Is North Minneapolis ever going to "happen"?

[Erika Young]

Hello all,

I am just starting to look for deals in the Twin Cities area, and it seems that most buy and hold properties fall well below the 2% threshold in the Metro area and quite a bit beyond. (I will confess here: I am wholly unfamiliar with St. Paul, so I may be mistaken in that market). 

The few feasible (on paper) deals I have located so far seem to be concentrated in N Minneapolis, but it seems that the appreciation there is unlikely, and the property and/or tenant class is unappealing to many. There are some GORGEOUS Victorian homes in that area, and it's so sad to see so many in various states of disrepair. Why isn't this area being revitalized (I suppose some would say "gentrified")? I work in CRE lending, and I have heard about lenders giving pause on otherwise solid deals due to the N Mpls location. I have seen very large duplexes or even 4plexes for a song, that would reach the higher side of 1/2 million purchase price anywhere else.

Is anything in the works for the area? Am I missing something? Is section 8 the best option here, or is appreciation on the horizon?

I look forward to your thoughts!

E

[Jeremy Rasmussen]

we haven't gone the section 8 route yet but are definitely considering. My girlfriend who manages the property is a social worker by day and has a much better understanding of the agency's and their process.

We're currently house hacking in North up in the lind bohanan nieghborhood. I've talked to many investors who are comfortable with properties North of 44th which would be Weber Camden area(which can be hit our miss) anything North of Broadway and South of Lowry can be a tough area.