All Forum Posts by: Derek Dickinson

I'm actually based in NY currently though hoping to move back out to the MSP area in the next year or two. It's a long story but the short version is that I currently have a lease on a property that I lived in for a few months before realizing I needed to return to NY for a family emergency. I'd like to keep the property since I'd love to move back there someday but obviously can't afford to be paying the lease long term while still living in NY. I'd like to hear from Twin Cities investors who have experience in short and mid term rentals to help assess the viability of renting the place as an arbitrage rental. The landlord is open to me using it as a short or mid term rental but it's not an ideal size and type from what I have learned about this asset class. But I'm also not necessarily needing to make a big profit on the place. Simply being able to hold onto it would be very valuable to me if I can offset my costs reasonably well. I know it would mean making an initial investment to furnish the place fully (most of what I own I moved BACK to NY) but if I can cover the rent/utilities and be making a little bit back to start paying off the initial investment I would consider this a huge win. Also open to partnering with someone who's experienced in this area if you'd like to discuss further.

The home is much more suited to families than a typical short/mid term rental. It's a nice but not lavish split level 4br/2ba with a nice sized kitchen and living rooms on both floors. It's on a huge grassy lot (1/2 acre) with a driveway and 1.5 car garage. It's in a quiet, family oriented neighborhood. It's technically in Plymouth but it's right next to the border of Minnetonka and also very close to Wayzata. If you know the area it's right near the intersection of where 394 intersects with 494 (only a couple minute drive before you're on either highway), so convenient commuter access is a big plus. Feels like a better mid term rental that short term but not sure if even that is wishful thinking. 

Would love the advice of anyone who knows this market. Would like to hold onto the place if possible but really don't want to sink a bunch of money into the place only to determine that it's just not a viable short/midterm rental. Really appreciate any advice you may have or any direction that you may be able to steer me to connect with people who know more. Thanks so much for reading 

Thank you Meghan! Excited to be here and eager to connect, learn and grow.

Appreciate the info Shawn. That doesn't surprise me about NJ, knowing what I do as a person who's lived in the tri-state area for 25+ years, especially since becoming a father and coming to truly appreciate what NJ has to offer offer. Hope to be in touch

Hi BP community!

I'm a former general contractor and cabinet maker based in New York City. I currently own (and property manages) one investment property (2 family rental). Originally from the Bay Area but have lived in New York City for the past 25+ years. I have a job that also affords me a lot of spare time in my schedule and I'm looking to use that time to begin/continue/grow a real estate portfolio. I'm really hoping to make some connections and work with and learn from more experienced investors in the community. The strategies I'm most interested in are Flips, BRRRRs, small multifamily as well as short/medium term rentals. I feel my skill set, with an extensive background in project management, estimating, and renovations, makes me well suited for REI and I am eager to start taking steps to transition my career to this industry. Not at all looking to stay strictly in the NYC area; have been looking around at markets in Long Island, Upstate New York, New Jersey, and the surrounding region. Would appreciate any advice you have on places to get started, where to make connections, steps to take. I've been watching/listening/reading BP content for almost 2 years now and need to break out of the analysis paralysis phase (of REI in general:) and truly get started taking steps into this industry. It's time for connections, challenges, and progress.

Investment Info:

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

Purchase price: $990,000
Cash invested: $350,000

Purchased this home with my former partner back in 2018 and we put 200k down. It's a 2 family home in the Ridgewood neighborhood of Queens. We purchased it with the intention of living in the Ground floor + BSMT apartment and renting the 2nd floor apartment. Initially we did a light renovation on the rental unit and a larger renovation on the 1st floor. We completely gutted and finished the basement including adding a kitchenette and 3/4 bath, moved out and are now renting both apartments.

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

As a contractor and cabinet maker it made much more sense financially to purchase a home with a rental unit and manage the property myself.

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

Found it through a broker on the market. Asking price was 1 million but was by far the best deal we had found in the same price range. Had to negotiate to 999,000 only to stay under the NYC luxury tax.

How did you finance this deal?

20% down, mortgaged the rest through a local bank

How did you add value to the deal?

Renovation work throughout both apartments, gutted and refinished the basement as well as extensive work in the private backyard. Replaced all the windows in the building, insulated the attic and redid the front stoop and cellar doors.

What was the outcome?

Currently renting both apartments for a average monthly cash flow of $1000

Lessons learned? Challenges?

Wish I had done more renovation work upfront before moving in. Wish we had done more market research before renting the 1st floor apartment to friends of ours. We priced it significantly below current market value and could probably be getting at least another 500-1000 a month more for the unit.

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

Unfortunately not.