All Forum Posts by: Chris D.

There is a bank owned house that is at $110K. It will need about $35K to fix (new siding, plumbing, kitchen, all interior paint, misc. repairs). It will also have to get financed through a 203K loan which means the siding and plumbing will have to be bid out. The rest I am planning on doing myself. I am planning on living there for 2 years or so and then either A.) renting B.) selling. Comparable homes are at about $165 in the area.

Assuming an after remodel cost of $145K and a 4.2% loan rate, is this a good investment? Also, what would this need to rent at in order to cash flow?

Thank you so much for the help!

I am around on the 28th...anyplace in Mpls or SP would work.

Hey Marco Santarelli, thank for the welcome! Right now, I'm 30 and single, however in the next few years that will likely change. Therefore, my strategy will change. My thoughts were to buy a property and either rent it or live in it for 2 years or so, and then sell it as I myself will likely be moving out of the area.

I understand (loosely) the larger capital gains, and therefore larger tax burden, with the fix/flip scenario. However, if i'm not mistaken, by living in a house for over a year, doesn't that decrease that tax rate?

Whether I keep it as a rental after two year would really depend on my financial state and if i could swing it.

Does it make sense for a first time buyer to buy a SFH, fix it up while living there, and then either A.) rent it out after a year or two or B.) sell for a profit? Would it be a better option to buy a duplex and do owner/occupied?

I realize both scenarios depend on the type of properties, cash flow analysis, etc. 10% Rule, 70% rule...

Also, i have about $50K in cash to invest if that changes things...

Thanks for the advice!

Brandon Turner - Thanks for links and the help. I'll review and get back with any questions!

Ned Carey - Do you have any 'creative methods' that you'd suggest implementing in order to find those better properties?

Hey everyone! Over the past couple weeks I've been reading a lot of the different articles on BP and...WOW! What great information!

I am a first time buyer and am looking to invest in an owner occupied duplex/triplex in the Minneapolis area. I am looking at the edges of the 'dodgy' areas where hopefully prices are a bit lower. I am in the process of trying to overlay this with projected growth and income rates so that when it comes to resale (2-5 years from now) the investment will be more profitable.

In an effort to get started, I made my own CAP Rate and mortgage models, but then saw one that another guy already did and 'stole' that as it was a bit more user friendly. Other posts from the Mpls area said its was quite hard to get 10% CR around here...any thoughts on that?

Also, as I am a newbie, I realize that I probably don't know what I don't know. Any help regarding financial analysis, best ways to search for properties, pitfalls to watch out for, common mistakes, areas to look, etc. would be extremely appreciated.

Thanks and I look forward to the conversations!!

Chris