Is this a good investment in Bloomington, MN 55437?

[John K.]

I'm an out-of-state investor and analyze a ton of properties. Any thoughts from locals appreciated. Thanks!

https://www.redfin.com/MN/Bloo...

	Purchase price	$153,000
	Down payment	$38,250
	Rent	$1,649
	Mortgage/mo	$611
	Expenses/mo	$885
	Cash flow/mo	$153
	Property taxes	$133
	Insurance	$69
	HOA	$353
	Mgmt fee	$82	5.0%	Management fees (%)
	Vacancy	$132	8.0%	Vacancy (%)
	Repairs	$33	2.0%	Repairs and maintenance (%)
	CapEx	$33	2.0%	Capital expenditures (%)
	Electricity	$0	0.0%	Electricity (%)
	Water & sewer	$0	0.0%	Water and sewer (%)
	Garbage	$0	0.0%	Garbage (%)
	Other	$49	3.0%	Other monthly expenses %
	TOTAL/MO	$885
	Down payment %	25%
	Term in years	30
	Interest rate %	4.928%
	Metrics
	NOI	$9,170
	Cash on cash %	4.4%
	Closing costs	$3,825	2.5%	Closing cost (%)

[Brandon Plombon]

Hi @John K. I grew up in the twin cities and live about an hour south currently. Bloomington is definitely right in the middle of everything within the Twin Cities. The location is great.The airport is right there and many many businesses. Bloomington is more of a blue collar/workforce city that can't generate the same amount in rents as neighboring cities. A quick glance at what is listed currently this property is the lowest priced 2 bed condo in the city- there are apartments in similar sqft and 2 beds listed for $1,250-$1,400/month in rent. They may not offer all of the perks this condo does and you probably can demand a higher price due to that reason. I feel the rent might be slightly higher than markets as others in that range are much nicer on the inside and have been sitting for 20+ days. Lastly, a 4.4% cash on cash return does not interest me at all as you can nearly get 3% on treasuries currently. I personally would pass on this deal. I hope my insights help - let me know if you have any questions!