All Forum Posts by: Corey Hawkinson

@Alamin Wahila Look up the Minneapolis rule on how many non related tenants you can have. I thought 3 was the max. I was recently told 4. The rules might be listed under boarding houses.

@James Elden yes, it is possible and a great, simple plan. I used a version of this as an easy way to get started. (I did not do this every year, much slower)

You don’t need to switch lenders. You’re doing everything correct so there’s nothing to hide. As you grow you might run into some issues with ratios, especially as those change at 4 properties and 6 properties, but you’ll cross that bridge when you get to it. For now, just get started on this plan.

@Patrick Flanagan I see Minneapolis on your list. Just curious, what makes you put that in your top 7?

@Diana Dorantes 2013 (I think) Hyundai Elantra for me. All paid off. It works for 95% of the real estate projects I have. For those thinking they “need” a truck to be a real estate investor, know that you can rent a truck for very cheap from Home Depot, Lowe’s, Menards, etc. That’s what I do for the 1-2 times every year that I use a truck.

Note: I’m not bashing people with a truck, but for people starting out you’re typically much better off financially with a car.

@Leah Tesch Thanks. At least someone appreciates my great ideas. 😂

@Rohit Kumar if you’re talking about more than 3 bedrooms you will want to research Minneapolis and St Paul rules. I haven’t looked in the last few years because my path has taken a different route but I know when I looked it was illegal unless you were specifically licensed as a sober house, charity or some other organization. Otherwise they did not allow rentals to more than 3 individuals who were not related.

You could possibly attach a quick adoption form to your lease where you adopt every tenant, thus making them all related. My wife rejected that idea though. One of my many amazing ideas that she has rejected.

@Avery Rustad I like that you’re thinking outside the box. Keep doing that. It’ll serve you well in life.

How would the financing work? You mention student loans for a down payment, let’s say for this example that you can make that happen. Where would the remaining money come from? Will a lender give a loan for the remaining amount knowing that the down payment is from a student loan and the borrower likely has no experience? Will the loan be guaranteed by the University? (and in turn the state taxpayers)

I actually think that finding veteran investors to “teach” the program would be the easy part. I don’t see how the financing and ownership structure would work. You mention insurance which will also need a lot of details because losses will occur on some properties. I would imagine that those pieces would need to be spelled out well to gain any traction on this thesis. I am local so feel free to reach out.

@Daniel Pearson This is just my opinion as a father. I know nothing on the legality... If you’re going to do this, only ask after accepting the family. I would hate to feel pressured into providing information about my child. I know you might mean this totally voluntary, but it won’t feel voluntary if you ask prior to accepting the applicants. As mentioned by someone else, be sure to be clear that you’re just doing this because you like to get a small birthday gift.

I don’t mean to be negative because it sounds great that you want to do this. I would personally feel strange if someone asked me about my child’s birthday.

@Seth Falcon Welcome from another twin city’s investor. House hacking is the best way to get started, but finding a good place at a good price can certainly be difficult. Keep networking. There are several quality groups in the area to join. I’m sure more events will be starting in the near future. Message me for a couple of those groups if you’re interested. We’re not supposed to comment about them here so that’s why I say to message me. Don’t worry, I have nothing to sell you and I’m not a leader of any group.

As far as mailings and texting, I agree with Dan. All of us with multi family properties are receiving these texts with “incredible” all cash offers of $215k for a 4-plex that rents for $6,800 per month in the metro. The response rate from those campaigns has to be pretty low because those are the types of offers we expect. That said, I have never done a campaign myself. Maybe you can prove me wrong. If anyone actually gets metro area properties (not North Minneapolis) under contract at the 3% rule when most of us struggle to find 1% properties then I will for sure join in the mailing/texting campaign strategy.

@Dylan Delancey We have student loans with no intention to pay them off early. For us, the return we are receiving from real estate investing is far greater than the interest rate on the loans. If that’s the same case for you, I would recommend investing. On top of that, the government continues to discuss student loan forgiveness. Although I do not support that plan, I will take advantage of it if offered to me.