All Forum Posts by: Alyssa Strom

@Mario Russo Got it! It will be difficult to get much cash flow in the western suburbs due to demand but it depends on what you are looking for. You may also be able to find a townhome portfolio out that direction the numbers could work on. If you're looking for 5-10 unit multi-family and want to stay west of the river I'd focus on the first/second ring suburbs north of Minneapolis. If you want to venture over towards St. Paul - I'd look at appreciating neighborhoods within St. Paul and West St. Paul and South St. Paul. Again, it all depends on the strategy you want to pursue! 

@Mario Russo You're correct it's competitive out there and most 5+ unit properties that hit the market aren't the "deals". What return are you looking for and any areas of town you want to focus on?

@Chad Maschke Welcome! I'd drill down on what type of investing you'd prefer depending on how active you want to be - flipping, buying and hold, syndications, private lending, etc. From there, read through all the recent BP posts and books available on that topic and find a local networking group that fits your preferred niche or close to it. It's a combination of gaining more knowledge (which you're already doing!), building a network in the community you want to invest in, and taking action. By building a network you'll be able to find better deals, gain insight on the local market, and get referrals/recommendations on the best resources to help you succeed as an investor.

Thanks for the shout out @Tim Swierczek :-) 

@Kevin Milton I'd think even if the listing agent would love to triple dip on commissions, the sale of your home contingency would be a deal-breaker for a popular duplex in this market. As the seller, I'd question the listing agent's ethics if they tried to steer me towards an offer (contingent upon a sale) with a buyer they are also representing. You'll also want to have a pre-approval letter otherwise no agent or seller will take the offer seriously. Buyer's financing is falling through on more deals right now so listing agents & sellers are doing their due diligence. 

Now, if something has been sitting on the market for 30+ days then you may be able to make your offer contingent upon the sale of your home (depending on location and price point of yours). Competitive offers right now are over list price with as few (preferable zero) contingencies as possible. Buyers are waiving inspections, appraisal contingencies, and many duplexes are going for $30-$50k over list price. It's competitive out there but not impossible to land the right deal!

@Bruce Runn It was a nicely remodeled starter home in Como (with older mechanicals). Priced a little under market but I was shocked by that number of offers. That was the highest number I've seen but not super unique right now. I'd definitely wait to sell to an owner occupant. If the market continues the way it is, next spring will be a perfect time to sell a fully renovated SF in S Mpls! 

@Joseph Christopher I wouldn't be too worried. MF prices in Minneapolis and Saint Paul continue to rise (are we at the top of this market cycle ... your guess is as good as mine) and most investors are sticking around. My hope is that there are some positive changes that come out of all of this but similar to the 2040 plan I don't see any major changes overnight. When 2040 passed, you'd think from the national news that there were triplexes going up everywhere. I can count on one hand on how many successful triplex conversions or new triplex construction projects I've heard about. 

@Jason Galli Welcome! There's always opportunity but it is a difficult market for SFH investments right now. Limited inventory and a ton of competition under $300k. There were 19 other offers on a St. Paul SF home a buyer of mine liked. I'd start trying to dig up some off-market deals through whatever strategy you like (direct mail, cold calling, etc.). Also, check out Fridley & Robbinsdale. Good luck!

@Will McInerney What @Tim Swierczek said plus I'll add some of the larger institutions have really tightened their guidelines so if you are starting your search some of the medium-sized local banks and brokers (like Tim) are a great place to start.

@Jordan Crockett Welcome! I second everything that @Adam Tafel said. Patience and creativity are key. Since most properties do receive multiple offers, stick to your numbers and be willing to stop at a price that no longer makes sense. Harder to do on some of those lovely turnkey duplexes you can find. 

As far as the property itself, knob & tube wiring is getting harder to insure. On a recent deal, 9 out of 10 insurance companies I called said they wouldn't insure an owner-occupied property with K&T. Obviously, if you get a great price anything can be fixed but the replacement costs of gravity furnaces, sewer lines, and major foundation issues can be a deal-breaker. You won't know about the sewer line until you get a property under contract but I'd highly recommend getting a scan done during the inspection period.

Best of luck to you! 

@Tyler Santos Yes! You can zap FB leads to Hubspot.