All Forum Posts by: Brian Wagner

Congratulations @Eli Sunderland  

A few questions for you.  Do you happen to know the property's zoning?  Before incurring the expense of adding additional bedrooms you may want to double check what the property allows for occupancy.  Many duplexes in Minneapolis are zoned R2-B.  In that case even if you have 5 bedrooms then legally you may only be allowed to have 3 unrelated people living in the space.  If you are renting to a family of 5 it wouldn't be an issue, but 5 unrelated roommates and then technically you would not be legal.  You can look up zoning along with other info such as prior permits pulled here:  

http://apps.ci.minneapolis.mn.us/AddressPortalApp/

Also here is great page about finishing attics in Minneapolis:

http://www.ci.minneapolis.mn.us/www/groups/public/...

Last, it is much easier to keep the property a duplex than to build an additional unit in the attic. Converting a duplex to a triplex brings on more strict rules.   As for the stairs you may or may not be grandfathered in.  You may find that it sort of depends who you talk with at the city.  The safe bet would be to add a dormer and bring them up to code although if it is near the front or back exterior wall you may need to get a conditional use permit to add the dormer.  

You are smart to focus on cash flow.  If you can't find anything just keep looking.  In a hot market you may also have to consider value add properties that need repairs or need to be redesigned to reach your targeted return.  I would say no matter what stay disciplined and don't let your desire to buy something push you into something that has a lackluster return.  Best of luck!

Congratulations.  I would recommend when evaluating properties to focus in on cash flow versus just the valuation/appreciation.  Values go up and down as the market moves but as long as you have cash flow the loan payments get paid and you continue to own the asset/make money.  Good luck!

Good luck Dylan.  Investing in RE is a great way to build wealth over time.

Welcome!

@Pauline Misiak

Welcome to BP.  If you are looking for a local bank in the EP area please look us up.  Best of luck as you work towards your first investment property.

Welcome to BP @Travis Collins !  Let me know if I can answer any questions you have as you continue to grow your business.  I come from the perspective of both an investor and a banker.

Send me a private message and I can get you some names.  As a banker and real estate investor I know a lot of people who would be happy to work with you.

If you aren't having luck with a local bank you could try to find a slightly larger regional bank that has a presence in both markets.  

Most lenders will want to be in a first mortgage position to put a line of credit in place on investment property. A small to medium sized local bank is always a good source to try first. I think it is important for investors to form a relationship with a lender who understands their business model and can help them as they grow their real estate portfolio. If you spot an opportunity it is always easier to move fast if you have a goodknowledgeable lender in your corner. It is nice to save a few basis points here and there but it is even more important to be able to seize on a good opportunity where you can make real money and have confidence that your lender can perform for you when you need them.