All Forum Posts by: Alyssa Strom

@Abraham Reddy You aren't alone in struggling to find a deal in the Twin Cities right now. Inventory is low and demand for 2-4 unit multi-family is still high. Most owners know it's a seller's market and even properties that seem "overpriced" are selling in a few days with multiple offers. My recommendation is to get in front of a seller before they list. Talk with your realtor about a strategy and mailing list for the neighborhoods you like the most and write a personal letter. Boring but it can work! As far as networking I think in-person events are the quickest way to get to know other investors but you could start reaching out to people on BP and meet virtually for now. Ultimately, if you hear about a deal via networking groups or Facebook groups it usually isn't much of a deal so it's a good idea to let people know what you're looking for as you build your network. Good luck! 

@Grace S. Assuming the address is the one have you listed in the report: If you're going to live there this is a dream house hack. Will absolutely hit ARV in that location and appreciate over time. You could Airbnb the units for better cash flow than you have projected but it still doesn't make much sense as purely an investment property. If you've got to spend some cash before the year-end there are better opportunities out there even if you could get it for $600k.

@Diana Gomez Hernandez You should review the current eviction moratorium in effect in Minnesota in regards to non-renewals. Housing Link and HomeLine both provide a great overview of the current rules.

@Arion Trammell Agree with @Mack Benson. It will be difficult to find a house hack that is also going to cash flow. You could focus on fourplexes which may get you closer to that goal than a duplex, but you'll need to save up more cash for the down payment. I think a reasonable house hacking goal in this market would be reducing your current rent (or what you would be paying in rent) in half or more. This will depend greatly on location. 

Other things to consider: will it cash flow after you move out, condition of the property to determine CapEx and repair budget, ability to increase rent amounts/improve the property while you live there. Additional perks of a house hack are saving money for your next purchase and real-life experience learning how to manage a property.

Confirming what everyone above said! 1% rule is considered a deal these days especially in popular, competitive neighborhoods and any MF in the suburbs.

Join the Millennial Investor Group and local property management experts to get all your management questions answered! 

Featuring:
@Elzie McGee - 7 years of progressive experience in managing large multifamily communities. Currently overseeing daily operations of a multi-site portfolio of 1400+ units in the NW Metro and Central MN. Owner and operator of a growing portfolio of 10 long term rental units.

Brenda O'Connell - Owner of Auntie B's Rentals. Brenda has managed everything from 253 college bedroom rentals to Airbnbs. Experience at several local Property Management companies including MRG, Twin Cities Home Rentals, TRI Home Rental, Twin Cities Leasing and currently Renter's Warehouse.

Garrett Gordon - Recovering property manager turned realtor. Garrett currently self manages 30+ doors.

@Eric Bate The guy I'm using this year may still be taking on new clients in Saint Paul. I'll PM you.

@Elizabeth Ashantiva I second what @Noah Chappell said. Late fall through January is a really difficult time to find tenants so it's nothing you are doing wrong. Add COVID to the mix and a lot of people are staying where they are at. Keep dropping the price weekly until you fill it and sign a short lease so it renews May-August. $995 probably doesn't feel great but it gets it below $1000 which expands your pool of applicants. (Having one less month of vacancy makes up for the lower rent price). Allowing pets makes a big difference in the number of applicants you'll get but I understand if it doesn't make sense for your rental. All that being said, change the price but don't stray from your screening criteria. An empty unit is better than a bad tenant, especially with the current eviction moratorium. Good luck!

Similar to what @Mack Benson said, the Twin Cities is a large metro area. The most damage was in a small area of Minneapolis. From an investor buyer perspective, prices are still high and there is still a ton of competition. Some investors are exiting the Minneapolis market but there are other ones lining up to take their place. It takes work and patience (and most likely sweat equity) to find the cash flowing deals but it's still a great buy and hold market. 

Congrats @John Zilverberg! I'll PM you a few recommendations.