Duluth MN Multi Family

[Evan Dammar]

I'm considering acquiring some property up in Duluth MN. Curious if anyone has experience with the downtown area. 

Any suggestions or lessons learned?

My cash-on-cash numbers look promising - but want to make sure I cover my basis before investing in a new area. 

[Michael Schraepfer]

Downtown can be tricky.  There are a lot of high end "urban" type rentals in renovated commercial loft style buildings.  A lot of the residential style housing adjacent downtown is otherwise pretty rough (validated by a local police heat map :).  There are some gems in there though, absolutely.  We manage a few that are very nicely remodeled and do well because of the walkability - but it has to be a tenant who is comfortable with the urban setting and not all are. 

If the numbers look great, I'd make sure to both thoroughly evaluate the condition of the property and also get a good feel for the condition and tenant quality of the adjacent neighboring property.  

Good Luck!