All Forum Posts by: Adam Tafel

Too much to keep within a single post, but I'll give you my two-cents. 

St. Paul's rent control is looking like it will be more strict than Minneapolis. As far as permitting and rental inspections, I would much rather deal with St. Paul than Minneapolis, just my personal take. 

Outside of those two issues - there are plenty of neighborhoods in either city I'd happily invest in - and plenty I would avoid at all costs. 

Hello Denver BPers! 

I have an opportunity to invest in a business in Denver. It's a failing medical cannabis dispensary, I have some good friends very familiar with the industry who are looking for additional funding... We would likely be tenants with right of first refusal to purchase, although purchasing the building might also be on the table. 

I will be in town (Denver) this week for a few days, meeting with the business owner and doing an audit with other investors. 

Does anyone have a recommendation for a commercial broker or business broker locally who might be able to lend their expertise? This deal will ideally be 80% seller financed. I am completely outside of my wheelhouse on this one, but it sounds like a cool and potentially lucrative opportunity worth pursuing. 

Any recommendations are appreciated! 

'Twas a pleasure working with you! Let's get after deal #2 before too long.... 

https://www.twincities.com/202...

I have owned/managed a handful of STRs in the Twin Cities area over the past 7 years. Feel free to shoot me a DM, happy to chat. We have seen it all! 

@Micah Haworth shoot me a PM! Happy to connect you. 

How high will interest rates need to climb in order to affect the residential real estate market?  

I'm curious of people's opinions of their specific markets - are we seeing any pullback with rates in the upper 4's? 

In my market (Twin Cities,MN) our ratio of household income/housing values seems much more in line with fundamentals than other markets, many would argue that we have plenty of room to grow. You don't need 25 offers to sell a house, 5 will do just fine. 

What about you? Calling all brokers, lenders, smart-people, economics-majors, battle-hardened landlords who've survived multiple housing cycles... what do you think ?? 

@Jason Clemens - I've been running STRs in St. Paul for the past 7 years. You can approach a STR deal like any other - if you can BRRRR or add sweat equity why not, at the end of the day the goal is to build wealth. Post closing (or refi) analysis will change. Roughly 20% of deals that we analyze make sense from a STR perspective, many times the juice ain't worth the squeeze. Knowing how to predict income and expenses is the most important aspect.

The commenter above is correct - management fees for STRs will kill you, making the additional risk pretty much worthless. A perfect candidate for a professionally managed STR purchase is a wealthy person who wants the property for personal use and convenience, not someone who's goal is to build wealth.

I don't think anyone should go "all in" on STRs. I typically advise investors to give Airbnb/VRBO a shot with an existing property, see if you like it. We've had a lot of success buying modest (and mostly turn-key) SF homes in and around the Twin Cities and renting them on a monthly basis, we normally double market rent. After the additional expenses we might profit 20-35% above a typical LTR. The cost is our time and energy. 

@Tim Swierczek closed 30+ duplex deals for our clients over the past few years. Rates are competitive- he’s also a local investor which gives clients a leg up on analysis. 

@Evan Kraljic @Jordan Moorhead and I had a nice thread going last year, let's see how we can motivate and keep each other accountable in 2022! Feel free to post your goals and let's follow up at the end of the year to see how we did. 

I'll start... 

1. Purchase a 4 unit building in 55102 with an FHA loan.

2. Partner with @Tyler Joas on a reno project, either to hold as partners or flip. 

3. Take it easy EVERY WEEKEND with the family, after 4pm Saturdays and 3pm Sundays, no phone calls no showings! 

4. Help 50 clients buy/sell a home in MN.

5. Help my teammates buy/sell 50 homes in MN. 

6. Become an unofficial certified home appraiser (educational goal). 

7. Play more music, one gig per month starting this spring. 

8. Create an efficient/organized system to partner with other brokers to sell more off-market deals. 

9. Gym 4 days/week. 

I think that's enough - I was maybe 6/10 on my 2021 goals, going for 100% this year.