All Forum Posts by: Amber Gonion

@Parker D. If this is your first property then walk away, if you have a few years with others then maybe you want to take the risk.

Just the potential tax increases are scary for mpls along with the other potential regulations.

The North side was affected by the riots, but they kept it to minimum (early they picked the areas to protect and areas to clear out of, southeast they cleared out of, downtown and north they held the line)

Management in a class D neighborhood is much more difficult and is a steeper learning curve. I have managed in these areas and while you may be at a 1% rule expenses for maintenance, pest control, evictions, vandalism etc tend to knock the shine off them. Still profitable but these things tend to drive down cashflow. Some will get lucky for a while, but as regional manager with over 800 units years ago I can tell you the averages will catch up unless you are on top of you game.

@Luis Arellano we charge $40/mo for dogs $30/mo for cats. $500 deposit $150 of which is non-refundable. We allow pets to avoid tenants going online to get a esa letter and then not getting rent or deposit.

We have about 30 units in mpls and saw this happening. Our fiduciary duty is to our clients so we really didn’t want to share the information we knew was going on for the last 6 month on a public forum. This is where having an agent with their pulse on not only the sales market but also the rental market to anticipate future trends and save you from paying too much or making a mistake.

We tell most of our clients that if you see a trend on BP about a hot area you are already too late.

@Elizabeth Ashantiva we have a lot of properties in mpls and the rents in parts a mpls are dropping quickly. They may come back in 6 months but right now the demand is lower than we have ever seen before. We would recommend that you have the following

1. Good pics especially of the kitchen, front, and bath

2. Provide 360 photos on Zillow so you don’t waste your time showing to someone that will not be interested

3. Offer short term lease or month to month and renew in June for a one year or longer lease in order to fill for now.

If you drop your price extremely low and renew at a higher rate next June you will have income and a better opportunity to fill it at better rate. Temporary lowering your rent does not affect your ability to raise them later.

Empty units provide no income and you are paying utilities, just be sure to hold your rental criteria high.

@Stephen Rowe we use titlesmart Amy Bakke. She consistently communicates well and is very good at what she does. Pm me for her contact info.

@Tim Swierczek @Max Tedford. Thank you for the kind referrals.  

@Michael Lilburn congratulations. To answer your question there is no best place, that would take an in depth discussion about yourself and your fiancé, where you work, comfort levels with crime, return rate, and age of property. Your experience with rehabs would also factor into the profitability of your purchase. We help investors purchase literally in every neighborhood and suburb because everyone is different.

Getting a general idea of what areas is great, but an in-depth discussion with your realtor should be guiding you along with the market.

@Frank Hinck I don’t believe the evictions will have much effect, but Certain parts of Minneapolis are certainly are seeing renters leave and rental prices are being affected which of course affect property value.

The major engines driving it are safety concerns and restaurants/service industry not at full capacity.

Many of the young renters work in the service industry and the unemployment kept them paying their bills (and more). But as they see that ending they have begun giving notice to move out of popular maps areas to less expensive areas like moms house.

It is not all of Minneapolis and not all of the twin cities, but just certain parts. The evictions occurring all at once will have a temporary blip in the vacancy rate, but should not be a long term effect. In general there are not any more people that need to evicted, those that need to be evicted are the same as before we will just see all of them at the same time. We have already seen the responsible renters voluntarily leaving.

@Mike Pastoor truly impossible to determine value without knowing fair market value of the rents. Without knowing the the city, where within the city, the condition of the property, among other factors it is impossible to give you a true value. You are correct to assume that the tax value generally is lagging behind, but by how much is just a shot in the dark.

We are seeing our listings selling in the same time with similar valuations of the past year, we have just noticed that it is fewer buyers bidding if they make it to the MLS.

It is still a good time to sell a property as values are being maintained by low interest rates and light inventory. Fewer buyers, less inventory, low interest rates, low vacancy rates = good prices.

More of the same another 30 days with these exceptions for your Minnesota properties.

Significantly damages property.

A 7-day written notice to the tenant is required prior to moving forward with an eviction for any of these reasons.

In addition, starting August 4, 2020, landlords will also be able to execute writs for judgments obtained before March 20, 2020.