All Forum Posts by: Jeremy Muehlbauer

 Julio, we close on it tomorrow.  Thanks Julio, greatly appreciated.

So, we are looking at purchasing a triplex. We would ideally transition at least 1 of them over to a STR. My question is when it comes to the cost segregation study and how you can use the bonus depreciation against your W2 income with the short term loop hole. When they do the cost segregation study if only 1 of 3 of the units is being used as a STR and we are self managing the unit are we only able to write off the bonus depreciation from the 1 STR unit off against our W2 income or can we write off the entire amount of the buildings cost segregation? Any info on this would help, thanks.

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@wendyman thanks,  greatly appreciate the info. 

I was just wondering if there's anyone in this group that is currently investing in the North Minneapolis area.  As we all know North Minneapolis is not known to be very nice. But I have noticed that there is demand for many people to use their Section 8 vouchers.  If there is anyone investing in North Minneapolis do you believe that you could get full fair market rent in that area with a fairly nice property or is it not worth the hassle of having the rough area and tenants.  Any and all advice would be greatly appreciated thank you

I agree the brrrr method is great. I have yet to use it personally and am regretting not really digging in and learning about the brrrr method before i purchased my first investment. My wife and I used a HELOC from our primary for the down payment on our first rental. First I believe we over paid by 15% at the time. Second the property was in decent shape with no real big improvements needed. The duplex had current long term under market rate tenants. It has taken 2 years for us to start cash flowing really well on it and are about a year away from paying back our HELOC. So, basically 2.5 to 3 years and very little progress we to expanding our portfolio due to the fact that we maxed our capital options by not being able to refinance out our initial capital. Never again will i make this mistake. The next property will be bought at 75%ARV or close to it. Just thought I'd let people know that mistakes can be and are made but I definitely learned from it.

I have an off market opportunity to purchase a 5 plex in one of the best cities in Minnesota (edina).  I'd like comments on whether or not people think this is a good buy.   Here's the numbers. 

4 units are 2 bed 1 bath

1 unit 1/1

some units fully updated some not

-purchase price 1.2 mil

-20% down

-seller financing @ 6% balloon after 4 years

-12000 for taxes

-3600/year for insurance 

current rents  are low at 1600x4= 6400

and 1000 for the 1/1. Total current rents are 7400/mo.

On my spreadsheet I use if rents increased to a total of 8500 with 5% vacancy/Capex/ repairs/lawn and self property mgmt technically I show a -450/mo but I'm wondering if the fact that the area is so good and appreciation in the area is almost guaranteed is it still worth it? Any comments or suggestions welcome. Thanks, Jeremy.