All Forum Posts by: Adam Tafel

@Frank Hinck - made it through your post, I'll take that beer whenever you have the time...

Does the $200/mo include deductions for cap-ex/repairs/vacancy? What market of Southern MN are you looking in? What does the population growth look like? Job market? How old is the home? I would personally want a larger cushion before investing in small-town MN, but that's just me, completely biased and bullish for the Twin Cities rental market. I'm not about to double-check your calculations; you're obviously competent when it comes to finance. 

Many over-leveraged Airbnb hosts bailed on their STRs this Spring. I manage/own 8 Airbnbs in the Minneapolis area, they are all fully book through the summer. Airbnb doesn't cost much to test (furniture, linens, pictures), why not give it a shot? If you can afford a little short-term vacancy it's a low-risk experiment. 

You might qualify for a smaller down payment conventional on 2-4 unit MF, depending on your income. I'm assuming you've exhausted all options with your lender? 

I use Rentometer.com all day. You'll want your agent to look over the comps to make sure they're accurate, can be a bit misleading at times. 

Who is your lender, and why are you only approved for SF? Sounds strange to me, I've never heard of a buyer being limited by a certain property type. Shoot me a message if you need any assistance, I'm in St. Paul but grew up in WI. 

It's always easiest to start in your local market. Lots of people invest out of state, but most have some decent experience. Get a few deals under your belt upstate before venturing elsewhere, just my two cents. 

Do you have goals of purchasing more properties in the future? You'll want to save the VA for your highest dollar purchase in order to get the most bang for your buck. Depending on your income you might qualify for a 5% conventional duplex loan, speak with your loan officer about the possibility. Make sure your lender is also an experienced investor, as well as your agent. I would personally rather have a greater return on my cash than a slightly lower interest rate, but thats me.

I wouldn't buy a short-term rental that only works short-term. Check out long-term rental comps in the area and see if rent will cover expenses. If your goal is to buy a nice vacation home and enjoy some supplemental income I suppose you can do whatever you'd like, but STR investments carry plenty of extra risk and upkeep. I have no experience with this particular market, but have been investing in STR in my market for the past 5 years.

You'll need to honor the terms of the original lease, does it automatically go month-month? I would probably get them on my own lease if they want to resign, it shouldn't be too complicated. 

For some reason I didn't see the original post. Get to know the calculators on BP and analyze each individual property. You can reach out to investors in your local forums to get a sense for cap rates and cash per door baselines, as each market is different.