All Forum Posts by: Adam Tafel

@Chad Gardner - this is one of the most common questions we get from potential/future househackers. 

It's hard to speak in such broad terms - one man's "cashflow" is another man's vacancy reserve, so whether you can pull it off or not will be somewhat determined by how optimistic you're willing to be. If you are pessimistic you'll certainly not see any cashflow. Better than each of those options is to be realistic, what most of us aim to do, but easier said than done. 

Even without a budget for repairs/etc - let's just define "cashflow" as income left over after PITI & utilities for a moment - Mac Groveland and Highland Park are going to be tough. Solid 2-4 unit properties are so scarce in these areas (~21 sales in last 12 mo between the 2), the market simply doesn't allow a buyer with a low downpayment to enjoy any "income" out of the gate. This isn't so much due to interest rates - these neighborhoods have been this way for at least 4 years. Demand was much higher when rates were lower - you might be able to scoop a solid 1920s Highland up/down duplex for 10% under list and 20% less than it might have sold in 2021 - but current rates erase any potential savings. I would personally rather be the guy with the lower purchase price and higher rate, but it doesn't help a brand new househacker in the short term.

There are 2 ways to pull it off in Highland/Mac/Cathedral Hill/Summit Hill - 1. Go Big (4plex, spend 700k +) or 2. Buy Something Ugly. You'll need patience as these opportunities don't come often, but it can be done. 

"South Minneapolis" is such a broad term - there might be as many as 25 different neighborhoods ranging from A-D class, each with their own pros and cons. If I'm looking to househack with my family (I had a toddler and a newborn the last time we did it) I might be interested in 1/3 of these neighborhoods, of which a few will absolutely produce some income (assuming you're number's aren't ultra-conservative) upon moving in year 2-3. Too much to discuss for a BP forum, but it can be done. 

The good news - there are plenty of family-friendly neighborhoods between St Paul and S Mpls which offer decent opportunities for a househacker - you just need to know where to look, what to avoid, and where the opportunities are (undervalued properties, under rented units, value-add opportunities). To be clear - you aren't wrong, it's harder right now. I might have sold 20-30 solid househacks to new investors per year between 2020-2023 - this year I'm doing less than half that. All that means is you need more patience - and if you're looking for a summer move and making a gameplan in December you'll be just fine. 

HEY Minneapolis/St Paul Landlord Community! 

@Tim Swierczek and I started a podcast a few months ago - thank you SO MUCH for all the downloads, feedback, and guests who have given us their precious time so far. So far we have only posted 7 episodes, but we have plenty more in the holster and are looking for more great guests. Our ultimate goal is to educate local investors with real, detailed, usable advice. While our audience is on the small side at the moment, we are seeing exponential growth week to week - and future guests will certainly benefit from the exposure. 

Guests should:

1. Invest in Twin Cities real estate

2. Be open to sharing specifics about their deals and strategies

That's it! So far we've interviewed folks with portfolios ranging from 2-150 doors, we are open to talking to anyone with a fun personality who can provide specific insights into what works (and doesn't work) for them. No need to be an industry professional, but it's always a plus if you have a unique business or something to plug! 

We only shoot in person at my house in Highland Park, Tuesday mornings. Comment below if you know someone who'd make a great guest! 

@Tim Swierczek thanks for the tag. 

@Bob Avery - agree on the need and real impact of offering to section 8 voucher holders - an aspect of the business we don't hear folks discussing very often. 

I like TurboTenant for it's simplicity (and I'm pretty sure it's still free..)

I have a client who is a smart-computer-guy not unlike yourself, he has a system for analyzing deals in bulk. I export large csv files from the MLS for him, I would be happy to do the same for you.

Welcome to BP! 

Thanks for the tag @Tim Swierczek. 

Hello @Andrew Beilke! I've been hosting for 9 years in the Twin Cities area, I've managed 25 different homes of all types and sizes over the years. I am not a big management company, I currently have 12 units under management (2 of the 12 are my own STRs). 

The best value I can provide a perspective client is my own .02 on whether or not your STR/MTR endeavor will be worth the hassle. I'm often approached by folks who are considering converting a unit to STR or purchasing a property for STR, and I probably only give the deal a thumbs up 20% of the time. I've seen many successes and a handful of flops over the years. Feel free to reach out to me directly to discuss.

@Tim Swierczek Thanks for the tag - will PM OP

If you care about the long-term value of your home, absolutely do not remove the garage. While a single stall garage might be only a ~10k adjustment on an appraisal depending on your local market, the lack of garage can kill market value which is harder to predict. Would you ever consider buying a home without a garage? I am in Minnesota where the winters are more hardcore than Philly, but you still get them. 

Talk to @Grigoriy Gorshteyn about MPLS sec 8 best practices and strategies. 

@Molly Jones it's best practice to check the assessed value while analyzing a deal. There is typically a 10-20% margin between assessed values and market values with 1-4 unit properties in the Twin Cities - but if the property you're offering on has a larger than normal gap between the two values, plan on some increases in the following few years. I have a handful of rentals in Ramsey County - after a property is updated and sold the assessed value can jump up dramatically, but then the future increases are much slower and more predictable in the following years. 

How often do we see these "tenants rights" measures get struck down by the courts? Time after time. 

Second for Grigoriy!