All Forum Posts by: Scott Martinson

My first two properties were bought on thin cash flow.  I intend to never make that mistake again.  Rents stagnated and property taxes went up significantly.  Before long I was being a landlord for free.  I wasn't losing, but I wasn't making money.  Fortunately I refinanced and was able to start cash flowing decent.  My last three properties I purchased with solid cash flow and cash on cash.   

Being a landlord involves risk.  Your 6% isn't guaranteed and could easy enough turn negative.  Personally I would want a higher rate of return.  I think it would have be be 10% minimum.  Dont lie to yourself either.  If it isn't a good deal walk away.

Read the Cash Flow Quadrant by Robert Kiyosaki.

Here is my $.02 worth.  I have 4 duplexes and just closed on my first commercial/industrial building today.  I can't imagine having my first real estate transaction be on an out of state property.  Managing across country for a seasoned investor might work, but my personal opinion is that it would be tough. Multi family prices SHOULD be based more on cash flow value as an investment.  If you look hard enough you should be able to find a suitable investment in your market.  

BP has tons of podcasts/articles about finding deals.  I recall one where a guy in Southern California is finding lots of deals.  Everyone knows that's a competitive market, but he still finds deals.  Take your time and find a deal in your back yard so you can manage it much easier.

Also my opinion, but I don't think most deals here are good.  You'll have to hunt to find one where the numbers make sense.

Buy where you know.

I'll put in my/a friend's $.02 worth.  Take it for what it's worth.  He's a mortgage banker I've worked with in the past.  We both have rentals and talk about them each time we see each other.  He has rentals around SCSU used for student housing.  He's had them a long time and they do well.  

However, he's considering selling and moving to a different market.  Changes in student housing/demand are his primary concerns.  According to him enrollment at the University is at a low point (verify).  With the description of your proximity this will affect demand significantly.

He also stated proximity to campus isn't a key decision factor for students anymore.  Many nicer/new complexes have been built away from school and the bus lines have been expanded making it easy.

This is one person's analysis of what is going on in that market.  I wouldn't say not to invest, but I would use that information to make sure you have reasonable expectations.

SCSU is my Alma Mater and I wish you success if you move forward.

I've owned rental property in MN since 2002.  Started with 2 units.  Added 2 in 04, 2 in 2014 and 2 in 2015.  I won't hold myself out as an expert, but I am familiar and do have experience.  Although MN is very liberal I think they have laws that are favorable to landlords.  I've gone to housing court a few times.  It has worked out favorably for me in general. I say in general, because I made some avoidable mistakes by going to arbitration.  What county do you think you would buy in?  I'm familiar with Hennepin County.  I definitely never came out on the wrong side of a housing court action.  

As far as tax laws, I only know our tax laws so don't have a point of comparison. Any specific points to share?