All Forum Posts by: Paul Tischleder

@Ashley Keeler

I've done 4 BRRRR deals in the Minneapolis/St.Paul metro the last few years. I'm closing on a BRRRR duplex next week, and plan on adding 2-3 more in the next year. I used a hard money lender on the last project and was able to roll some of the rehab budget into the initial loan. I'm using the same lender on the duplex. My plan is to wait out the seasoning requirements and refinance them with conventional mortgages and continue to use my hard money lender to acquire more properties.

Good luck, the market is hot and properties are moving fast.  Having a hard money lender will give you an advantage with a cash purchase, and is certainly required for those properties that need a major rehab where traditional financing wont work.

Paul

Thanks for the advice.  I agree the costs to split would be likely not make sense.  Going to a flat fee sounds like the way to go.

The property has a perfect setup to create a second rental unit, with a separate driveway and entry.  It's currently all under 1 set of utilities, (gas boiler heat, electric, water, sewer, window AC units).  The city has approved its use as a duplex, so I'm good there. The property needs a medium rehab, so I'm planning redoing the kitchens and bathrooms, flooring, etc.  Does it make sense to go through the effort and cost to separate the utilities?  The boiler is old, but still works.  I realize it comes down to spending the extra money now, to make the property a better renal down the road.   Any advice on things to consider would be helpful.  The smaller unit would be a 1 bedroom 1 bath (450 sqft) and the larger unit will be a 3 bedroom 2 bath (1700 sqft).  Also do I need to create separate address, or just go with the Unit 1, Unit 2 approach?

Thanks

Paul

Hi Dominick,  I've got some rental properties in Shakopee.  I've not had any problems finding tenants, and the rents are pretty strong.  The city has been trying to bolster the downtown area with new business and such and I think it's helped, but most of the appreciation is happening in the newer areas.   There are plenty of decent hourly pay jobs in the area, which I'd imagine would be your target tenants.  I think you can have a nice cash flowing property in that area, but the long term appreciation probably isn't there. 

Part time investor currently focused on BRRRR properties. I currently have 3 SFH's in the SW MSP metro area and looking to grow that to 10-15 over the next several years.