All Forum Posts by: Mark Hong

@Riley Blake

Welcome to BP and Minneapolis. I am a new investor starting out in Minneapolis not long ago. Hopefully, the following statements are correct. More season investor please correct me if I am wrong.

SFH up to 4-plex would be valued base on comps. The value of the property that is 5 unit or above would be base on cap rate.

In smaller properties, people base their decision on Cash and Cash return. With that said, I still calculate Cap rate because so far I had only obtained traditional loans with a same down payment percent and haven't been very creative with terms. Therefore cap rate would give me a rough idea of my COC. Hence I still calculate it. If you are going to be creative with your financing and offer terms then I suggest you focus on cash on cash.

I have a tough time finding a property that would cash flow that fits my criteria on the market now. You will definitely benefit from networking with other investors to find quality/off-market deals. Many of the properties that cash flow are in class C or D area which I doubt you would be interested in living. Patience and Perseverance would help !!!

Please msg me if you have other question, I would be happy to help.

@Bruce Runn

Thx a lot for the tip Bruce ~~~ I will check in with the city. If I find something useful for other investors, I will post it here. 

@Tim Swierczek@John Woodrich

will call the city to check on it. Perhaps needs to request for a letter or some type of documentation for the approval as well. 

Thx alot for the advice !!

Hi All,

I came across a 5-plex that is zone as R5 and the seller is saying that there is a potential to add 1 additional unit making it into a 6 unit complex. I did some research on the official website about R5 zoning and didn't see anything that said I can't do it. I just want to see if anyone of you have experience in this. Is there any red flag? Anything I could be missing? Thx in advance.

@Tim Swierczek

Thx Tim, I will certainly give you a buzz when I visit Minneapolis !! 

Hi,

I am a newbie investor investing at Misp/St.Paul area from out of state [2hrs away]. It seems like all the meet up groups are held during the weekdays which I have trouble attending since I have a day job. Anyone know if there is any weekend meet up group? Thank you

@Travis Hibbard

Welcome to BP. 

I am just starting out to invest in Misp/St.Paul as well. The market is tight, it is probably hard to find deal that would fit the criteria for a full time investor. I also work full time and my goal is to generate some passive income on the side so I dont have to find that killer deal in order to buy. If your situation is the same, there are still properties out there for you to grab. Best of luck!!!

@Allen Lemay Welcome to BP. I am a newbie just starting my journal now. Its great to see fellow investor that share similar goals with the hope to purchase large commercial properties. Best of luck. 

@Tim Swierczek Will do thx!

@Tim Swierczek Thx alot for the tip. I am certainly looking to network with investor in Minneapolis. I live out of state but will definitely try to be there once or twice a month. I will certainly to happy to meet sometime when i am in town