Newbie in Minneapolis

[Kerry O'Neill]

Hi all-

Just dropping in for a friendly 'hello' to the community. I'm currently looking at getting started in real estate with a few (2-4) small multi-family units.

As a first step, I'd like to get into an owner-occupier duplex via an FHA loan. I've been looking at properties since mid-April (4 months) via a realtor/the MLS. I've been primarily looking in South Minneapolis and Northeast Minneapolis and am open to St. Paul as well. Given my work and lifestyle, living in the urban core makes the most sense to me.

While I haven't been looking that long, it seems like I may be looking for a unicorn. I've seen several properties with multiple offers on them that are extremely expensive given the rental income they'd likely generate. I've really only seen one property that would generate decent cash flow (on paper) and likely had low near-term capital expenditure requirements, but it sold within a day (an offer was actually accepted while I was driving up for the showing). I expect to have to wait until off-peak real estate season (fall/winter)or longer -- and be quick when something promising becomes available.

I don't know a ton yet but have been impressed with this community and am open to suggestions pertaining to the Minneapolis area. I'm excited to learn more!

[Jay Lohn]

@Kerry O'Neill

Welcome to BP, your best bet is to find a distressed duplex with some equity gains to be had. But if you are set on using FHA financing it will not work as they would need a property in a certain condition to finance it. You should look at some different financing options 203K with a renovation budget built in or possibly hard money & re-fi once renovations are complete. Using the BRRR method.