All Forum Posts by: Brett Sorenson

I worked for Boulay which is a regional CPA firm based out of Eden Prairie which specialized in real estate. They offer great tax planning as well as any type of cost seg studies that could be deemed necessary. I would highly recommend them.

Micah - I have owned an owner occupied duplex in south Minneapolis the last 3 years. The local police station will offer a "landlord" course which basically runs over your responsibilities to your tenants as well as the community. It actually is a solid course to attend. In this course they will cover when the city will inspect the property which in most cases is every 3ish years.  They will also cover the "fair housing" rules and the situations in which you could get in trouble for different types of discrimination regarding potential tenants and who and who doesn't qualify etc.

One of those workshops that last a couple hours, is informative if you are new to the area, and also looks good in case a situation comes up that needs to be resolved etc.

I am no real estate pro but that is my thoughts regarding the area.

Thank you for the thoughts. I am definitely going to shop around because what I am currently being quoted is a joke. It is just annoying because of all the people that are likely to shop around and find the best rates it would be those in the rental industry who are constantly managing numbers.

It is just frustrating that companies wouldn't give you their best rate upfront.

In August of 2013 I bought a duplex and did the whole "owner occupied" bit. So far it has worked out great and I will be moving out shortly. With that being said I decided I should probably evaluate my insurance needs.

The duplex appraised for 260k last year in Minneapolis MN. New furnace (2014), new AC (2015), new roof (2010), and all updated mechanicals.

I just got a quote from an insurance company for over $400 a month. I was taken back by this. Previously I was paying $140 a month and thought that seemed reasonable.

They keep saying....you need to insure the cost to rebuild the entire place and this and that. I owe 170k on the place and couldn't be happier if it was insured for 300k and I received a check for that much in case everything went well. I don't think a house that would sell for around 275k needs to be insured up to 425k (cost to rebuild).

Let me know your thoughts...I just can't afford to pay $400 a month in insurance. Nearly 5k a year for a house that cost 175k seems ridiculous.

Brett

Thank you for the responses. I have 4 years of public accounting experience consisting of both tax prep and interim controller positions in the Twin Cities. Jack of all trades I suppose but would like to focus on re for the long haul. It really interests me and has so far been a very rewarding experience.

I am glad there are some other Minnesotans here. Does anyone work downtown?

I currently work in downtown Minneapolis and am finishing up my CPA. I bought my first duplex a year out of college and have loved the experience so far. There is nothing better than trial by fire and 3 years later I couldn't be happier I bought the duplex instead of the new car.

I am now in another financial position to evaluate another purchase in the very active Minneapolis market. I have been monitoring it constantly over the past couple years and very interested in any insights individuals may have. If you have any questions regarding the Minneapolis market ask away because I am fairly well versed and know the market/area very well after living here the last 27 years.

It wasn't until biggest pockets that I heard the 1% and 2% rule and I couldn't be more thankful that my first purchase met those requirements.

I am looking to learn and potentially be of any assistance in the Minneapolis market.

cheers,

Brett