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Updated 17 days ago,
Looking for Insight Into Duluth, MN
Hello everyone,
I'm looking to start my journey of investing in Duluth, MN. My husband's family is from there and we go visit them often from our home in the suburbs of Minneapolis.
Is there anyone in the Duluth investing community I should connect with? Hows the market up there these days? :) Would love to make some connections/friends here!
Hello Meghan,
What type of investing would you want to get into? Long term, short-term, etc? I won't be able to help out for that region, but that would help get a better answer from someone else.
A fellow Minnesotan.
Best,
Brandon
Hi Meghan! I will PM you so you have my direct line. The best thing to get started is building your team - a lender and a RE agent who know the Duluth market! I can help with the financing portion, but I would love to help connect you with an outstanding relator in the area. My investments are all in the Twin Cities suburbs, but I have helped people with financing as far north as International Falls :)
@Jeff Schemmel who do you know in the Duluth area? Let's get Meghan set up with the best of the best!
- Sarah Meres
Hey Meghan! What are your specific goals with real estate investing?
My wife and I are in Stillwater and have house hacked for a number of years as well as flipped and own mixed use buildings in Western Wi. There is opportunity all over. Feel free to reach out anytime!
- Bryon Andrews
- 715-892-4596
Thank you all for this amazing welcome and advice so far! We are looking to do long-term rentals for a buy-and-hold strategy, starting to build up our portfolio and gain momentum.
That said, we have traveled a lot and stayed in wonderful Airbnbs over the years and have always dreamed of creating an incredible experience for someone visiting Minnesota with a short-term rental as well, so we are definitely open to that idea and have some great experience as to what we know would provide an exceptional short-term rental experience.
Our limited resources though will (probably?!) be best spent at this time with the long-term strategy in mind :)
Hi Meghan,
My wife and I live in Coon Rapids, but have 2 rental houses in Duluth that we rent to college students. We also just purchased a house in Oliver, WI that we plan to run as a short-term rental. Feel free to reach out and we can give you information on our experience. We love Duluth and the north shore and hope to "retire" there in the next handful of years.
Corey
@Meghan McCollum I'd reach out to @Matt Jennison and @Keith Linne. They both have extensive experience in Duluth.
- Tim Swierczek
Quote from @Tim Swierczek:
@Meghan McCollum I'd reach out to @Matt Jennison and @Keith Linne. They both have extensive experience in Duluth.
Thanks for the mention @Tim Swierczek.
@Meghan McCollum - At one point, I had roughly 40 doors in Duluth. Still have 10 doors up there, and always pursuing deals. Would be happy to connect via text, phone, or email to answer your questions.
@Matt J. and I get together regularly to talk about real estate. He has Duluth investments as well, and is a great resource.
Keith
Wow! @Bryon Andrews @Sarah Meres @Corey Robert Leet
I suppose I will put myself out there too. I currently live in Lake Elmo and have 1 door (previously owned townhome) in Woodbury. Am looking for another long-term rental property here in the state. What are some areas in the state that wouldn't present any challenges in finding a tenant? Are there any specific areas that are reasonably priced compared to the cities? I'm open to single-family homes, multi-family, condos, or townhomes. I'm still new to all of this and seeking any information or guidance anyone is willing to provide!
Thanks!!
9 doors?! That's great!
I agree with the closer to the metro the more expensive a property is, but also provides more opportunity.
I suppose I would like to have another property in the metro or just outside of the 494/694 loop. My question for you is the type of property. Again, my first door is a townhome. I like the townhome because of the HOA, but also dislike it because of the HOA. I like that lawn and snow removal is taken care of in an association, but dislike that expense each month. Do townhomes/condos provide just as good of an opportunity as single-family homes as far as cap rate?
@Michael HoustonSo cap rates are for commercial properties so they have no use in 1-4 unit values. I personally would never invest somewhere that could outlaw rentals. I have a client that bought a condo to rent after living there and the HOA ended up outlawing rentals. I personally believe single family produces the best rents and appreciation. However, I believe multi family provides the best ROI and is the best way to scale.
Thanks for sharing your thoughts on single-family vs townhomes/condos. How would I start to go about finding perspective single-family homes that are current rentals or could be turned into rental properties? Also, how does one assess whether or not one can turn a profit after paying principal/interest, insurance, and taxes each month?
Hi @Meghan McCollum! I'm a local Duluth investor, happy to share my experience and can give some recommendations to help build your team. I do mostly long term rentals but have a few short term and mid term properties as well. Duluth has traditionally had a strong college rental market and thankfully any small decline in enrollment rates haven't been as severe as other traditional college cities, eg. St. Cloud. And like many other cities, vacancy rates are still low, lots of demand for housing of all types. I'll send a PM with my contact info, happy to connect more by email/phone or in person next time you're in town.
-Jeff
@Michael Houston In Duluth, most rental properties that get listed on the MLS make note of an active rental license for the property. Realtors should have access to that information as well. There aren't many HOAs here, if at all. If you hire a Property Manager they can sometimes help arrange lawn and snow removal service.
A good place to start figuring out profit/cash flow is to search the forums for the 4 Square Analysis. Brandon Turner outlined this method in one of the older podcasts and there are previous posts in the forums. Or explore what BP has for calculators under the 'Tools' section.
-Jeff
Quote from @Michael Houston:
Wow! @Bryon Andrews @Sarah Meres @Corey Robert Leet
I suppose I will put myself out there too. I currently live in Lake Elmo and have 1 door (previously owned townhome) in Woodbury. Am looking for another long-term rental property here in the state. What are some areas in the state that wouldn't present any challenges in finding a tenant? Are there any specific areas that are reasonably priced compared to the cities? I'm open to single-family homes, multi-family, condos, or townhomes. I'm still new to all of this and seeking any information or guidance anyone is willing to provide!
Thanks!!
Hi @Michael Houston ! multifamily and single family both have potential value. It's more about the home itself! Dan makes a great point - you want to be clear of any areas that are working on limiting the ability to rent OR cap your rental potential. I have 6 doors in the TC area and they're all currently outside Mpls/St. Paul. I have found personally some city rules for renting are simple in the suburbs and some people are specifically seeking these areas for one reason or another. I have had no issues finding renters for our units and have have minimal turnover. I will PM you my cell number and we can connect to brainstorm for your case.
- Sarah Meres
@Jeff Rogers - Hi Jeff. I know this is well past when you posted but I noticed in the thread that you do some MTR in Duluth. I'm wondering if you still do? My wife and I just recently started investing in the past couple of years and have a MTR duplex in WI but have been contemplating the Duluth market. We live in the TC Metro but Duluth has some appeal. I'm wondering if you might ever consider a brief conversation about your experience in Duluth and what you have seen from the MTR space there? Thanks and I hope this finds you doing well!
Sincerely - Jason
Hi @Jason Thon
If you are looking to connect with folks on MTR in Duluth, I'd be happy to connect! My husband and I run a MTR in Lincoln Park that was previously renting as a LTR. Also, my brokerage has a handful of investor clients that actively run MTRs and STRs in the area.
Reach out anytime. Hope you're able to connect with Jeff as well! He is a seasoned investor and very well-versed in REI.
- Brittany Kuschel
@Jason Thon Hey yeah, happy to connect. Both cities are awesome for investing. Duluth's housing is incredibly diverse from a sub-market standpoint. I'll shoot you a private message.
Hey Meghan!
My husband and I are also looking to start investing in the Duluth area (or North Shore, in general). I realize this post is a bit old, but wondering if we could connect further? We're based out of Chaska. I'd love to take you out to coffee and talk more about REI! Can I email you? LMK! Thanks!