All Forum Posts by: Bruce Runn

@Timothy Woolery

What is your question?  I have done numerous conversions.

@Julie Marquez- I only recently read through the rest of the comments so thought I'd respond.  all of our properties are within 4 miles of my house but 80% are within 2 miles.  I currently own 15, 2-4 unit buildings, one daughter/son in law own 5, and the youngest daughter owns 2 and looking for her 3rd.  

I'll continue to say, there are still deals out there to be had. You just have to work harder/find ways to create the opportunity to increase cash flow. I know someone that just closed on an off market triplex that has a great cash flow. I bought a 4 plex 2 months ago off the MLS that we did a meet up at that has an amazing cash flow off. You just have to be ready when the opportunity comes up and go into a properties to find the upside.

@Alex Grullon, @Dustin Lauer

2020 Census results on apartment vacancy. It will give you an idea of upside/un met demand for cities.  

My ten year annual vacancy rate in Minneapolis averages 1/2 of 1% so it's easy to convert to real returns.

As good a place to look at cities with rental capacity based on vacancy rates

@Ben Shaw- My first advise would be to hire a carpenter to teach you how to put in a window correctly and have him put in 1 or 2.  He could do that in a day and at $55/hour you'd create a huge savings for yourself.   You can buy a replacement window for $200-$300 and put it in yourself if you have 25 of them.  The key is to learn how to do it right the first time and have the tools to do it yourself if you are even a little bit handy.

@Daniel Anshus

@Frank Hinck

I'm going to agree with Daniel. Picking $200,000 for a duplex in MPLS is a bad comparison/model as they don't exist for anything you'd want to buy that isn't a total gut/reno but as a GC, you'd be a perfect candidate to BRRR but you'll need more money for the loans. Your numbers for expenses/cash flow based on your parameters really don't fit a reasonable profit equation so I'd make sure you are working with someone to walk through different scenarios. Since you are in the industry, you have a much better up side than most.

@Kenneth Gore- I wouldn't back out until you ask a mortgage expert if you can have a VA and FHA and then you'll know your options

@Kenneth Gore

It's not really at the underwriting stage. Once you use up your FHA limit of 1, the next couple become harder since the new Fannie Mae/Freddie Mac rules now limit how many of those mortgages they are going to buy. The lender is setting their rules to optimize success/value. Because of some of the new requirements, you are seeing mortgage companies require higher down payments so they can sell those loans off as they don't want to hold any of them. There still are some creative ways, some lenders are offering loan "packages" to get a lower down payment structure but those have not rolled out in a big way. Hope that helps.

 I bought a deal that was similar.  It had 2 duplexes on a single parcel.  I had to get a commercial loan because of the two buildings and it was appraised as a 4 unit property.  So 25% down.  Got a great deal because the realtor didn't understand what she had so she listed it $100,000 under assessed value as she thought only an all cash offer was possible.  I love to buy deals where the real estate agents don't know what they are doing.  I've subsequently split the lots and refinanced to a low interest 30 year loan.