All Forum Posts by: Connor Mohs

@James Hamling Thanks for your comments! With that said, do you have any recommendations as to where a new investor can look to develop such property rating (a-d) specific data figures/percentages?

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@Mike Moe Thank you so much for these insights Mike! I think you bring up some great points, that said, I do have a few follow-up questions:

- In regards to the miscellaneous services mentioned, do you regularly experience other expenses falling into this category beyond the three examples you previously provided?
-In addition, while I understand that it makes the most sense to get these services individually priced out for a given property, is there an average expense percentage that you have noticed these services taking up in your monthly budget?
-Lastly, what utilities do you tend to include in your property budgets?

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This is very helpful, thank you Evan!

Originally posted by @Evan Kraljic:

For sure @Connor Mohs! The major systems to note for CapEx are foundation, electrical, HVAC, and plumbing.

For foundation, go over all the joists and exterior walls - use a flashlight if needed. For joists you are looking for anything with dry rot, bowing/splits in them, or sistered joists (shorter joist screwed/nailed into the other for support). On exterior walls, look for signs of water damage and any major cracks.

For electrical, mainly look out for old knob and tube wiring, fuse boxes for the electrical panel, and if it's a regular panel with circuit breakers open it up and see if there's any space left to add onto it, say if you want to add a dishwasher or need it for something else in the future.

HVAC - you should be able to check the year that a furnace, boiler, or water heater was installed. This isn't as vital to get during an initial showing and your inspector should make note of it if you forget it.

Plumbing - Check for old galvanized water supply lines - these corrode over time and reduce water pressure. You could also check water pressure in the units by running the bathroom/kitchen fixtures. Copper or PEX are ideal (I prefer PEX since it wouldn't freeze in the winter and bust).

Other big ticket items would be roof, windows, siding. These items you can just tell visually what kind of condition they're in, and you can ask when they were last replaced too. I also purchased a laser tape measure so I can verify bedroom and other measurements quickly.

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Hello Twin Cities Investors,

While I have developed certain assumptions that I have been using in analyzing properties in the Minneapolis/St.Paul (Minnesota) market, I wanted to start a dialogue and encourage other investors to share their input on whether they agree or disagree with my assumptions. That said, please provide your input on any and all of the following assumptions:

-Repairs & Maintenance: 10%

-CAPEX: 5%

-Vacancy: 5%

-Property Management: 10%

-Water/Electric/Gas/Garbage: $0 (Assuming you could pass on this expense to the tenants. Is this a reasonable assumption in the Twin Cities?)

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Hi Evan, thanks for sharing your experience! I am a new investor looking to acquire my first rental property in the Twin Cities area. That said, any chance you’d be willing to share this “checklist” for when you walk through properties? Would love to see some of the items you’ve learned to look for as I begin to look for my first place.

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Originally posted by @Aaron Zimmerman:

I second @Jonathan Klemm's question. Why not invest in Minneapolis and perhaps do the house hacking strategy? Your dollar will go further there. Should you need any connections, I have a friend that recently completed his house hack in Minneapolis that would be a wealth of knowledge. He bought a fixer upper and it has very strong cash flow. I'm from Minneapolis - now living in Chicago so I'm a bit partial to my hometown! Absolutely love Chicago though but a bit tougher if you're looking to go remote. I also think Minnesota has a friendlier business climate as well.

Hey Aaron, I am also an accountant and from the Twin Cities area. Currently, I am looking to buy my first rental property and was looking to house hack a multi-family unit in the Twin Cities. With that said, would you be willing to connect me with your friend? I would really appreciate the opportunity to ask questions and learn from someone who has recently done what I am looking to do in my local market.

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Hi @Donna McMenamin & @Daniel Anshus,

Born and raised here in the Twin Cities, I am a soon to be CPA who is just getting started with real estate investing. With that said, I would love to connect with you both and continue to build my local network as I begin this process!

Connor Mohs

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All Forum Posts by: Connor Mohs

Connor Mohs has started 1 posts and replied 7 times.

Post: Assumptions Used in Deal Analysis for Minneapolis/St. Paul Area:

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