All Forum Posts by: Alyssa Strom

@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.

@Brittany Shearer You're right it's absolutely a seller's market and even the off-market "deals" are priced high right now. That being said, I personally (no crystal ball) don't see the Twin Cities market taking a huge hit given all the reasons @Account Closed is still buying this year, there are still opportunities. Best of luck to you! 

For those of you who are not members of the Millennial Investor group or aren't on Facebook here is a Zoom link for tomorrow night: https://zoom.us/j/93442722397

@Huy Le @Todd Ashley

@Nicholas Overbeek Will you be finding and sourcing the deals? If that's the case I'd do a google search for the top wholesalers in the area, interview a few of them and find one you trust. From there you could work out a payout for bird-dogging for them. This way you maximize your time and partner with someone with a legit buyer's list. It's great to find a deal but it's equally important to have someone that will actually buy it.

Also, in your short-term REI plan (& if it makes sense for you) consider house hacking a multi-family property with a 3.5% down FHA loan. There are also local down payment assistance programs you can take advantage of so your out of pocket costs can be less than you think if you can owner-occupy.