House hacking has long been one of the most popular ways for new investors to get started in the Twin Cities.

It feels like time and time again, the biggest challenge in the BRRRR strategy is finding a reliable, consistent General Contractor to do the rehab jobs.

Great topic — ground-up projects can produce strong margins, but execution risk is where many investors get caught off guard.From the builder/developer side, the biggest challenges we consistently see are:1️⃣ Site Work UnknownsFill, compaction, drainage, and soil conditions can shift budgets quickly — especially in markets where lot conditions vary significantly.2️⃣ Utilities & Impact FeesWater/sewer access, well/septic requirements, and local impact fees are often underestimated during underwriting.3️⃣ Environmental FactorsProtected species, wetlands, and flood elevation requirements can affect both timelines and build costs.4️⃣ Permit TimelinesApproval periods — particularly when civil or environmental reviews are involved — can extend holding costs beyond initial projections.5️⃣ Builder Execution CapacityProject success often comes down to the operator’s systems, trade relationships, and cycle times — not just the numbers on paper.Because of these hurdles, we’re seeing more investors lean toward ready-to-build projects — where feasibility, plans, and permitting are already in progress or completed — as a way to reduce entitlement risk and shorten timelines.Ground-up can be extremely rewarding, but the upfront diligence and execution planning are what ultimately determine outcomes.Always happy to compare notes with other investors and builders working through similar projects.

Many residential real estate investors eventually look to transition into multifamily or commercial real estate, but the process can feel like a major step forward with a new set of challenges.In conversations I’ve had with investors, the most common obstacles often seem to be:Learning how to raise capital for larger transactionsConnecting with experienced investment partnersGaining access to stronger and more consistent deal flowFor those who have already made the transition, what was the single biggest challenge you faced when moving from residential into commercial investing?

Over the next year or two we’ll be focused on paying down debt and rebuilding our down payment/safety net, and I’d like to use that period to seriously educate myself on personal finance and real estate.My main challenge is the sheer volume of information.

And before you commit to any kind of website like Apartments.com who promise the world, ask to see their analytics for the area and ask yourself if that lines up with what people are telling you about where they found housing.I've noticed that larger cities tend to lean more towards online advertising and cutting through the many inquiries can be a challenge.

That said, not every operator or manager is set up to handle them well.For first-time investors, especially those planning to self-manage, short-term rentals can be challenging.

You’re ALWAYS better off investing locally, where it’s easier to:Learn the marketNetwork to find dealsNetwork to find contractorsBe more hands-onDriveby property to keep tabs on itNetwork to find a decent Property Management Company (PMC)Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!

These are the small practical challenges that I find making prop mgmt really difficult for us to operationalize.

Open floor plans are modern and popular making them a no-brainer for my STRs.