All Forum Posts by: Corey Hawkinson

@Kalvin Seidl Welcome to BP from another Twin Cities investor. I agree with a lot of the advice above. Take time to figure out what type of investor you want to be and dive in.

@Aleksi Moran Welcome to BP. I regularly attend 3 different groups. Connect with Tim (previous commenter) and he will give you a great list.

@Adam Blachnio Yes. Though a social work agency manages finding the tenants and works with them on a weekly basis.

@Adam Blachnio I own a 4-unit property that is dedicated to this type of housing. I am looking to buy more properties specifically for this type of investing. So clearly I enjoy this and the return makes it worth it in my opinion. My state calls the program Housing Support. (Though most MN people still call it GRH which is the former name)

There are several things to consider. The main question has already been brought up, the pre-maintenance cash flow needs to be higher to be successful. This is NOT passive investing!!! I have been to that property 12 times since December 1st, including Christmas Day. And no, I wasn’t dropping off presents to my tenants. Ha!

Please feel free to reach out and I can share more from my experience. There are certainly things to look out for! There are also things I recommend that can make you successful. (This goes for anyone stumbling across this post. Feel free to PM me if you’re interested in this type of investing.)

@Josh Bugbee I messaged you as we are not allowed to promote other groups here.

@Matt Byrne There might be many reasons why an investor would sell. Here are a few:

1. The investor doesn’t know what he/she is doing. I never like to assume this one. I also hate listings that emphasize “below market rents” too much. Buy a property based on the existing cash flow, and make a bigger profit if you improve the cash flow. Never assume you can instantly increase rents.

2. The investor wants to move up through a 1031 exchange. I’m very small compared to most people on this site but even I have completed a 1031 exchange. Great tool for a buy and hold investor. It might make sense to sell a duplex making $500 a month to buy a 4-plex making $1,500 a month. The duplex can still be a good purchase.

3. The investor wants to retire. This happens a lot. This was the case on the property I purchased most recently.

With all this said, you should try to understand why the investor is selling. And never trust someone on the other end of the sale. Verify everything.

@Josh Bugbee Welcome to BP from another Twin Cities investor. I personally love the house hack option for people getting started in real estate investing. My biggest mistake was not starting with that when I had the chance.

My recommendation would be to find local, investor focused real estate professionals to work with. Also, attend meetups when those start back up. There are several good options in the Twin Cities. Feel free to message me if you want specific recommendations. Or Tim (my phone won’t let me tag people) will also be here soon to offer quality recommendations. :)

@Jake Hilden Welcome to BP from another Twin Cities investor. Looks like you’re already messaging with Tim. Hopefully I see you at one of the events/groups he recommends. I regularly attend 2 that he recommends. (All of his suggestions are good, it’s just that 2 fit my schedule and goals more than the others.)

I recommend house hacking do you are on the right path.

@Puja Shah The previous two people answered perfectly. I just wanted to say welcome to BP from another Twin Cities real estate investor.

@Sammie J. Bell The tax assessed value does not mean much in determining what the property should sell for. However, one thing to be aware of is that there are areas where your sales price will change the assessed value. So if you buy this for $150k then the taxing authority might say “it sold for $150k so that’s the value” and all of a sudden you’re paying 3 times as much in taxes when the assessed value changes from $45k to $150k.

I’m oversimplifying, but I just wanted you to be aware of that possibility if it changes your numbers.