New future REI to Minneapolis

[Jared McKie]

Hey Everyone! Since joining a few weeks ago I've been reading many forums and discussions and there sure is a lot of information out on BP!

I joined BP to network with local investors, contractors or anyone with similar interests in Real Estate. I want to use Real Estate as an vehicle to accumulate long term wealth for retirement and some additional income along the way. Furthermore I think BP is a great way to gain knowledge about residential RE investing for the long term and potentially flipping sometime down the line (5 + years).

About me:

I'm a Minneapolis area resident and MN native with 3 years of experience in commercial real estate management. I have a degree in Real Estate and Business along with my MN Real Estate License with a brief stint in residential condo & association management right out of college in Rochester MN before moving up to Mpls.

My goal is to purchase a duplex within the next 12 months (before interests rates increase substantially) that may need some work for less than $200k, conventional financing and occupy on side while renting out the other. The intent would be the rental pays the mortgage and I can use those savings to improve each space over the course of 3 years, progressively increasing the rents and eventually move out and have a cash-flowing property. I'm currently looking in the NorthEast area or St. Louis Park (less likely). Beyond that knowing that RE prices are inflated in the Mpls market I also have interest in Eau Claire, Madison and Milwaukee WI. Those areas would need to be single family units-long term hold. 

I look forward to contributing more to BP discussions and hope to attend a Minnesota meetup sometime in the near future!

-Jared

[Gary Thomas]

Welcome to Minneapolis @Jared Mckie! Your investment strategy is a very solid one. I too will take a very similar avenue once the lease on my town-home expires. I'd suggest that you know the properties in your area very well to avoid over rehabbing your future duplex. 

Property values are definitely returning to a higher purchase point, but the growth is slow and steady so deals are definitely still being made in Twin Cities-even off the MLS. I've had success with FSBOs and other motivated sellers like divorcees and people near the end of their redemption period. If you have any questions, don't hesitate to contact me.