All Forum Posts by: Bruce Runn

I had two duplexes on 1 PID/property.  I rented all the units out with Minneapolis city rental licenses, just had to have a commercial loan to buy it since it was nonconforming to a Fannie/Freddie loan.

@Jason Jones

I've taught a lot of people how to do this and many have gone on to house hack a second or third place. Only limitation is you can only have one FHA at a time but I don't recommend them anyway. You can get conventional loans with low down payments as long as you have the "intention" of staying 1 year. With FHA, you HAVE to stay one year. It's the quickest way to add properties with limited down payment $ available. I have couple that I helped get going into house hacking that is buying their 7th property in 7 years and essentially used the appreciation/equity along with the cash flow from the 1st ones to buy the subsequent ones so they are trying to continue it rolling-they are in their early to mid 30's. They didn't move into their more recent ones as they had enough cash flow to just use that to buy so they didn't need the lower down payments and bought a SFH but it was venue to build their portfolio. Best success story I know.

@Alyssa Strom

I know you are an advocate but one of the best reasons for newer investors to work with an experienced multi family realtor is to have someone to do a reality check to see how their profit formula's are working or not working.  I've met with a couple people lately to show them how I do it with self management/low vacancies, and true capex costs as they were using Bigger Pocket generic formulas that would ultimately rule out buying any property.  They had every contingency in the world built in which may be good for a worst case scenario but doesn't represent what actually happens in the real world.   The biggest fallacy was that they needed to build in a management company expense.  I'm an advocate that self managing teaches you the business that you will need to be successful and it's not the great financial option as it takes such a huge portion of your profits, especially if you only have a couple properties.  I understand some people work way more than full time and they can't or don't want to attend to details of managing but it's been the pathway to our success. 

@Abraham Reddy

I'd suggest going back to people you've networked with before that own a bunch of properties in your target neighborhoods as maybe they are selling a couple of them in Spring and it would be worthwhile to see if any fit your criteria before they put them on the market?  

@Aly Brand

Location, location, location.  Train tracks/trains can kill a deal 8 out of 10 times

@Jason Jones

I get a sense of pride every week when I drive by it.  It cash flows great but as Noah points out, I get the "Brrrr" part of the equity as I put the deal together and built the triplex.  It would make money as an investment post construction but your money can go further buying older multi family properties.  We have another triplex ready for construction and are waiting for sale of a large duplex to roll the 1031 proceeds into the new project. 

@Jason Jones

If you want to connect, we can take the conversation offline. I own 16 rental properties, primarily in Uptown with 9 of them between Franklin and Lake Street. It's hard to get SFH's to cash flow as investments as compared to duplexes and triplexes so I usually point people to the multi family route.

@Jason Jones

The first thing I'd say is, it depends on where you live.  What city are you in as that will give a lot more options for people to weigh in.

@Brett McManus

We did another BIG gut/reno at the corner of 24th/Evergreen which is about 6 blocks away if you want to walk by that one.  It was another crazy, crazy duplex situation where it was essentially unlivable and we bought it back from the brink of disaster to a wonderful safe/healthy house hack and the new owners love it.  My daughter/son in law just started another build out two blocks away as well.  I assume you live close by.  

@Brett McManus

You have the right place.  About 2 blocks from Seward Coop.  Even after all these years of doing this, I get surprised when I look back at what we had to start with and what it turns into.  thanks