Househack Feedback/General Questions

[Harry Sharp]

Hey Minneapolis investors!

I'm currently living in Boston, MA and am just starting my real estate journey. I moved to Boston right out of college, and while it has treated me well, I'm looking to relocate. I'm interested in Minneapolis for a variety of reasons and have a couple of questions about the area - if anyone could help me out, I would appreciate it!

My Goals: I plan to go the house hacking route and buy a property with an FHA loan, live in one of the units/rooms and rent out the rest. Preferably this would be a multi family property, but single family works, too. I have read on the MN forum that house hacking here is more achievable with single family homes. That's step one. After that, I'll be looking to continue acquiring buy and hold residential rental properties in the area.

Financing: I currently have about $15,000 saved for a down payment. I would be able to earn a salary of $40-$50k and I have good credit.

Here are a couple of my questions. (I feel like I have a million...)

1. Is house hacking a viable option for me if I wanted to keep my commute within 30 minutes to the Minneapolis/St. Paul area? From looking into home prices on trulia/zillow, it doesn't seem like I'd be able to afford anything super close to downtown. Are there areas further outside of the city that would be more affordable but that tenants would still find desirable to rent?

2. How drive-able is the city? I'm asking because in Boston, what should be a 30 minute drive into the city can really be twice or three times that length because there is so much traffic. I want to keep my commute as short as possible!

3. Would you think that Minneapolis would be a good place to get started in real estate investing for someone of my income level and experience? It's certainly not the most affordable place, but it seems like prices are rising and the population is growing, so it appeals to me as a place to call home. I have a lot of freedom of movement at this stage in my life, so I want to choose a place that I will LOVE and that will allow me to carry out my goals in real estate.

Thanks,

Harry

[David Barnett]

@Harry Sharp I live in the Boston area and chose to invest in the Twin Cities. From my visits out to the Twin Cities area, the traffic isn't nearly as bad as it is in the Boston area. I would say that the Twin Cities aren't as established as the Boston area (read overpriced), and there are still some areas where you can make a buck or two. The thing that attracted me to the Twin Cities area is how many white collar jobs there are (it's a banking hub in the midwest). There are a lot of banks and financial institutions (can't forget Target, too, which is everywhere out there), with a lot of white collar jobs. With $15k down, you could definitely get a MFR if you were to house hack in a fairly desirable area. From my limited research (guys and gals on the ground, please correct me if I'm wrong), duplexes in solid areas trade at about $100k-$125k per door, while triplexes are closer to $90k-$115k per unit. Therefore, it's fairly affordable, especially in comparison to the Boston area.