Advice in Minneapolis, MN market..?

[Mario Russo]

Hello BP,

My wife and I live in Minneapolis and have been looking at purchasing our first investment property in and around the West Minneapolis area as we currently live here and these are the areas we're most familiar with. (Minnetonka, Plymouth, Wayzata areas). Our strategy is long term buy and hold, we even like the BRRR method and would be open to fixing up a property. Eventually we'd like to acquire 5-10 rental units to provide some passive income for us in retirement.

The market in Minneapolis is very strong. We are noticing that there aren't a great deal of multi-famly units available in these areas. We are seeing a lot of townhomes on the market but these don't seem to yield the best ROI and cap rate for after running a few numbers on them.

Does anyone have experience with rentals in the Minneapolis area? Whether that be a multi-family unit, townhome, house, etc... Would you be willing to share more about your experience in this market? What would your advice be for a young couple looking to acquire their first rental property?

Thank you!

Mario