All Forum Posts by: Luke Jackson

Hey Everyone,

I'm looking at a 8 unit apartment in the Fargo/Moorhead market and have some questions as I've never invested in this area. If any of you are active investors in the area I'd love to talk with you! Thank you.

Luke Jackson

As far as the meetups in Alexandria go, we did have a small BP group that was going out for coffee once and a while. We haven't met up in a while though.

Hey Lucas, Alexandria is a great place to own a VRBO, although the market is slightly saturated with them right now. We manage some and own a business that does all of the cleaning and maintenance on a bunch more. Reach out when your ready to move forward and I can share what I know. 

I own two VRBOs in Northern MN and absolutely love the fact that I get to stay at them when they're not booked. 

Luke Jackson

Hey Quenten,

Awesome job furthering your knowledge and entering the real estate game to create wealth. I bought my first property at 19 and now six years later I have 13 doors. 

First off, do everything in your power to raise your income as for now that will be the best wealth generator for you. I love the fact that you want to live in the smaller unit, great mindset.

I'd suggest finding a great agent and scheduling a showing. It will give you the chance to gain some wisdom from them and get in the game. Look at a few houses on the market and study the different foundations, quality of build, etc. Find a quality lender to sit down and talk with to look at your loan options. 

We can't really analyze the deal for you because of the limited information. If you have any questions shoot me a message or give me a call, I'd love to share what I did starting out. 

Luke Jackson

You will need more numbers such as financing, monthly repairs, property management, insurance, taxes, etc. before you can fully analyze it. 

Hey guys,

Here are the details on my latest duplex. Previous owner spent $60k last year on windows, siding, roof, and HVAC. Very clean house. Each unit is 2 bed, 1 bath. Retail value is $170k in my market. 

Purchase Price: $160,000, $0 Down

Terms: Owner financed, 5% interest, 15 year amortization

Income

Rent: 2 x $850

Monthly Expenses:

Lawn Care: $100

Taxes: $100

Insurance: $85

Maintenance: $150

Morgage: $1265

Vacancy: $100

Total: $1800

The deal looses $100 per month before factoring property management costs. I self manage and do the maintenance on all of my units so the costs will probably be lower than stated above. 

Would you have purchased it?

Terrell, that is exactly what I am thinking about for my one year old daughter. I'll keep rehabbing and holding houses for faster wealth creation, but thought that this may be good stable avenue for the extremely longterm outlook.

Hey Everyone,

Does anyone on here invest in land strictly for timber production? I have a couple VRBOs and a hunting cabin in Northern Minnesota and am wondering if this would be a good passive income stream for an extremely long term (generations) buy and hold investment.

You can buy red pine stands (10-40 years old) for $1200-$1500 per acre. Very similar to what Potlatch does, although some loggers have told me they are hurting financial. Overall the current economics of it sucks and land values have declined, which may make it a good time to enter.

I understand that it would be capital intensive and it would not be a get rich quick scheme; but for me it would be very enjoyable being a miniature timber baron so to speak. I could lease out the land for hunting to cover taxes and misc. expenses. I think that to make it feasible you would have to have very little debt. 

Thanks,

Luke Jackson

Hey Andrew,

I don't see the tenant vacating as a bad thing. It gives you the chance to clean and fix the unit up which might allow you to get higher rent. I would not suggest having the current owner put a tenant in there as they may shove the first applicant in, qualified or not. I've always found it better to get my own tenants. 

Secondly, having the tenants do repairs and maintenance isn't always a good thing. I've had them do much more harm than good. Sometimes the tenant does them so that you don't enter the unit. I always prefer to have my maintenance man do the work, which at the same time gives you a second hand look at the condition of the unit. A walk through prior to closing is a must!

If your numbers work close on the deal. This Covid issue will pass soon enough. Exciting stuff, good luck!

If you are new to real estate with little experience and investing out of town I'd suggest hiring a property manager. Give me a call tomorrow if you'd like and we can talk about it.