All Forum Posts by: Tom Henderson

Thanks Steven.

Ideally, it would be awesome to have my properties all within 2 mile radius -- from a management and community marketing perspective... That is definitely a factor for looking at this one.

However, I'm just not certain there is enough 'fat on the bone' from this property to justify a $100,000 investment. That money may be better invested elsewhere.

Updated 2 Bed, 1 Bath in this part of Mpls-- should fetch between 999-1099 per month. 

Team,

I'm looking at an 8plex currently in Minneapolis... 4 x 2-beds, 4 x 1 beds... Below are some #'s. For a downpayment of $100,000, is this property worth it? It is in a very nice area, 3 blocks from where I owner-occupy my 4plex.

I would also have a monthly dividend payment to investor for $600. So there is not a town of cashflow from the current rental perspective. There is upside in this part of Mpls, and appreciation/tax advantages/mortgage pay-down will all be nice.

I am not putting a dime into this one-- I am splitting with an investor 50/50. He will cover downpayment.

Given these #'s, What would you do?

Price per Unit: $68,750.00

CAP Rate: 6.73%

Monthly rent: Purchase Price: 1.16%

50% Rule: 48.64%

NET OPERATING INCOME: $37,041.00

ANNUAL CASHFLOW: $8,241.00

Hello Team,

This week, I signed a PA for my 4th rental property in Minneapolis, MN. It is a disaster, but in a very solid area, so a play for both cashflow and equity. 

I'm currently outlining a plan for renovation... I'm torn between Granite or Concrete. Granite is probably classier, cleaner and will last longer. But my friend's Dad who is a Concrete Mason, has offered to assist if we choose Concrete. All he would take as payment is beer ;-)

So, I could renovate and add granite, or go with concrete in these 2 units, and another unit in my quad, all for $250 in materials. No labor. This instead of $3-4K for granite.

I'd be curious to hear what the board has to say-- what would you do?

Black granite

White Subway Tile with either gray grout for a brick look, or white grout and run a slim line of patterned-glass tile thru the middle.

That is my go-to ;-)

I bought my Uptown Duplex for much less... 126K.

Unfortunately, pickings are slim in that market today. My advice-- look around Hiawatha if you like South Minneapolis, that or Nokomis. Or, you can still keep looking in Uptown-- just look for that great location, but disgusting property you can fix up. You'll have first right to buy as an owner occupier.

I did use a realtor as well. 

Great feedback already. Thanks much guys.

One of my best friends drives an Outback.. I usually call him Captain planet as he is pretty passionate about environmental issues.

Curious what CRM platform folks on the site leverage for:

- Tenant Management

- Project management

- Inventory of your accredited investors

- Potential renter list

Hello Everyone!

I am looking for a new vehicle that I can use for construction projects, and also outdoor activities in Minnesota-- hunting, fishing, hauling kayaks..

For my business, I usually redo the unit once I buy it, and always find myself needing to carry more tools than my little car will allow!

I'm curious what you use?

- Econoline Van?

- SUV?

- Pickup? 

- Old School VW Van

- 1980's or 90's model Toyota Landcruiser

- Suburu Outback-- yes, lots of negative stereotypes, but such a practical vehicle ;-)

Tyler,

Welcome to the site!

I am a 2010 graduate from Saint John's University, purchased my first rental property in 2011 once I had enough money for the downpayment. It is a duplex in Uptown, Minneapolis, where I lived for 2 years.

I am now up to 3 Duplexes and 1 Quad. IMO, you have a competitive advantage if you get going sooner than later-- building your brand as the 'property guy' with your network, who will more than likely remain in the TC will set you up with a sustainable potential tenant base after graduation.

Tom