Intro: Newbie Investor in Duluth, MN

[Jillian Peterson]

Hi All! I am a new investor in the Duluth, MN area and am very excited to join the BP community. I got connected to BP through the real estate podcast, and listen daily. My partner and I are new to Duluth and looking to house hack a duplex. We are hoping to use the accessory home share permit to do a STR setup. Wow! The market is moving pretty quickly here! Any tips for someone just starting out?

[Tim Swierczek]

@Jillian Peterson I have several clients in Duluth and have met a few investors there so my knowledge might just be enough to be dangerous, so take it with a skeptical eye.  My personal belief is that Duluth is one of the best cash-flowing markets in MN.  It has strong rental demand and a large stock of low-priced homes.  The city seems to be tough on landlords and licensing can be an issue.  I believe they only allow so many per block but you may want to confirm that fact.  The houses while cheap are often in a state of disrepair so my warning to you would be to make sure you properly assess the price you pay vs the home's condition, with housing prices increasing Duluth is seeing an atypical appreciation for that market.  It's usually a slow growth appreciation market which is why it generally cash flows so well but when the market increases like this you see low-end properties shoot up in value quicker than high-value properties.  That being said do not shy away from the higher prices properties if their condition is great.  I've made several well-timed and very profitable investments this way.  I'd be happy to do a virtual coffee if you would like to discuss just PM me.