% Rule? | NO |
| Est. Monthly Payment | $ 2,060.12 |
| Est. Monthly OpEx | $ 2,948.12 |
| Est. Monthly Cash flow | $ (161.45) |
| CoCRoI | -12.3% |
ASSUMPTIONS
| Utilities (Varies by Property) | ||
| Electricity | ||
| Water & Sewer | 100.00 | |
| Garbage | 60.00 | |
| Shoveling/Lawn Care | 120 | |
| Total | $ 280.00 | |
| Reserves | ||
| Vacancy (%) | 5.00% | $ 160.00 |
| Repairs & Maintenance (%) | 7.00% | $ 224.00 |
| CapEx (%) | 7.00% | $ 224.00 |
| Management Fees (%) | $ - | |
| Total | $ 608.00 |
Minneapolis Househackers, would live your feedback on this analysis.
I feel pretty good about this one. Rents of ~$1600 per side seem reasonable for this area (per MyRentRates.com and the listing).
Each unit has 3br/1ba.
If you are familiar with the area, I hope you'll let me know how I can tweak my analysis to make it more accurate.
AJ
James Hamling
Investor from Minnesota
replied 7 months ago
3 words: Debt Coverage Ratio....
AJ Smith
New to Real Estate from Moline, IL
replied 7 months ago
Originally posted by @James Hamling :3 words: Debt Coverage Ratio....
Thanks for the feedback James.
For my future reference, what would a good deal look like in your estimation?
Is there a specific cash flow number? Equity number? DCR?
I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.
Thanks for your time,
AJ Smith
James Hamling
Investor from Minnesota
replied 7 months ago
Originally posted by @AJ Smith :Originally posted by @James Hamling:3 words: Debt Coverage Ratio....
Thanks for the feedback James.
For my future reference, what would a good deal look like in your estimation?
Is there a specific cash flow number? Equity number? DCR?
I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.
Thanks for your time,
AJ Smith
A good deal would look something like this https://www.biggerpockets.com/...
AJ Smith
New to Real Estate from Moline, IL
replied 7 months ago
@James Hamling could you put the pdf on here? I'm not a pro member so it seems they've restricted my access to looking at that analysis.
Jacob Johnson
from Saint Paul, MN
replied 7 months ago
Hi AJ - same note I posted on a previous analysis for you, $1600 seems very high for this area. $1400 seems optimistic, and I'd stress test it down to 12.
AJ Smith
New to Real Estate from Moline, IL
replied 7 months ago
@Jacob Johnson appreciate the feedback. I will stop taking listing rents at Face Value and start doing comps with other places in the area.
Jacob Johnson
from Saint Paul, MN
replied 7 months ago
no problem! It might make sense for you to pay for access to Rentometer or something similar, you can get basic access for a year for a pretty reasonable price. I personally like to check a few different places to come up with a suitable average.
AJ Smith
New to Real Estate from Moline, IL
replied 7 months ago
@Jacob Johnson found out its on sale; 1 year for $49 - just subscribed! Thanks!
Jacob Johnson
from Saint Paul, MN
replied 7 months ago
@AJ Smith fantastic!