All Forum Posts by: Bryant Amundson

Thank you all for the great feedback. The city pulled all permits and any documentation related to our space to find the payment and did not find anything. They have updated their system from physical documents to a scanned document management software and we are not guaranteed that all documentation is accounted for. SAC and WAC started in 1973 and this coffee shop started after that date, meaning the SAC and WAC charges should have been enforced in the 90's for the coffee shop. Our struggle is that since the city or met council don't have records of it not being paid then it is their fault for not enforcing the charges on the buildout of additional sewer and water lines. Our landlord was unaware it wasn't paid and told us we should have left over credits because there are more lines in the space than our business actually requires.

If anyone is an experience commercial real estate land lord and would like to shed some light on this situation, we would greatly appreciate it.

Hey all! My wife and I are opening a business in Minnesota and are running into an interesting hurdle with the required SAC/WAC charges. The situation is unique because our acai bowl store does not require any additional sewer lines than are already present. There are actually more lines in the site than we need. These lines were added to the site in the 90's, when a coffee shop took over the space. According to the City of Minnetonka and the Metropolitan Council, there is no history of these SAC/WAC charges being paid for. We are now being told we have to pay for 2 sewer lines, which is equating to $10,674.22 total charges. Being it was the coffee shop tenant who did not pay/got away with not paying this, we are struggling to understand why the massive fees are falling on us at this time. We would love additional wisdom/advice/council from anyone who is knowledgable on this SAC/WAC issue. Our network has all agreed that there is no way we should have to pay this fee because when the landlord bought the building, he took on all current tenant's liabilities, etc., so why are we now having to pay for the previous tenant's charges? To us, it seems this should be the landlord's responsibility, as the SAC/WAC payments stay with the building forever and do not "expire" and are used as credits for future tenants. We are certainly taking the space "as is", especially because we do not need to add any additional lines to the space "as is". They're saying we have to pay for the prior years it was not paid.

We are working with a major deadline here and need as many second, third opinions on this topics as we can get. Thank you for reading! Looking forward to hearing what you may have to say! 

Very handy right now! Thanks!

@Jay Dewberry, how are you seeing $450? Is that just with proper PM rates?

Here we go:

I am analyzing a Duplex in Orono, MN. 55331.

It is a side by side 3 bed 2 bath (2732 total sq ft) with a 2 door garage, on a street with a neighborhood "private" beach at the end. (so it is very close to the water)

My plan is to live in it with my wife for 1-2 years.

I don't know what it is currently renting for, but the market is at about $1800 for a 3/2.

So yes we would house hack.

Income: $1800 coming in for rental income.

Expenses: 
P&I $1632
Property Taxes $275.83
Insurance $100
PMI $100
CapX $108
PM $108
Maint $108
Vac $108
Water $50
Electric $50

Total $2,639.83

Also, water is probably not sub metered. But electric might be. Will find out soon.

Asking Price is $360,000
Going to owner occupy, 5% down

So, my wife and I will be paying about $800ish dollars per month while living there. Then when we move out, we should be able to cashflow $1,000+ per month!

Sounds pretty sweet right. I likely will be pulling the trigger unless something comes up in inspection.

Am I missing anything? Or are there other things to consider? 
IF you were me, would you pull the trigger?

Thanks!

I am so down. I live in Excelsior with my wife. For me it might be a biweekly scenario, but I would love to get together.

Here is the link.

Identical side 1 bed 1 bath duplex. for $189,000. 1 bed 1 bath rents are between $650-$900. This property is closer to the water.

Currently has a tenant, do not know condition of unit until after purchase agreement.

Any red flags beside that, or is this just simply not that good of a deal?

Let me know!

http://www.realtor.com/realestateandhomes-detail/4...

@Camron Cottam, love that. Yes, so true, gotta keep a few exit strategies in the holster! I'm currently working through it with a contractor and running the numbers to see what is the best possible investment. I'll keep you updated if anything crazy comes up with this one.