1st Rental Investment in Minneapolis

[Hank Walter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $6,000

First rental property purchased with value add potential; bathroom and bedroom addition, installing dishwasher, new driveway, shed addition, and wood flooring. This was financed via conventional mortgage.

What made you interested in investing in this type of deal?

Monthly cash flow, location, tenants, and ease of upcoming projects.

How did you find this deal and how did you negotiate it?

MLS access and sent an offer after running it through my excel model.

How did you finance this deal?

Conventional financing with Cardinal Financial

How did you add value to the deal?

Adding bed & bathroom, dishwasher, flooring, new driveway, and shed.

What was the outcome?

Work in progress..

Lessons learned? Challenges?

Having friends as tenants is a difficult challenge to both be fair to them with rent, upgrades, and privacy as well maintaining the friendships.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Mulcahey with Cardinal Financial