How would you make this work

[Collin Lee Johnson]

Alright so doing the daily deal analysis and found this property, 230 Belle ave randomly on the tax assessors site, and was playing around with it, it seems like a nearly impossible place to pull off in my circumstances, so I am curious, how would you guys make this work, and I am curious under what outcomes do you define 'work'. For me, this place doesn't even want to break even, or go positive so I would love to hear how anyone makes a profit on this place, this isn't for sale, just hypothetical and practice analysis

Here as owner occupancy

here as non owner occupancy

my general analysis is the following:

House Number / Address: 230 Belle Ave Mankato MN 56001

Description: a nice little single family that doesn't need much work in the fringe of the suburbs of mankato

How are the numbers run:

• How much down 3%
• Interest 3.076%
• PMI? $90/mo
• Taxes, High, low, etc: Overall relatively low for the city, I believe I ran them at 1800 a year, which is assuming a small increase, maybe a bit too small given the relative annual upticks over the past years. In general though not as expensive as downtown
• What makes it work, (not) feasible: So as a househack, the only way this makes sense (lowering my rental outflow) is if I don't budget for repairs, vacancy, maintenance, or property management, which saves me roughly 323 a month, which puts me at a loss of 500 a month, which is an awful thing to not account for so I would prefer not to have that be the only way this property works out. When running at non owner occupancy with the same down, interest, and PMI, taxes (expenses) This baby has to be pumping at $1980 a month in income, which no it would never ever do, the neighbor just doesn't support it. So it's safe to say that in this market with my circumstances this particular property just doesn't cut it for me

Location: Southern Middle of Mankato off of Madison tucked away on a side street before victory

Marks in its’ favor It’s a nice house outside of the immediate downtown / heart of Mankato area, which makes it great for avoiding noise and other people in general, central air, appliances, it’s had some improvements done to it fairly recently which makes it a nicer place, newer furnace, AC, roof, windows, I mean it’s really been fixed up and I imagine it won’t have much work at all if any needed to it. Basement could potentially see an increase in use if it were furnished which could be good for using as an additional room, but it may be better served as storage

Marks against it Well this isn’t necessarily bad but it’s a bit disadvantageous, but it’s not a duplex in the sense that it has split up units, it’s all one big house which is fine, but it makes it a bit tricky when parcing out utilities and other time with appliances such as the washer and dryer, dishwasher, bathroom space. The bathroom are also not two full, there is a ¾ and a ½ and a full, so there’s only one shower.

• Potential repairs
• 1 nothing really foreseeable
• 2
• 3

Thoughts: This is a great property that is in really really really good condition, but with Mankato and everything in general how it is now the price that I would likely get something like this at, coupled with the rent that I could get for it just don’t make sense to do right now.

So yeah, if you want to look this over, check out the Mankato MN Realtor or any of those other MLS portals and look at it yourself, I'm thinking rent out two of the bedrooms probably to a couple, probably not month to month, maybe fix the basement up to make it livable and try to air bnb, there is a lot that could happen, but regardless of what I think I am curious what some of you more creative real estate folks might try to do. Again this is a purely hypothetical property as they all have been if you keep track of anything I do, so please let me know, thanks gang!