All Forum Posts by: David Huynh

Who cares if someone defines a neighborhood as crappy. Would you live in N. Minneapolis? Would your wife/significant other say "That's CRAP!" Of course!

Crappy is a definition of neighborhood for most of us. This gives investors and people that I am seeking real input from, a real answer because that's the real conversation.

I thank everyone for their input so far and will let you folks know where this deal ends up. 

Thank you for all of the input so far. I was informed from another investor to convert the units over to Section 8 and receive FMR and that would turn it into a cash cow, but the headache I'm sure.

I enjoy constantly learning and incorporating all approaches into my brain. I'll post what I decide to do it. 

@David Moore  I would say that it needs about 15k in repairs/rehab. The units are run like crap - IE large piece of rug used as carpeting. Junk inside/outside of the building. I think he has had a headache dealing with the unit and there was a fire on the garage - probably had an insurance payout and is looking to dump it

@Tim CampbellIt is offensive, instead of calling it crappy, it sounds like it is a C class neighborhood - with toys and junk inside/out and marijuana activity. 

Do you know what fair market rent is? $850 for a two bed/1bath? 

Hey BP,

I need some assistance from locals and others on a possible deal in Brooklyn Park, MN.

First, I'd like to state what type of investor so you can better understand my background and goals. B&H multifamily in A or B class neighborhoods with a value add strategy, I LOVE cashflow (as we all do) but will walk a way if the numbers make financial sense due to headaches.

There is a 4plex near 694 and 81 by the CarMax and bus line that that another investor is looking at selling. He purchased the property in 2011 for 220k and is wanting to sell to me for 235k (garage burnt down btw). 

Ask - 235k

Rents - $3000/month

($750/unit)

Cashflow - $750-800 (or what people say "7 cap"

(4% vacancy, 4% capX, 8% property management, and etc)

Here's what I'm looking for assistance on -

Is this neighborhood crappy compared to other areas in Brooklyn Park/Brooklyn Center? B, C, D class?

Are rents currently under market? FMR seems to be $875-900 (units need work)

Would you convert this into section 8? (FMR - $1067 approx)

Can ANYONE else find a four plex under 300k?

***I KNOW one tenant defiantly smokes the green and I know another pays cash (never timely) and I feel like I'd have to flush everyone out and find all new tenants. What would you do onto of all this?

I'd love to do the deal, but don't want to buy a headache unless the long term potential is there OR I could add value and sell it off. Again, I typically do not invest in these types of neighborhoods but at the same time the deal seems to be a deal (price wise).

All/any input and feedback are appreciated.

David H.

Hello everyone,

Recently we had a newborn and I don't know how to approach this situation - I'd like to know everyones thoughts on a child education savings plan. 

Do you have a 529 plan?

Do you have a solid B&H property that you'll say "that's my childs property" ?

Do you max out in your IRA and say if needed, you can draw the original out of pocket invested amount (5k/annually) and use that?

Do you just say "F-That, I'll have created so much wealth and + cash flow, I don't care"

I'd love detailed and knee jerk resposes.

David H 

Hey everyone, My fiancé and I were talking for the past week or so what we would do if we won the Powerball and as usual, came up with a list of things mostly rational. Donating some of it Quitting our jobs possibly Spending more time with loved ones Learn to fly a helicopter/plane Pay off debt Travel more Etc... Reflecting on the list, all of these things are 100% achievable. Take charge and make the decision to live exactly if you won the powerball or take the steps towards the list of things that you would do with it. It's another way of thinking of how to live life :-) Have a great weekend!

Read a post the other day about financing a 10k used car for 2-3% and it got me to thinking about my financial situation

So - I have a student loan out for 7k @ 6.5% (which I think is high) would you pay that off or is this too, considered cheap money? What would you do?

I think it's a low, safe investment to begin learning! It might not generate a ton of cash or appreciate in value but you'll learn the ropes of real estate investing, which will be an inexpensive education vs. getting something large. Dive right in! (As long as you learn your return on investment!)

Danny Heidle Congrats you can do basic math. I bet many of the real estate investors can pass 5th grade math. How does this help him? Let's consider that angle as devils advocate.

Congrats on two successful flips! I love to hear and see people around the twin cities with success.