All Forum Posts by: Franchesca Ramaker

I increased the expenses to 10% for Vacancy, Capex & Repairs and redid using the BRRRR calculator. Here is the link https://www.biggerpockets.com/calculators/shared/3...

@John Knisely Thank you for the reply! I appreciate the advice. And yes, I think being conservative is better, especially in the beginning.

Hello BP,

Thank you in advance for any input and advice. I'm trying to get into my first rental property, but with the market hot and prices high I haven't been able to find anything where the numbers work. I use BP's rental property calculator, which is fantastic. I finally found a SF property for $50,000, which seems incredibly low, in a B/C area of St. Paul, Minnesota. This seems like a no-brainer, and when I drove by the property I saw others touring it (first day on the market). When I run the numbers, however, I only come out with a $40 monthly income. I plan on using the BRRRR strategy.

Purchase Price $50,000 cash
Repairs $30,000 cash
Estimating $500 for closing costs
4B2B 1323sqft SFH
Income $1100/month

Expenses
Taxes $57
Insurance $90
Water/Trash $150
Vacancy 5% $55
Capex 5% $55
Repairs 5% $55

Net Profit of $638/month
If I refinance and get a loan for $80,000, PITI is about $600/month.

This is the link to the BP report I made. https://www.biggerpockets.com/buy_and_hold_results...
Any advice or corrections on my numbers is greatly appreciated!

Thank you!

Have you considered a fixer-upper? I agree that buying a box house isn't a great investment idea, but even when a recession hits people will want to live near the cities. If you could add value to an older home in an established suburb like West Bloomington or Edina and are planning on staying for the long haul, you'd be able to ride out pretty much any dip in the market.

Before you turn to hard money, have you looked into private investors? You'd be surprised at how many of your friends and family have money in the bank making almost no interest that might be willing to lend for 4 or 5%.

Be active on BP! That's the best place to start for advice. I'm also looking at MF in the area and it seems like NE, St.Paul, and the north suburbs have lower prices that might cash flow, but definitely older homes. More information, like price point or area you are looking in might help to get more accurate responses. If you don't already have a realtor, Kari Lundin is The Duplex Chick (Google Duplex Chick) and Connor Hesch is a banker (he's on BP, too) that works with and is an investor. Hope that helps and good luck!

Welcome to Minnesota! We are looking to do the same in the Twin Cities area and are finding it hard, but not impossible to find properties that cash flow. I would suggest northeast Minneapolis or St. Paul for cheaper properties and maybe a fixer-upper. Everything is going pretty fast, however, so be ready to jump on any good opportunity. I'm finding that duplexes are just too pricey for cash flow so we are now looking at SF homes to fix up and rent. Good luck!

Thank you for all the great suggestions​! I will definitely​ contact​ Xcel for more info.

Hello BP,

In starting to analyze potential deals, I've run into my first big question. In Minneapolis or Minnesota, who pays the utilities? Does it vary based on SF, duplex or apartments? If it's the landlord's responsibility, what are the average costs? Any advice from Minnesota landlords is appreciated! Thank you!

I'm also looking to buy property in the Minneapolis area and feel like everything is too expensive right now to make the numbers work. However, this thread had great responses that will help with evaluating future deals. I'm in the same boat, so, good luck!