Live in Minneapolis, invest in Rochester?

[Jordan Grimstad]

Anyone here live in Minneapolis/St. Paul area and invest in Rochester B&H (specifically multifamily)? I'm considering Rochester real estate for my next deal, and I wanted to get experienced investors thoughts on the following:

• How do you think about property management? Do you treat it like it's a 100% remote market or are you still checking on the property in person a few times a year?
• How competitive is Rochester's market vs. the Twin Cities' market?
• Any neighborhoods to avoid?
• What kind of vacancy rates and property management fees should one expect?

[Melissa Gregg]

Hello from Rochester!

I can answer a few of your questions. Multifamily have been quite difficult to get ones hands on over the past year+. They just aren't getting listed and there's a lot of interest. A quick look at the MLS and there's 4.

We have a number of great property management companies in the area.  I would interview them once you have a property under contract on a particular property as the rates vary and a number of them have minimums that make for a high percent if you get a property with an efficiency, for example.  I've seen 7-10% fees.

Vacancy rates will be location specific. There have been a tremendous amount of new apartment buildings being built. 

I would be happy to chat further about specific properties!

Melissa