All Forum Posts by: Bruce Runn

@Meghan Roman-I'll send you my Minnesota real estate attorney/law firm contact that has been very beneficial to me throughout the years.  Just connect with me and I shoot off a DM.

@Kenneth Gore- That ability is gone or extremely tough due to lender requirements for higher down payments.  I know people that have gone from house hack to house hack but minimum down payments have gone up.  It's still the quickest way to accumulate properties.

@Vince Coffeen- I suggest  Sylvia Frank at Carlson Frank Architects in St Paul.  I've used them for several of my triplex builds and are extremely knowledgeable.  Additionally, before you get in too far, you should make sure you understand what you can do and can't do and they have a lot of experience in St Paul with zoning especially in the area you are located.  

Carlsen & Frank Architects LLC (carlsenfrank.com)

@Will Gaston- I'm not telling you anything you don't know but there's very little low hanging fruit out there and you have to work to get them in different ways.  I have one for an individual triplex, have an option on another empty lot, and own 3 contiguous properties with multiple lots that can be split or combined for up to a 75 unit/6 story building and in between so it's a tactic of mine to have projects in the queue and be able to hold/do something in a year or two once I clear past the capital gains timing.  Since I've held the 3 combined lots w/rentals and I cash flow them while I decide what to do including possibly selling them off individually and make my money that way since they've appreciated a lot and are in prime locations.  I just sold off a project that had a duplex with zoning/room to put an additional 2-3 units on the lot as a cluster development so we don't keep everything but make good decisions along the way.

@Colin Dingfelder

@Colin Dingfelder- I am specifically only in MPLS- Are you asking prices before covid or post covid -LOL?

Pre covid-$175 sq ft for construction for 3 and/or 4 bed/2 full bath 1250 sq ft apt's in a triplex and $25/sq ft for all soft costs-architect, permits, SAC, park fees, landscaping, and various other soft costs ect but not including the cost of a standard sized lot.

Post covid with all the increased costs/shortages-???? More expensive!!

Check out millennial investor group facebook page in Minneapolis as we will have info on a presentation I am doing next week on a recent deal

@Colin Dingfelder

I'll add that almost all of our builds and most of our conversions/renovations are for 3 and 4 bedroom places since building bigger/adding bedrooms is the best way to increase the ROI

@Colin Dingfelder

I've built triplexes and converted buildings into triplexes since the approval of the 2040 plan in Minneapolis and the equation has been great.  You have to figure out how to get a value add just like you do when you buy an existing multi family.  I.E. I've bought several properties on double lots, split the lots, renovated the existing and sold it off so I have a "free" lot.  I then build on it and have a lower cost than other people.  It takes more work, more hustle, more looking, ect ect as deals don't just drop in people laps as we all know.  I know my target areas and understand zoning/building code to know what I can do.  You have to develop the skill sets over time.  I get a premium rent over everything else in the area and rent them up fast so there is no vacancy costs/almost no near term capex.  I've also bought larger properties and did a full gut/remodel so they are essentially 80-90% new construction and they rent just like new construction, just in established high demand areas. What's not to love?

@Brady Mickolichek

It is much much cheaper to include the attic unit into the 2nd floor and make it up to 4 bedrooms.  Not quite as much rent but almost no cost so the return is much better.

@LeAnn Riley -I think you may have wanted to link this as it gives the specifics.

Conversion-to-Three-Unit-Dwelling---Common-Code-Rules.pdf (minneapolismn.gov)

@Brady Mickolichek

Yea, I cracked up too