All Forum Posts by: Brad Cornell

Hey @Nick Tebo my wife and I live in Minnesota and just did exactly what you're talking about. We purchased/house hacked a 4 unit property for about $238K using a 5% down loan and are now rehabbing each unit one at a time and then filling them with good tenants as they are finished. We currently have 2 units done and rented and are working on the last two units, one of which we occupy. We are planning on doing the same thing with the refinance because once this thing is filled and we can show stabilized and increased NOI it should appraise for about $335K.

If you don't have a killer income the two best things you can do to gain more units quickly are to increase income/decrease expenses, and second begin to build a reputation with investors and future partners.  

We've been working really hard to increase our income/decrease expenses and one of the ways we did that was to house hack this thing which is now adding $1380 of extra income and we're only two units in.  I believe for long term success this is key, so in regard to income I'd focus on killing it as a Realtor and generating as much income as you can.

Secondly, the rate at which you will be able to accumulate more properties will be directly proportionate to how fast you build credibility and your network.  If you're really wanting to scale and don't have the income to back it up, because BRRRR's take some time, you'll need to begin building a network of investors/partners.  This is done through networking, adding value to their lives, and building credibility.  We've been doing this for about six months now and at first our investors were a little sketched out by our age and the idea of what we wanted to do.  But I will say that as they have seen us make the progress we have on this property and fill it with quality tenants so quickly the credibility we have is increasing.  I just met with an investor yesterday and he said for the first time that "he knows enough people that we could comfortably raise $250K."  He never would have said that 12 months ago when I initially started talking to him about REI.

So because I'm about 12 months ahead of you that would be my advise.  Definitely go for the BRRRR but dont forget about income/expenses and building that network.

Hey Everyone!

I've been really busy over here and have been meaning to get back to you all. Just wanted to give a BIG thanks for all of the referrals and suggestions, this really helps. I've mostly been looking at properties south of the Twin Cities and as inventory is limited I feel that I need to break into the metro markets.

I'll be in touch and definitely look forward to seeing you guys at meetups! 

Hey MN Investors,

I live in the south metro and am looking for a good investor friendly real estate agent or a few of them that I could connect with.  I have a great local agent right now but they aren't exactly proactive and investor friendly.  

If anyone would be willing to send me some recommendations that would be amazing!

I'm also looking for a new CPA/Accountant that is really good with real estate so if anyone know someone that would be greatly appreciated.

Thanks guy!

@Jay Hinrichs that makes perfect sense. Thanks so much for the clarity. Time to go talk to my investors!

So I currently have the same issue. I have a potential flip that I'd like to submit an offer on. My realtor asked me how I'd be funding it and I told her I'd probably be using partners/private money. She then told me that I'll need POF. Problem is that my investors aren't interested unless I have a deal under contract. Everything I've heard on BP has always said "if you find a good enough deal, the money will come." I've also heard it said that you should get deals under contract to lock them up and then go get your financing figured out.

Any more insight on this would be amazing! 

@John Woodrich It is within a few blocks of St. Olaf.  About a 3 minute bike ride.  The other triplex I mentioned is about the same distance.

Thanks for the feedback @John Woodrich and @Jason D.

I neglected to mention that we ARE planning to owner occupy this property (house hack) hence why the financing looks like an FHA. We are also planning to have the seller pay closing costs, so I was assuming $1000 for any loose ends. I planned to have my realtor facilitate for us. But as it stands this is an off the market purchase. Does that clear up the financing issues?

As for rents, I've been watching Craigslist in Northfield for about 6 months and have seen rents for 2 bed houses range from $1000-1400.  Some including utilities and some not.  The ones over $1300 tend to include utilities.  The current landlord is renting it out at $1000 each side, and the tenants pay all utilities.  

There is another triplex that we're negotiating about that has a 2x1 and two 1x1's.  The owners said the 2x1 pays $1050 plus all utilities and the 1x1's pay $800 including utilities.  

Hey All!  Big shout out to all of BiggerPockets for being AWESOME!

So I'm working on my first  every deal here in Northfield, Minnesota, and have analyzed this thing to death.  So instead of running the numbers for the 20th time, I thought I'd reach out to all you great people and get some other eyes on this one to either confirm or deny if I'm crazy.  I'm hoping if I lay out the data, ya'll can tell me if I'm missing something or if this is solid!  Thanks so much in advance!

INCOME

EXPENSES

I have researched the local rental rates pretty extensively using Craigslist and Rentometer and feel that my rental income numbers are pretty solid. 

Other Facts:

• Built in 1969
• Off market sale
• New Roof in 2007
• Plenty of off street parking
• All 4 units have separate access and a common laundry area
• Not sure yet if I would end up with instant equity

Any feedback would be greatly appreciated!!!