All Forum Posts by: Adam Tafel

@Account Closed - If you are looking at listed properties(Zillow, Redfin, Realtor.com), just use an agent. As a buyer your agent is free, and you want experienced representation. Obviously my opinion is biased, so take that into consideration, but why not accept the free representation? 

If you enjoy REI and would like to pursue a career as an agent, absolutely get your license. You've already bought a few properties, which is more experience than many new agents have... Getting licensed for the sake of being able to buy your own properties might not be the smartest move. Having said that, I totally get the desire to be self-sufficient, and you want to be able perform due diligence without relying on others. You can find comps sold on Zillow and Redfin, learn to analyze properties, and learn to market to off-market sellers.

Forclosure.com and Auction.com are great for distressed/bank owned properties, but you'll still need representation for most of these to offer. 

If you find a great off-market deal, it might make sense to leave the agents out of it. You'll still need a broker or attorney to facilitate the transaction, but this can be done for a discount compared to normal commission rates. 

IMO the investors afraid of the new St. Paul/Minneapolis rules are overreacting, but I can understand why people are wary. Research the laws yourself, talk to local investors, and come up with your own educated opinion. 

The good news: most good agents will do a lot of work for free, and help you understand their process. 

@Aaron NA - this strategy is what allowed me to buy my second investment, which is now a cash-flowing vacation rental. My thoughts:

1. Yes, it's very easy, assuming you've got a nice home in a desirable area. Every time I've posted a CL or FB marketplace AD I'm bombarded with inquiries. I can show you examples of my marketing strategy. Get professional pictures and describe yourself in detail, you are selling yourself as a roommate (more than the home itself). 

2. With a 4/2 you could probably achieve 100% of the home rental value. For example, in my last househack the market rent for the entire home was around $1900/mo. I rented out 2 rooms for $650 a piece, and the master on Airbnb for $1200. Most months I got paid to live in my house after paying all expenses. On a 250k home your payment will likely be around $1250/mo, and the going rate for a room in St. Paul/Minneapolis ranges from $600-800/mo.

3. Central locations, close to public transportation, downtowns, hospitals, colleges, etc. You also want the neighborhood to be lower priced but convenient  (if you are to purchase a 4/2 with 250k). St. Paul : West 7th, Dayton's Bluff, West Side, Midway. Minneapolis: Powderhorn, NE, North. 

4. I haven't found that higher earners make better roommates. I've rented to med students, bartenders, interns, corrections officers, IT guys, retail workers, pretty much the whole spectrum of occupations. I critiqued housemates on a lifestyle/personality basis more than financial situation, and it worked out pretty well. 

The only thing I would add is to consider looking at 2-4 unit properties as well. They will likely cashflow better once your move out, and if you're willing to occupy a unit with roommates you'll see some pretty great returns. Feel free to reach out if you'd ever like any advice, happy to help. 

I'm currently running a pretty aggressive off-market 2-4 unit search in the St. Paul area. I pull addresses with Certificates of Occupancy from the .gov website (google it). Then check the tax records, and use a whitepages premium account to pull phone numbers. Responses are overwhelmingly positive, you just have to know how to enter the conversation. Probably 1/10 calls have some interest in selling (at some point in the future, for the right price)... these strategies can be discouraging at times, it's all about consistency and getting over the fear of rejection. Feel free to reach out if you'd ever like to discuss, good luck!  

@Chet Morgan - welcome to BP! Lots of people on here looking to network in the St. Paul area. Reach out if you'd ever like to talk! 

@Matt J. - too much to put into a forum post, but feel free to reach out. I've been managing MN Airbnbs for the past 5 years, happy to give you some insight. 

@Gabriel E. Martinez - welcome to BP! That's a good midset, delayed gratification is what it's all about. Buy a few income-producing assets before upgrading your personal home. However, you'll probably want to take advantage of owner-occupant financing. I recommend starting out by occupying a 2-4 unit property for a year, then moving into your next investment purchase for another year. 

It's inconvenient to move a few times, but it makes the most financial sense. You can acquire multiple investments for 3.5-5% down, rather than 25% payment on an investment loan. 

I really doubt that statistic is accurate. What's the square footage of the home? What are you local laws and occupancy restrictions w/ fire dept? If it's a big home in an area with lots of tourism, and you can charge big money for shorter (1-3 night) stays perhaps it will pay off. I've found that packing as many guests as possible into a property is sometimes asking for trouble (parties, big cleaning fees, damage). Your setup sounds fine though, sleeper sofas are your best friend in the Airbnb game. 

You'll need to occupy within 2 months of closing. From what I understand it won't be legal to rent the entire home out during your first year of occupancy. After a year has passed you could probably Airbnb for your times away? Your down payment might also increase with the cosigner, depending on property type. These are all questions for your lender, what market are you looking to buy in? 

@Rachel Hughes love the N64 marketing! Ha so great, I am stealing this. 

Cash for keys is your best bet if you are motivated to sell. The Twin Cities is a hot sellers market at the moment, depending on your location and price point it might sell very quickly. I would first contact a broker/agent to get an opinion on value, if they are confident it will easily sell you can start negotiations with tenants. Ideally the property will be vacant when you list it, but if the tenants take good care of the condo and are flexible you could list it before they vacate. 

Selling a condo with a long-term lease in place (that is cashflow negative) probably isn't going to happen, giving up a few thousand in rent will pay off when you sell at full market value to an owner occupant.