All Forum Posts by: Corey Hawkinson

@Ty Jackson 2 days ago I submitted an offer that was $40k over asking. I got beat out by at least 7 people. Obviously my competitors haven’t gotten the memo that the Twin Cities area is terrible and they should all stop making offers. :)

@Corey M. It does sound correct. It is not as simple as saying everything is calculated per square foot. All else being equal, a smaller unit will sell for a higher amount per sq fit than a larger unit. So the appraiser is correct there.

Also, an appraiser typically will not discuss the appraisal directly with the customer. I don’t blame him for ending the conversation quickly. They can get in trouble for discussing the appraisal directly with the customer. It should always go through the lender.

@Ari Hadar I meant that when you read his story you can tell that he found a great person to teach him about real estate in his local market.

In general, I think people put too much effort into finding some magical mentor that will teach them everything about real estate. In real life, if you put in the effort and show up to meetings you will meet several people. Instead of having 1 mentor you will have 5-10 people that will each teach you something. You’ll be able to put this all together.

@Patrick Giblin I’m very similar to Mack. I bought 2 of my properties in winter. One of those was a great deal for me. (The other was my first purchase ever. I was young and dumb. Now I’m older and a little less dumb.)

You can find good deals in winter but that doesn’t guarantee success. Obviously you have to do the same level of due diligence and try to determine the risk for the things you can’t know. Meaning: you won’t be able to do a full roof inspection but hopefully you can get in the attic to verify if there is water damage. You can also use a roof rake to see some of the roof to guess the whole condition.

@Dustin Robinette Welcome from another Twin Cities investor, although I’m no where near the heavy hitter that the previous commenters are.

@Brittany Peters If you're already doing a BRRR on a quad you're setting a good foundation in your journey. Feel free to PM me. I can help connect you to other local groups that might work well for you.

@Ian Ashcroft Mark me down as another vote for no to North Minneapolis. I think every comment I saw from someone with Twin Cities knowledge/experience is saying cut your losses and sell.

@Emily Christiansen Mack said it very well! Highland Park is probably the best area of St Paul, but you will want to research the Ford plant development. I’m not sure whether that will increase or decrease property values in the area.

@Eleazar Aragon I agree with the other people saying to ask the seller for proof. It should be very easy to provide. I’m selling a condo now. A buyer asked about payments during a showing. Took me a few minutes to pull up on my phone. Really easy.

@Brandon Miller Joe and others have given a ton of great information. No need for me to restate what they have said so well, but I want to go back to one thing...

To go way back to the original post, I would question how you come up with $1,200 cash flow from a property that rents for $1,500. A mortgage typically has Principal, Interest, Taxes and Insurance. (PITI) If you pay off the mortgage you would remove the principal and interest, but you would still have taxes and insurance to pay.

On top of that you will need to factor in repairs, vacancy, etc. I believe that might be throwing off your analysis somewhat. I think the difference between the cash flow with a mortgage and the cash flow without a mortgage is smaller that your jump from $150/month to $1,200/month.