Best Areas in the Twin Cities, MN?

Question

Hey BP Family,

Brand new to this Forum!

I have noticed how helpful and high spirited everyone is here so I test the waters with a two questions.

I am Australian and planning to move to the Twin Cities and Marry my partner (who's from Minnesota) early 2021. I have visited the state a few times but never lived there. I have a background in Trades and money saved up, so looking forward to starting in REI. So lets try:

1) If you know or work in the area of Twin Cities, MN, Any advice of areas to look into and build my Niche around them?

2) For others, How to narrow down a whole city worth of Suburbs to a small Niche to focus on, if you have never lived there?

Any Help or even a Hello would be super appreciated :)

Noah Chappell · Answer

@Michael Lilburn to chime in once more, I do think the Twin Cities is a great market for a balance btw cash flow & appreciation, if your outlook is long term. Employment is incredibly diverse with multiple Fortune 500 companies, and it's got one of the nation's lowest vacancy rates, in addition to a recognized shortage of affordable housing & strong city incentives for section 8 rentals. I'd prefer to invest here knowing the strong long term outlook of the market as opposed to a smaller town depending upon 1 employer. Another bonus for MN I was reflecting on recent, no natural disasters, like hurricanes, tornadoes, earth quakes, floods, etc, & Hennepin County has had extremely stable prices for a regionally expensive market as compared to the costal markets, Denver, etc.

James Hamling · Answer

@Michael Lilburn Howzit. With the factors at play we are in a double pivot market at this exact moment (covid & BLM/Protests). With that even if we could say with absolute certainty _______ is "THE" best thing to do in MN, that information is certain to be outdated tomorrow and no longer correct.

We need to see how remote working is going to flesh out in impact of where people want to live, where employers want to locate and any new paradigms that establish. There is the stress test to cities operational finances and the response in property tax rates, that could change everything very fast if metro areas start applying significant tax rates as is all but certain to come given what's happening in commercial RE space.

Daniel Anshus · Answer

@Michael Lilburn Welcome to BP and Minnesota! What part of Aus are you from? I absolutely love the country and am jealous you get to call it home! I have only been there once but have dreamed of going back ever since.

To better answer your questions I would have to get to know you better. Do you like foods from all over the world, do you like breweries and distilleries, do you like rural  or urban core living, do you like hiking or water activities? So many different things go into deciding where to live/ invest. I  would recommend leaning on your partner to help you know the area better, and if possible maybe live with their family for a  bit while you get your bearings.

If you want to  chat further and get more in depth answers feel free to message me. I would love to help out and maybe even chat about aus with ya!

Amber Gonion · Answer

@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.

Adam Tafel · Answer

@Michael Lilburn - welcome to BP! You're likely to get a different response from anyone you ask, as there are investors having success in any market at any time. There are also plenty of buyers making uneducated decisions... I personally like centrally-located B-class properties, close to downtowns/hospitals/colleges/etc. In my opinion the best investment property is one you can drive to in under 10 minutes. I am not looking to fight rush hour 5 times a week when I have a vacancy, my time is a priority to me.

Get into town and explore the city. Network with other investors, friends, family members. Connect with a good agent and lender, and figure out your purchasing power and goals. It won't take long before you'll be closing on your first deal.

Brian Kale · Answer

@Michael Lilburn

I would stay out of the cities of Minneapolis and St Paul.  They are not landlord friendly.  I like the southwest suburbs.  The new Amazon facility in Shakopee has created a strong demand for rentals.

David Barnett · Answer

I agree with you on the Minneapolis and St. Paul renter protections that were recently put into place.  I had invested in both Minneapolis and St. Paul and have pumped the breaks on any additional purchases.  It's unfortunate that these cities chose to go that route, and I think that this is going to hurt the people that they are trying to benefit (cue the unintended consequences of the ordinances - including raising rent prices to factor in risk and pricing out more affordable rental options).

Michael Lilburn · Answer

Thank you everyone for responding. It's given me alot to go off. Unfortunately not being in the country..yet. I am just in the massive education and knowledge stage so I can hit the ground running day one. So this is all super insightful. Please feel free to reach out if you have any advice or wisdom on things i should look into or consider.

Noah Chappell · Answer

@Michael Lilburn welcome! I bought my first duplex in St Paul sight unseen & without having visited or having much knowledge of the area, & although I wouldn't necessary advocate that it's worked well so far. What I did is look up prominent business corridors & routes of public transportation, then identified prominent employers such as hospitals, etc, then lastly brought out the good ol' trulia crime map. I felt comfortable making offers on properties properties that were strong by all these indicators, which met my ROI requirements. If you have more time, probably best to do the aforementioned, but also throughly walk the neighborhood to get a feel for the intangibles. If everything checks out, mostly likely you can feel confident proceeding.

Best Areas in the Twin Cities, MN?

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