Posted 8 days ago

Updates on Our Places in Duluth

I haven't done an update post for a little bit so here it goes. Our most recent purchase was a single family property in the Chester Park neighborhood of Duluth which we purchased off-market, thanks to networking with other investors. We closed on this one back in late July and had a goal to have it leased by September 1st. Working with Heirloom Property Management, they were able to identify some great tenants within a couple weeks of us closing, secure an application, and have it leased for 9/1. 

Fortunately, all 7 units in our portfolio are fully leased through 2021 and we haven't missed any rent payments going back to March. The biggest ongoing project is with our triplex in Lincoln Park. If you didn't see my earlier post about this, the previous owner built an external staircase without a permit on city-owned property. The City of Duluth determined that staircase needed to come down and we needed to utilize the internal staircase between units 2 and 3. Heirloom's construction team is taking this project on for us and we are on schedule to have it completed by 12/31. 

It is a pretty large, unexpected expense. However once it's done, I do think it will add value to the property and make it easier to get the units leased since people won't have to walk up a fairly steep exterior staircase in January in Duluth in order to get inside. 

We have our duplex listed for sale since it's appreciated quite a bit in value since we purchased it but haven't received any offers yet. Our other single family home on 4th Street is rented out and has been a great asset for us since we purchased it. 

All in all, I'm happy with where things are at and am working on making my next move.