First Time Duplex Buyer

[Tyler Minkel]

Hey All,

I’m a Newbie to the BP world and looking to get started. I’m looking for some help on my first duplex purchase, basically looking for some direction. Ideally trying to find an agent/investor in the Minneapolis, MN area. If you guys have any suggestions or advice on agents and tips on the first purchase, I would love to here them. My plan is to house hack my first duplex and grow from there. Willing to put in the work towards financial freedom. Thanks in advance for any advice and help!

[Tammy Ziegler]

@Tyler Minkel - I recently bought my first local rental property which I'm self-managing. Here are a few things that really helped me: 

Work with a lender and buyer's agent who understand multi-family property in the area you are looking to buy in. I can recommend Ryan Luthi and Lauren Peterson at Fulton, Jordan Moorhead at Keller Williams and Alyssa Strom at Side by Side. @Tim Swierczek and Conor Hesch are great resources on the lending side and very generous dispensing solid advice. Nothing beats asking questions and getting advice from experienced people who have done it themselves. I believe the people I've mentioned are all active here on BP. They also put together local meet-ups to help educate and support multi-family investors in the cities. 

Get familiar with Home Line. They are a tenant advocate org which also provides some landlord training sessions on MN law and published a great book (see https://homelinemn.org/publications/landlordsguidetomnlaw/) written in plain language with pretty realistic advice. You can still sprinkle a little grain of salt on what they are saying, but the commentary about the law provided there is quite valuable as a new landlord. 

If you plan to own in Minneapolis check out the rental property owner's workshop (http://www.minneapolismn.gov/inspections/rental/rpow) provided by the city. I am going in June so I can't review it yet.

The MN AG office also has a handy publication (https://www.ag.state.mn.us/consumer/handbooks/lt/default.asp). 

You can think of being a landlord as essentially running a small business. No one else can make decisions about what you are willing to spend, what kind of return you require, what risks you are willing to take and how you mitigate them. You need to educate yourself about the local RE market, do your research on rent in order to run the numbers, and get comfortable with landlord law. Recognize that your situation as a prospective owner-occupied duplex buyer is different than others who are investors not "moving in" both on the financial and legal side. The market in Mpls is very competitive and highly time sensitive right now so being comfortable and 100% ready to move when the right property comes along is key. Good luck!