All Forum Posts by: David B.

Hey everyone I'm an investor in the UPPER Midwest as well :) Located in East Grand Forks, MN. Always happy to expand my network, so feel free to reach out.

@Tim Swierczek nice to see you on this thread. Hope all's well.

@Trevor Schmitt looking forward to connecting with you soon!

2 Votes

Fargo, North Dakota

Investment Info:

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

Purchase price: $150,000
Cash invested: $40,000

Buy and hold triplex in rural NE North Dakota.

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

investing for cash flow and long-term appreciation (forced and market). Units are distressed and will make incremental updates naturally during tenant turnover.

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

MLS

How did you finance this deal?

conventional 30-year residential investment loan

1 Vote

Hello-

I am under contract on a triplex in North Dakota and am a Minnesota resident. I am planning to hold the deed with an LLC wholly owned by my spouse and I. I am wondering if anyone can offer insight on whether or not my LLC needs to be incorporated in North Dakota. My preference would be to LLC in Minnesota so I don't need to mess with "registered agent" and filing business taxes in a new state. However, I know that sometimes states require that business conducted (rent from tenants, in this case) in their state needs to run through an LLC that's been registered in that state. I cannot find anything about this for North Dakota, specifically.

Thanks in advance for your help.

0 Votes

Investment Info:

Single-family residence buy & hold investment in Saint Paul.

Purchase price: $345,000
Cash invested: $60,000
Sale price: $475,000

Live-in Flip / House hack
Primary residence, finished basement into rental unit which rented for $500/mo.
Sold in June 2023 for: $475,000

2 Votes

Quote from @Jeff Schemmel:

@David B. my point of view on this is that your ROE (return on equity) of 1.3% is not very good at all on this property - I can immediately recommend a high-yield savings account that could double that return.

Have you lived in it for at least 2 years? I would get multiple opinions of market value, and which comps (recent sales) are useful - really get a dialed CMA to make sure your valuation is on target. I would even go so far as to get a "net sheet" from a realtor. That net sheet would lay out your actual estimated proceeds to ensure you have a real idea of your actual ROE. $150/m cash flow ($1,800/yr) (in my opinion) is just not enough to be worth holding, especially when you're that far away. I am also of the opinion that now is not a good time to be over-leveraged with a heloc; the only way I'd recommend using one now is if you're doing a 3-6 month project that will return the cash needed to pay it off in that time frame and your return on that venture would be worth that effort. The buyers in this market are going nuts for a great house, that's also worth mentioning. I lost count of how many multiple-offer negotiating circumstances I've been in in the last month - we're back to multiple offers and appraisal gap covers and pre-inspecting.

If you care to share your neighborhood, or if you want to chat more about anything I shared please feel free to DM but based on what you shared I would lean towards selling. Appreciation is speculative, and if your ROE was over 10% I might change my opinion here but I'm pretty firm.

Really helpful, Jeff! Thanks so much.

0 Votes

Saint Paul, Minnesota

Hello- my wife and I are moving to Grand Forks, ND this summer and trying to decide what to do with our primary residence in Saint Paul (SFH, 6BR w/ 2non-conforming, near several universities). I currently have a HELOC on it to make down payment on our next primary, so we don't need to sell. Following are a few details on the property and can provide more if needed. On one hand I want to hold it since we have 3.5% interest rate in a highly desirable area which will continue to appreciate, but on the other hand I think we could leverage the equity into something in Grand Forks and save money by self managing and doing most repairs myself which wouldn't be an option if we held this place. Thanks in advance for any thoughts/advice/opinions.

mortgaged amount: $305K

market value: $450K

monthly rent estimate: $2,800

monthly cashflow estimate: $150

0 Votes

Saint Paul, Minnesota

@Jordan Moorhead Total basement remodel to add 800 sqft of living space including 2 BR and 1Bath, added A/C throughout, added privacy fence (it's on higher traffic road), new roof. I think it's conservatively worth $520K now.

1 Vote

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $345,000
Cash invested: $60,000

Live-in Flip / House hack

3 Votes

Investment Info:

Single-family residence other investment.

Purchase price: $245,000
Cash invested: $10,000
Sale price: $294,000

Live-in flip

0 Votes

Quote from @Raymond J. Rodrigues:

Hi @David B., I recommend you get in contact with @Nicole Shaw. She’s helped quite a few of my clients in the Pinellas county area acquire rental properties. I hope this recommendation helps!

Thank you! Will do.

0 Votes

Tampa, Florida

All Forum Posts by: David B.

David B. has started 8 posts and replied 12 times.

Post: North Dakota / Minnesota investors

Post: Buy and hold triplex in North Dakota

Post: Question about LLC for Real Estate Holdings - incorporation state ND or MN

Post: Live-in Flip and House Hack in Saint Paul, MN

Post: Looking for advice - sell and cash out equity or hold and rent?

Post: Looking for advice - sell and cash out equity or hold and rent?

Post: Live-in Flip and House Hack in Saint Paul, MN

Post: Live-in Flip and House Hack in Saint Paul, MN

Post: Live-in Flip in Burnsville, MN

Post: Looking for local advice - Pinellas County, FL