Analysis 431 Lynnhurst Avenue W, Saint Paul, Minnesota

[Bruno Franco Netto]

Hello guys, my name is Bruno Franco Netto, I'm a biggerpockets member and I'm also a real estate agent and investor in the Twin Cities area. I'm starting to use the Biggerpockets calculators to analyze deals and I would like to ask your opinion on one of those deals:

431 Lynnhurst Avenue W, Saint Paul

Built in 1885

4 Units, 2 Garage

$254,900 price

2 days on the market

I'm thinking about it in terms of making it a rental property house-hacking style with a 3.5% FHA loan, 4% interest, 30 years fixed.

My analysis is the following:

Expenses: 

Principal and Interest - $1175

Property Taxes - $415

Property Insurance - $100

Mortgage Insurance - $100

Utilities - $300

Vacancies - $265

Repairs and Maintenance - $132

Capital Expenditures - $132

Property Management fees - $265

Total Expenses - $2884

Income

Unit 1- $700

Unit 2- $525

Unit 3- $850

Unit 4- $575

Cashflow after moving out of the property and hiring property management company - negative $234

So basically according to my analysis this is not a great deal at the current price but I'm curious to see what you guys think about the analysis. 

thank you,

Bruno Franco Netto

[John Woodrich]

Originally posted by @Andrew Tortora:

If minimum wage goes up so will rents barring an exodus of renters.

Why do you think rents in St. Paul will increase with a minimum wage increase?  Most people don't work at minimum wage and the increase will have no effect on them....

Separately the numbers on this deal don't work.  At the same time there are a lot of people on here looking for investments who might become a competitor if you post a good deal in the future.  You may consider leaving out the address in the next post.  Good luck on finding a property.