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All Forum Posts by: Joseph Lee

Joseph Lee has started 10 posts and replied 60 times.

Post: Looking for a CPA in Minneapolis area that specializes in RE

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

I'll echo @Jordan Moorhead- had a great experience with George and will definitely use him again moving forward. 

Post: Minneapolis Plumbing Question- Min Drain Size

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

This is a pretty specific question, but can someone tell me the minimum drain size required for a kitchen sink in Minneapolis? We're renovating a kitchen and had one plumber tell us 2.0", while my code research (section 420.3) tells me it's 1.5". 

Our drain is currently 1.5", and I don't want to have to tear into the wall if it's not necessary and I don't want to have any surprises me it comes to the final inspection for our building permit. I also have trouble internallizing pulling a permit and hiring out the work for a simple sink hookup. 

Also, if anyone has any plumber recommendations  in the area, I'd appreciate them. Thanks!

Post: Minneapolis, Minnesota Remodel

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

Hey @Eli Sunderland- your best resource is the City of Minneapolis website and their page on permits. Just google something like "construction permits in Minneapolis" and it will get you to the right place. 

Big picture is that you have to pull a permit for most everything on top of painting or other cometic things like replacing cabinets or changing flooring. If you tear into a wall, you will need a permit. If you want to install a new outlet, you will need a permit. If you want to add a dishwasher and hook that up to your plumbing, you will need a permit. You get the idea. 

As the homeowner, you can pull your old building permits (drywalling, framing, etc.) and do your own work. That's the one positive. You cannot pull your own plumbing or electrical permits, though. I can't remember the exact reason, but I believe it's because it's a multi-family unit, even though you live in it. Those must be pulled by someone licensed in Minneapolis, which is apparently more strict than being licensed by the state. Legally speaking, about the only electrical work you can do without a permit is swapping outlets and fixtures. The only plumbing work you can do without a permit is add an ice maker in your fridge and some other ridiculous exception, along with minor repairs like unclogging. Technically speaking, you can't even change a fixture in your bathroom without a permit by the letter of the city statutes.

I'll stay off my soapbox, but if you think this sounds a little ridiculous, I'm with you.

If anyone needs to correct me, please do, but this is what I've learned from reading their online materials, city codes, and talking with inspectors.

Good luck with the re-hab!

Post: Twin Cities Quartz Countertop Vendors

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

Does anyone have any recommendations for low-priced Quartz vendors in the Minneapolis/St. Paul metro or even just outside it?

I've checked out the usual suspects- HD, Lowes, IKEA- and have also gotten a handful of quotes from smaller shops. The best value I've found is at Gendeco Granite in South Mpls on some Hanstone. 

Wondering if anyone knows of any other small shops that are really competitive on cost. 

Post: Thoughts on Doug Clark Real Estate Training

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

Hey @Austin Pilarski-

This thread only popped up in my email because I have Minneapolis as a keyword. Nonetheless, I'd take a step back and think about what else you could do with $30k. Although the market here is very competitive, you could still get into a nice duplex that you owner-occupy and use that money as the downpayment (assuming you would qualify for a first-time home buyer financing program). 

My wife and I have found out through our first deal that the best way to learn is to take a chance and actually do something, aka buy a property. You still have to be careful and not make a stupid purchase where you're going to lose money on it, but your first deal doesn't have to make you much money at all for it to be the best deal you'll ever do. The idea is to get out there and do it. 

You may be able to learn a ton from this guy, but just beware of the opportunity cost. And get some references that have taken the class that you can actually talk to. 

Good luck with whatever you choose to do!

Post: Owner Occupied Duplex or House Hack [First Time Investor]

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

Hey @Sam Stoffels, my wife and I just purchased a duplex that we are owner-occupying in Southeast Minneapolis in December and know the struggle of finding a duplex where the numbers work. I still thinking owner-occupying a 2-4 plex is a great way to get into the game if you can find one where the numbers work. BTW, I think you're 100% on the right track by analyzing them for when you're renting out all units and not living there, since that is the long-term goal. 

My advice is to be persistent, keep researching and doing showings of properties (or start if you haven't), and look for areas where you can add value that others may have missed (add a BR in that poorly-laid out basement, have tenants pay for utilities where the landlord was covering for them before, etc.) which may justify you putting in a higher offer than those other 5 people who didn't see that potential. 

Also, as others have mentioned, you shouldn't need to put 20% down, as FHA is always an option. Unless things have changed in the new year, there are also some 5% down traditional mortgage programs where you won't have to deal with FHA requirements.

As a newbie, I'd recommend finding an agent and a lender/broker. Even if you don't end up using them, you can get hooked up with an MLS search, learn about the market, and learn about the financing options that are readily available for you. I can recommend both our agent and lender if you're interested. Just shoot me a message.

Good luck!

Post: Holdover Tenant- Move Out Requirements

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

A little late with my response, but thank you for your response, @Kim Meredith Hampton

What you said is essentially what I was thinking- wanted to make sure I wasn't out in left field and leaving us vulnerable to getting shorted in the situation.

Post: Holdover Tenant- Move Out Requirements

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

Hey everyone,

My wife and I bought a duplex that had a holdover tenant on a month-to-month lease in one unit. She's given us proper notice to vacate and will be moving out at the end of Feb. How would you recommend handling the move-out inspection and return of her deposit? In terms of the condition of the unit, it seems as though we can only hold her to the condition it was in when we purchased the property (which was a month ago), not necessarily the condition that the unit was in 20 years ago when she moved in less normal wear and tear. Would you agree with that? Can we still communicate that we expect the unit to be cleaned to a 'rent-ready' condition in order for her to get her complete deposit back? Are there any other departures from a standard move out procedure and inspection process that you would recommend?

Post: Prospective Tenant Showed Up Under the Influence

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

@John Woodrich- thanks for the recommendation. I'll take a look at that class. We're taking the one put on by the city of Minneapolis in a couple of weeks. We plan to abide by fair housing for our duplex even thought it's not required as you mentioned. It'll be good practice for when it's strictly a rental and we no longer live there.

@Deanna McCormick- yes, it's allowed according to our lease and the details have been talked about at length with our landlord. What you recommend is very close to how we're doing it. Maybe I'm being dense here, but one question on your last statement- doesn't giving no reason at all allow them more room to file a discrimination claim? For example, if the tenant is a racial minority and they're not told why they were denied (even if it was for something like a past eviction), wouldn't they have more room to claim discrimination because they believe the denial was due to their race/color rather than if you just told them up front that they were being denied for that past eviction? Again, I'm new to this and simply trying to learn, but that's where my train of thought takes me.

Post: Low-Cost Kitchen Cabinets

Joseph LeePosted
  • Rental Property Investor
  • Minneapolis, MN
  • Posts 60
  • Votes 30

@Scott S.- thanks for the thoughts. I took a second look at Home Depot after your reply. You wouldn't know from checking out the display kitchens in the store that they do have some reasonably priced options as well. I'll take a look at the other ones you guys mentioned as well!

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