All Forum Posts by: David Barnett

@Tucker Walser Hopefully this link answers all of rental license questions in Minneapolis.

http://www.minneapolismn.gov/inspections/rental/index.htm

@Nicholas Alves Welcome aboard!  By any chance, are you looking at the Soft Second loan program?  For those just starting out in their careers, it could be a program that would fit (income guidelines, etc.).  I used the Soft Second mortgage program for my first purchase, and it's a good way to get into a property for relatively cheaply.

If you are investing in Minneapolis, a rental license is needed.

@Nick Barlow She's looking for a traditional mortgage, and my guess she has something in her history that doesn't comply with the checklist.  Sure, she could go commercial or portfolio, however, terms are generally not as sweet as conventional, conforming loans.

As others have mentioned, I would work on fixing the issues that are preventing you from securing bank financing.  In my opinion, bank financing especially in this market is the best way to buy real estate.  I would continue saving while you worked on fixing the bank issue and then invest in a slightly better asset.  It is admirable that you've saved $10k, and think of the additional funding that you could save to be in a more secured financial situation.  You wouldn't want to spend all $10k and not have any sort of reserve in case stuff happens (which seems to be 100% of the time when you leverage yourself too high).  

@Clayton Bourgeois My understanding of FICO is that if the inquiries are within 30-45 days of each other, it will count as ONE credit inquiry.  Hard credit inquiries only affect the credit score by a few points (not a big deal).  It's safe to shop around.

As a follow up to Scott's it depends comment (he's 100% right), what does your financial position look like?  Are you able to withstand capex or negligible cash flow for an appreciation play?  Pure appreciation plays are more risky. 

I invest out of state and have had pretty good success.  If you do decide to invest out of state, I would also recommend visiting the area.  I would recommend physically walking the area to get a sense of the area and focus on a relatively small area within that area to understand street by street.  Networking is a good idea.  However, I'm more of the type that wants to see, feel etc. for myself while using others opinions as another data point in the puzzle.  

@Mark Cruse I think you missed Kimberly's point.  She is concerned with the government dictating how she runs her business.  Yes, trashing can occur with any tenant and is a calculated risk each of us take when we rent our house.  There is a lot more risk at higher price points (potential loss is much higher at higher price points).

I tend to stay away from section 8.

On the pet issue, I open up all of my units for pets.  A lot of landlords do not allow pets and view it as a competitive advantage to allow it.  I've also noticed that tenants with pets seem to stay longer (maybe due to the lack of options for folks with pets)?  I agree with @John Underwood that it is a good way to increase miscellaneous revenue (often times tenants will treat pets as part of their family and will pay a non-refund pet fee and/or monthly pet fees).  Good luck!