All Forum Posts by: Ben Kappel

GREAT TOPIC!  I would be bias since I have lived in ND my whole life, but I own rentals here and always wonder why there is not much talk of the state in the forms or marketplace. ND has consistently ranked in the top five states for the past seven years.(ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX)  There is a great economy here with one of the lowest unemployment rates in the country, and consistent population growth. There was a huge influx due to an oil boom, where homes tripled in price overnight and in 2014 the highest rents in the country weren't in Manhattan, but rather in Williston, ND.  That oil boom and since settled down and prices leveled out.  

Oil towns like Watford City and Williston could be affected more if the price of oil crashes hard, but also could make serious money if we see $100 oil again. I'm not a risk taker, but I know many that do invest there.

Even though I live in an oil town and work for an oil company, I look for investments in Dickinson, Bismarck, and Fargo, due to the stability and consistent growth, not to mention great cap rates. I do have one rental in Denver but to reinvest again there would require so much more capital with the super high home prices and a low ROI/Cap, doesn't seem worth it to me. That is why I'm surprised there isn't more people from larger cities looking up here for deals.

I would love to hear others opinions on whether or not to invest in the great cold snowy North! 

Pretty sure the correct answer is VEGAS.   And put in on all on black! Best and most secure way to double your money.  jkjk

@James Carlson Hey thanks for checking!  Its great to get an opinion with eyes on it.  I sent off an email to the PM just to verify its still on track with the market, but its back to the bottom of my concern list.   

Appreciate all the help, thanks guys.  

Lots and lots of threads on this topic,  check out the search function.  

So I have a rental property in the Berkeley area of Denver, townhouse in a row of four, 2-bed, 1.5 bath. I have a very reputable management company take care of it, but today I saw an end unit listed for $1800/month while mine is in a lease for $1425.  Exact same layout and size tho this other unit does have a nicer/updated kitchen and bathrooms.   Mine has been leased for 3 years to the same tenant (good tenant) (middle of winter lease so maybe it had to start lower?) and increases at 3% yearly.   Now that the lease is set up in the beginning of summer, do I demand a much higher rent increase to bring it up to market? The management company always seems against this when I bring it up. Does Colorado/Denver have and legal maximum yearly rent increase %?   Does a nicer kitchen and bathrooms deserve that much more in rent where I should update it to get prime rent?  

For sure replace the carpet, cat pee smell is the worst!  I don't allow cats for that reason only.  You sometimes have to remove the carpet, the carpet pad, and sand and seal the flooring underneath to get ride of the smell if its bad enough.  I'm not sure what you had for a lease agreement or a deposit, but if it didn't smell before they moved in, then for sure charge them to replace the carpet. They should be treated like any other tenant, no friend discounts. 

@Dennis M.  HAHAHAHAHAHAHHA   best response ever!!

@Jennifer Greuel Well congrats on the Minot place!! I looked online there too for a while but its just a little to far for me, especially trying to manage the place myself. It really helps the numbers with getting away from that management fee. And I do kinda agree on biz, I think I looked at well over 20 places, but eventually I found one that is working great now. Good tenants help a ton also. Plus there's really not a lot of SFH for rent in the Bismarck area, I think when i listed mine it was only 1 of maybe 3 or 4 houses, and I allowed dogs so I could get a premium rent for it and it had a lot of interest. I was trying to run numbers on getting a top/bottom duplex there, since it always seems like there's some for sale, but it seems like there's so many available for rent the prices weren't great. For the same investment it looks like I could get more rent for just one home with one tenant than having to deal with a duplex with two tenants.

Anyone have any experience with duplex's??   Are they worth it?

Hey Chad, I'm from out in Dickinson, and yes it doesn't seem like to many people on BP are from up north. I just bought my second SFH rental in Bismarck actually this last summer, but I did look extensively at a few properties in the fargo area. My issue with fargo is the numbers really didn't add up on any properties, that or they were too close to flood zones, way to old, or needed to much work. It would have been to far for me to organize any type of flip there. I think fargo would be a great spot to start with rentals, but the budget is going to be tight the first few years since homes are really going for a high price. That being said, the homes there might increase in value faster since its more of a stable market. My advice is look for places that are FSBO and negotiate hard, but have a realtor on your side to make sure the paperwork is legit. That's what I did in bismarck and I got a place 14k under appraisal plus I made them pay off all specials and put a few points to closing.

Good Luck finding a place!  Just like planting a tree, the best time to buy(plant) was 5 years ago, the second best time is today.  The worst deal today is still going to be the best deal in a few years. 

I really should be in the lease that just that particular dog, (name and breed in the lease) is approved. If they want another dog it is not automatically approved. A lease addendum must be done and you should be able to charge whatever you think is fair for this "new tenant" being added to the lease.  I feel like the charge you suggest is fair. Just make sure the new dog is listed on the new lease if approved.