Minneapolis Multifamily investing

[Adrienne Harrison]

I’m concerned about Minneapolis’s rent increase restrictions going into effect soon. I’m a new MF investor, trying to pick an area ( or areas) within 30-60 minutes from my St Louis Park home, to buy apartments 50 doors or less. Does anyone who knows this area, have advice for me? Probably b or c properties, in blue collar areas.

[Bruce Runn]

@Rebecca Sabot

Before you sound the alarm bells, the "rent stabilization" study isn't a draconian proposal like capping the amount of rent or making it so increases can't be put through.  They are talking 5-7% increase plus inflation.  If you are raising more than that, you probably have a serious issue.  It doesn't pertain to units you turn over but rather continually running tenants.  I don't think I've raised over that much ever as my rents and pretty much everyone else I know, has competitive rents.  The impetus is to prevent the use of rent increases to empty a building to be moved from a basic rental to a full reno where they upscale, double the rent to do a full renovation.