Up and coming neighborhoods - Minnesota / MN

[David Huynh]

Hey guys,

Anyone feel and/or invest in Northeast? Anyone want to post some quick success stories on here about the Twin Cities? 

IE - for those of you who invested in Midway before the light rail went in,

For those of you who invested in NE Minneapolis. 

Etc...

I'd like to hear/see more thoughts on Minnesota/Minneapolis in general.

What are some neighborhoods that you think will elevate in price and continue to elevate?

[Dustin S.]

July, 2011 - I had moved back home with my dad while I finished a graduate degree and was employed at the same job I still hold today.

I had been maxing out my 401k at work and eventually realized that I didn't want to wait until my 60's to retire, so I began looking for real estate. Also, my dad was becoming anxious about his son being nearly 25 years old and still living at home, so he was going to begin charging me rent. I am cheap/frugal, and so figured that I could live rent free if I purchased a multifamily property and occupied one of the units.

I really didn't know what I was doing. On my birthday, I noticed a 4plex listing near Hamline University (just off Snelling Ave). My grandpa had told me that there was nothing good north of I-94 (implying higher crime). The building was a foreclosure and unoccupied. After walking through all the rooms, I kind of just stood around. The real estate agent asked, "So... do you want to put in an offer."

I offered $181,000 and the bank countered with $169,900 :) - The listing agent didn't believe that I should need to compete with the investors who were "clamoring" over the property. The bank really wanted an owner-occupant.

I listed the 3 non-occupied units at $720 / month and provided free WIFI and laundry. I have since removed the WIFI and have the following rent roll:

1: 775 (original occupant)
2: 975 (market rate)
3: 865 (long-term occupant)
4: 995 (market rate)

I did convert the flat roof to a pitched 5/12 (expensive!), repaired the stucco exterior, and put a bit of money into most of the units, but this purchase has been the best financial decision I've ever made.

I did a cash-out refinance, and could probably do it again within the next few years if real estate doesn't collapse. :)