Thoughts on investing in MN

[Naimo Khalif]

Hello fellow BPs

What are your thoughts on investing in rental units in the MN? I am looking at duplexes to 10/12 units as my first rental investment. Is it wise to go into this market with the current situation landlords are facing. I am looking at Minneapolis and Saint Paul. What specific locations would you recommend?

[LeAnn Riley]

@Naimo Khalif Hello, It is true that the City of St Paul and Minneapolis are adopting some new policies that certainly do affect landlords. Some policies like the ability to add an Accessory Dwelling Unit (ADU's) in Mpls can be good to add value to your property - only works for owner occupy right now but they are discussing open to rentals. And then there is Tenant Opportunity to Purchase Act (TOPA) in discussion right now. Yikes that would require those selling rental units to notify tenants prior to selling and give them an opportunity to purchase. It can drag out a sale to over 185 days for right of refusal. Right now only in discussion and there is lots of opposition. Then there is rent control discussion. And there is already passed the Renters Protection Policy to be in force later this year. ..Times are certainly changing.

St. Paul’s “S.A.F.E. Homes” agenda also includes what would be a first-in-the-state law requiring landlords to have “just cause” to not renew a renter’s lease. There are security deposit limits etc.

All this...Another reason why it is important to have good property management. You do need to keep up on the regulations.

What I see in the market right now ...many investors are shopping in the suburbs where it isn't as regulated. Of course, then the price is higher as the low inventory rush is on. Others realize there are more choices in the city for properties so are willing to take the risk. I see some price drops in the city, maybe because of the crime and unrest we have experienced.   Check out my you tube for a trend report on this market and I'd be happy to chat.