Minneapolis - Saint Paul, MN Multifamily Rental Market

[Abe Cohn]

Hi All,

I'm looking to connect with investors in the Minneapolis - Saint Paul, MN real estate market. 

I have had experience with single family and duplex's in NY and now looking to get into garden apartments or at least more units as opposed to single family. Is there anyone in the area that I can connect with?

Thank you

[James Hamling]

Originally posted by @Noah Chappell:

@Abe Cohn what are your goals for your your multi fam? Are you ok with a 4 or 5 cap in a mid range neighborhood? Any particular reason you're looking in Minneapolis/ St Paul? I've seen some portfolios of smaller properties floating around, with the changes to 1031 looming, you might want look towards some of those.. 

 Nobody with a penny less than $250m should even consider touching anything 4cap. The most minor of market shifts, property condition shift, can shift such deep DEEP into the red and if you don't have significant capital reserves to lean back on, or sizable holdings to average out against, it's like tieing on a hangman's rope. 

I work with some MEGA funds, that measure acquisition power in hundreds of millions, and they wouldn't even consider a 4 cap unless it had the most amazing and solid condition of near 0 cap-x for next decade or so, such as new built, that's it, with stellar inbound migration. That's funds who could literally burn a million $ for a weekend weenie roast, and they say it's too much risk. 

If your a $1m-$10m MFH buyer, DONT rush into anything, do thorough D.D. and DONT push, the 2nd best deal you ever get is the one you DIDNT buy and DIDNT loose capital on. This MFH market is shoveling out manure and calling it gold at a rate I have never seen in 20+yrs in RE. DONT be that person buying the bag of flaming-poo just so you can be proud you got something.