Affordable areas near Minneapolis?

Question

Hello BP community, I'm a real estate investor from Indiana moving to the Minneapolis area soon. I've started my research but wondered if I could save time by finding a realtor familiar with the area. I'm in the market for a value add property in an area of Minneapolis that has a reasonable entry price. My 2 sons play hockey and lacrosse and are of High School age. For that reason we would live to find an area where they can attend a decent High School. Areas of Blaine, Spring Lake Park, St. Paul, White Bear Lake all seem to have around upper $200s to mid $300s as an average home sale price. Any other areas you would recommend?

How is the Minneapolis market right now? Has it started to cool off? I'm seeing properties purchased a few months ago relisted for $100k more with seemingly no work done to them. Seems crazy. This market is propbably a bit more competitive than my market just outside of Chicago.

Thank you,

Brian

How is the Minneapolis market right now?  Has it started to cool off?  I'm seeing properties purchased a few months ago relisted for $100k more with seemingly no work done to them.  Seems crazy.  This market is propbably a bit more competitive than my market just outside of Chicago.

Thank you,

Brian

James Hamling · Answer

@Brian LaLonde As a recently former "Hockey Dad" and FT REI Professional, immediately the stand-out location is STMA (Saint Michael, Albertville).

In my son's last year it was AMAZING! He was traveling team, on way under-rated team and we nearly took state. It was a real under-dog story. When we went to there Hockey facilities we all dropped our jaws, it was like that Rocky were were training out of some old shack and throwing log's and these kid's got this darn near Olympic type facility with everything imaginable, so much envy. And yeah, they are really good, with strong Hockey culture in general.

As for REI potential in the area, you name it it's happening. Minneapolis is NOT the center of REI in Twin Cities, not even close, it's all about the suburbs. And the West Metro and NW is arguably the "Crown Jewel" of where everything is happening.

And if Hockey is really front center, there's always Hutchinson, but I am certain they feed those kids a diet of steroids and small children because there freakin beasts, some of those bantams had full beards I swear, lol. Bunch of 6'6" farm-kids with dinner plate hands, body checking everyone into oblivion.

And from the STMA area you can easily access any area really, including Central MN which has the 3rd largest metro-plex in the state where I don't want to give away my secret sauce but most recent purchase analysis as of last night was a 18.6% COC and 28.9% COC. Vacancy rates sub 3% with appreciation projections holding strong at 10%+.

Scott Danielson · Answer

@Brian LaLonde You and your boys will love it here!! You can't go wrong in either Minneapolis or Saint Paul areas, that's why we call them the Twin Cities ;). The Minneapolis suburbs are great, Our broker Tom Fleetham and his sister Jennifer Lindgren have only lived in Minneapolis and are very familiar with the surrounding cities like Saint Louis Park, New Hope, Golden Valley, Plymouth, Hopkins, and Bloomington. I've grown up and live in Eagan, MN -  Southeast suburbs of Saint Paul surrounded by cities like Apply valley, Burnsville, Rosemount, Inver Grove Heights, and Mendota Heights. Great area, great schools, and 20-30 minutes to anywhere in the cities. Would love to connect with you and show you around the Twin Cities!

Brian LaLonde · Answer

Great! Thank you for the reply. I'll be reaching out soon.

Alyssa Strom · Answer

@Brian LaLonde Welcome! I live in White Bear Lake and really enjoy it. It was a town before it was a suburb so it still has a small town vibe. Lived in St. Paul the past five years also so happy to share experiences on both. Market is stabilizing (and cooling in some cases) but homes under the mid $300's are generally competitive since that is the median purchase price in the Twin Cities. Right now many sellers are just hoping to capture the tail end of a market where everything would sell for a high price and have multiple offers. Days on market is increasing and you're starting to see price reductions again so actually a decent time to be a buyer again.

Jeff Schemmel · Answer

From my perspective, I'm seeing a bit more buyer leverage than previous, but the nicer quality properties still go quick in multiples.  Inventory is still very low here and for that reason most listings are competitive.

Regarding area, it's hard to speculate without discussing more of your goals and where you're at in your investing.  I work with out of state buyers and one thing that I always get good feedback on is my neighborhood and property video tours.  If you want to chat more about that just give me a shout!  Happy to help provide any local connections and help you get acquaintanted in a way that suits your goals.

Grigoriy Gorshteyn · Answer

Would love to connect!!

Affordable areas near Minneapolis?

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