All Forum Posts by: Sherry O.
Sherry O. has started 2 posts and replied 11 times.
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Keith Fjelsted Thanks for the tips! The inspectors I know won't do any inspection without a purchase agreement. Also with a tenant occupied property I don't necessarily have the option to check out all the units in the initial visit. Maybe I can partner with a contractor and look at the property with him to get a better idea of potential breakdowns/fixes.
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Michael Schmalzer, I toured the property today and all seem good--HVAC are older but in workable condition, roof is fine, exterior and interior are both in good shape, previous owners have done a great job maintaining it. The NOI is actual numbers provided by the seller, it includes most of the things you mentioned. And I compared the numbers with the comp (expenses were listed on the original MLS), they are in the same ballpark.
I was pretty nervous initially, buying a four-plex as a first deal is absolutely beyond my wildest dreams, so much money involved, kind of crazy...but after analyzing all the numbers and seeing the house in person I feel I am making an informed decision and have less fear now.
Your idea of connecting with other owners is brilliant! I will definitely try that. Thank you for all your help! Really appreciate it.
There is quite a lot of useful information in this thread, thank you everyone who contributed your thoughts. I've learned a ton from your replies.
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Account Closed Thank you for sending the link! The house looks good, though it is in North Minneapolis, might be a bit risky. I used the classification very loosely. In my opinion, a safe neighborhood with working class family and median value homes (200k) is B. I'd probably need to do more research, but from my personal experience, NE Minneapolis is a very nice area, though not as top class as Edina or Plymouth.
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Account Closed Wow, 480k sounds like a great number! The property I am considering is further north, so rents are lower. What kind of updates can increase income potential? Do you mind sharing some examples?
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Jim Blackburn It will be investment with 20% down.
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
@Ryan Schroeder According to the seller, the property does not need any repairs upfront and all 4 units are occupied with long-term tenants. I will go and check out the property in person and see what condition it is. Given that it is more than 30-yr old, there will be big expenses down the road for furnace/AC/roof, etc. How do you usually factor these in?
@Account Closed
Post: Multifamily in NE Minneapolis Minnesota

- Saint Paul, MN
- Posts 11
- Votes 3
I am analyzing a potential deal in a B neighborhood. It is a 30-year old four-plex with the asking price of $415,000, NOI of $29,000, putting the property at 6.99% cap rate, cash on cash return is around 10%. There is a very similar four-plex in the same area that was just sold at $380,000 earlier this year. And it had some updates done before selling.
Because I am new to investing and kind of risk-averse, I am more leaning towards buying in a safer neighborhood and learn how to manage/maintain a rental before buying fixer-uppers that can create higher returns.
My feeling is the asking price is too high, if I can negotiate and get it down to $370,000, it would be a workable. Is it an OK deal? What should I look out for or consider before making a decision?
Post: Failed 1st Attempt on Short Sale

- Saint Paul, MN
- Posts 11
- Votes 3
@David Moore Thank you for the encouragement. Learning to invest in a hot market is surely a test to patience. I have friends who are seasoned investors told me right now is the wrong time to enter the market, but I want to keep trying for a longer time and see what happens.
Post: Failed 1st Attempt on Short Sale

- Saint Paul, MN
- Posts 11
- Votes 3
Thank you so much for the detailed explanation! It makes perfect sense now why it failed.
Post: Failed 1st Attempt on Short Sale

- Saint Paul, MN
- Posts 11
- Votes 3
Good points @Christopher Phillips @Jade S. It is definitely harder to negotiate with the bank on short sale. The bank simply rejected my first offer, did not even bother to counter.