All Forum Posts by: Cory Pflipsen

Hi Tyler, as some mentioned above, I'd also recommend looking into the "Millennial Real Estate Investor Group" on Facebook. Great spot to network and stay up to date on the Twin Cities investment market. There's also a Real Estate Investor Social you can find on MeetUp.com to meet other investors. (Typically at a local brewery) Feel free to send me a message if you wanna connect one day.  

@Steve Donovan Thanks for the encouragement! I'm still new but have high goals for myself! Even in todays market I still had a chance to find a good deal that penciled out :) Just gotta be patient! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase Price: $385,000

25% Down Commercial Loan

Past Rents: $2,950/mon

Updated Rents: $3,350

Side by Side Duplex. Both kitchens and bathrooms updated in 2018 with all new cabinets/appliances/etc. New Water Heaters in 2019. New roof in 2020. New Furnaces in 2021. Found out sellers wanted to sell and I made an offer $40k lower than market value for off market and save them commission. Seller agreed to take my offer, plus fix main sewer line sag. So pretty turn key property. Both unit leases were up and I raised rents $200/side.

What made you interested in investing in this type of deal?

turn-key and everything like new. Also below market rents in place with leases ending soon.

How did you find this deal and how did you negotiate it?

Property Management Company

How did you finance this deal?

Commercial loan with 25% down. Commercial loan was over 1% lower than conventional rates at the time.

How did you add value to the deal?

Raised rents.

What was the outcome?

Rental income was $2,950/mon. I'm not bringing in $3,350/mon.

Lessons learned? Challenges?

Shop around for financing. Commercial isn't always higher. Also be patient. The right deal came my way in 2022.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $385,000
Cash invested: $99,000
Sale price: $385,000

Side by Side Duplex. Both kitchens and bathrooms updated in 2018 with all new cabinets/appliances/etc. New Water Heaters in 2019. New roof in 2020. New Furnaces in 2021. Found out sellers wanted to sell and I made an offer $40k lower than market value for off market and save them commission. Seller agreed to take my offer, plus fix main sewer line sag. So pretty turn key property. Both unit leases were up and I raised rents $250/side.

What made you interested in investing in this type of deal?

turn-key and everything like new. Also below market rents in place with leases ending soon.

How did you find this deal and how did you negotiate it?

Property Management Company

How did you finance this deal?

Commercial loan with 25% down. Commercial loan was over 1% lower than conventional rates at the time.

How did you add value to the deal?

Raised rents.

What was the outcome?

Rental income was $2,950/mon. I'm not bringing in $3,300/mon.

Lessons learned? Challenges?

Shop around for financing. Commercial isn't always higher. Also be patient. The right deal came my way in 2022.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself

Investment Info:

Single-family residence buy & hold investment in Saint Louis Park.

Purchase price: $275,000
Cash invested: $11,000

Purchased with conventional loan. Moving in with a friend who will rent from me for $750/mon. Gutted/reno'd bathroom and should rent for $1,950+/mon in the future. (PITI is currently $1,600/mon)

How did you find this deal and how did you negotiate it?

Walking my dog saw a Realtor walking out of the property. Asked if it was going onto the market. She said it was that afternoon. Got a showing time scheduled, made an offer same day (before multiple offers came in) And got it for asking price WITH inspeciton. (rare in this pandemic market)

How did you finance this deal?

Conventional with 5% down.

How did you add value to the deal?

Gutted and updated bathroom. Converted to Dual Vanity, new tub/surround, toilet, walls, etc.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor for my own purchases.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000
Cash invested: $11,000

Purchased with conventional loan. Moving in with a friend who will rent from me for $800/mon.

What made you interested in investing in this type of deal?

Needed another property to continue towards my goal of 5 properties in the next 8 years.

How did you find this deal and how did you negotiate it?

Walking my dog past it I thought it looked like it was getting ready to be listed. Looked on the MLS and was hitting market the next day.

How did you finance this deal?

Conventional. Used my Realtor Commission towards downpayment. So only $11k out of pocket.

How did you add value to the deal?

Realtor Commission. And flipped Bathroom.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor

Mirroring what @Evan Kraljic recommended, Jeff from Home Renovision on YouTube is my favorite DIY videos. He does a GREAT job explaining things and also doesn't do patch/cheap jobs. So I feel I'm learning the RIGHT way to DIY, not jimmy-rigged fixes. 

I'm currently doing my 1st bathroom renovation and hired a 22yr old neighbor kid who just graduated Tech school to help. I am paying him per hour, but it's still way less than a contractor/professional. Besides saving some money, I'm also learning along the way, so hopefully I can do my next bathroom myself. (however I'm realizing having a 2nd hand is nice) This could be a good option to get some more affordable labor, yet still have someone who has a technical background help. Reach out to local Tech schools and see if anyone is looking for part-time/side work. Just a thought. 

@David Barnett our company is located in the western suburbs of Minneapolis (Hopkins to be specific) So naturally with google searches using geographical locations, a lot of our clients do find us due to proximity of our office. (Maple Grove, Plymouth, Wayzata, Eden Prairie, Saint Louis Park, etc.) However we've been seeing a lot more interest/calls/doors coming from the south metro. (Bloomington, Richfield, Shakopee, Eagan) 

And I'd agree prices are a higher here compared to other areas of the Twin Cities. However, they're very desirable locations and I'd assume prices will continue to go up for both Home Values and Rent.  Maybe people are starting to look south metro vs. west due to the price difference. Lower $/sq' averages. Just my 2 cents. 

@Nick Scullin, I use to look for deals in the city thinking it's where the renters want to be. (but that was based on my point of view as a young single business professional with no kids who rented) I recently started working at a Property Management company here in Minneapolis (@Bill B. love Tonka Bay and laughed at the Tonka Truck analogy!) and we specialize in managing properties in the Suburbs. (SFH/Multi/Townhomes) It has definitely made rethink my investment strategy.

The properties we manage do have a higher price tag, but that comes with higher rent price and therefore tenants with higher income levels. Benefit we have here in Minneapolis is there are lots of Fortune 500 companies (Target, United Health, Best Buy, 3M, General Mills, Polaris to name a few) who hire corporate employees from around the US. They move here for work, rent a few years in the burbs, see how their career path plays out and either buy/rent/move home. And like @Jonathan R McLaughlin mentioned, schools here in the suburbs are higher quality. So many families look to rent in the burbs for that reason alone. 

Minneapolis Suburb market could be different from Philli, but I'd for sure analyze a few deals. Might be surprised. Search for good Schools, Corporate Offices, and good city plans. I've called suburb City Planning offices to see if they have plans for new shopping centers/main street clean up projects coming over the next 5-10 years. If they're investing in their city, I'm interested.