All Forum Posts by: Eric Beise

From everything I have seen, $50-100 per space is the market rate. For your situation I would start with $150 in negotiations and be willing to compromise down to the top end of market rate.

As multiple people have mentioned parking can be a big thing in the city, but at he end of the day you have to ask the question is it a deal breaker? My guess would be no. Press hard in negotiations, but know if you are actually willing to let the deal fall through over it. 

There are two main things I would think about having that many comparables around. 

1. It should be easy for you to get an idea of market rent and should make you more confident in your numbers. If you are worried about competition, it probably means whatever you plan on charging is above market rent. 

2. Similar to what Brett said, the vibe of the area will likely be different than that of somewhere with only SFHs. Know what that means for who you will likely be applying and make sure you're ok with it. Overall though, I wouldn't be overly worried, especially if you are planning to add value over time. People notice which properties are well maintained and which aren't. 

From my research they are a lease to own company, so my understanding is they are going to find someone to lease out the property with the intent on buying it, therefore their buyer will start as a renter. A few questions I would ask are:

1. Who is holding the deed? As in, are you selling to the company or are they facilitating your purchase to the renter/buyer?

2. When exactly do you get the proceeds of the sale?

3. Is it going to be more or less than market value + holding costs?

4. What requirements are they expecting from you and how can you terminate the contract? Is there a cost associated with that?

That should give you a nice start for questions to ask, if you haven't already. 

@Josh Dubin I love the enthusiasm and willingness to put yourself out there! Without a ton of knowledge and experience, its your enthusiasm and hustle that will make you a valuable partner! With that said, I would steer away from a flip as your first purchase. There are so many moving parts to doing a flip well, that you would likely miss on some aspect of it as a new investor, and end up draining your resources. That's not to say that it can't be done, but I would strongly suggest finding a partner to do it with that has some experience. 

My guess would be that the house hacking situation @Aaron Christen is describing would be best. 

I would strongly suggest last week's podcast with Scott Trench, in additional to all the others there. Also, if you haven't went through all the beginners guide videos do that! There is so much base level knowledge in there it will blow your socks off.

@Bianca G. If you are just buying a property (not selling), find a Realtor who understands your goals and is exceptional at explaining each step of the process. You really shouldn't have to ask many questions, what you really want to do is assess the questions they ask you. They should ask you about your life stage, what your goals for the property are, how long you want to hold it for, how it fits into the rest of your portfolio, etc.

In summary, find someone that shows genuine interest in you as a person. Find someone you trust. 

Ty it's great you are already thinking about this! getting my first rental property was one of the best choices I have ever made. It lead me into real estate full time as an agent. If you are in the MSP/STP area and want to meet up or if you have any questions about the market, let me know!

I leased out a townhouse last month in Otsego. It generated a ton of interest and I was able to get a really good quality tenant into it in under two weeks. From what I can tell you can get all the way up to Elk River and still have solid rental interest while having more affordable options. Stick to properties close to main roads and the light rail line that goes out that direction, and I bet you will have good luck finding solid renters. 

It's awesome to hear that you are actively moving on a property! So many people just sit back and never get going. With that said, I agree that there are better deals on paper and a good realtor should be able to help you find them. I have consistently found you can meet the 1% rule in the areas surrounding the twin cities, so don't settle for less. Cash flow is king, and you are likely not building wealth very quickly without it. 

There is a little pocket in the Harrison neighborhood that I really like. Its about 8 blocks large. If you can find a property in that area it will likely be a steal. Like everyone else is saying, it really is block by block. Do your research. Drive the area a few times at various points throughout the day. Trust your gut.

@Jesse E. From the looks of it, you have lot of good advice on here to think over. A couple of additions:

1. If you are willing to owner-occupy a multi with 4 or fewer units (which it sounds like you are), there are a few different mortgage options that would allow you to put only 5% down. I don't know the ins and outs of them specifically, but feel free to look into the standard FHA loan as well as a Home Possible loan. I can put you in contact with a trusted mortgage broker I know who works with people in your position regularly, and he would be able to answer any of your more specific questions.

2. @Amber Gonion is right. The best first step is talking with a mortgage broker or bank. They are the ones that will help you figure out what is really possible given your income/savings/debt/etc.

3. There are a decent amount of residential multi's in the Minneapolis/St. Paul market right now. Pending on your specific goals and qualifications there is likely a deal to be had, it's just about taking everything little step by little step until you realize how far you've come.