Hi,
I have been researching SFRs, duplexes and triplexes in South Minneapolis. The triplexes and duplexes I have seen seem to be all built around 1900s. They are essentially older than the SRFs. For now, I use www.rentometer.com to suss out potential rent. The ones I really like (price and condition of building) I run by my realtor who also comes in around the same price. I have noticed that a 4/1 SFR comes out to be pretty much the same as a 2/1 -- 2/1 duplex. Am I off base here in my assessment?
This is all preliminary thinking (pre number crouching) and so I am wondering if anyone has used any other method of getting an idea for rent (outside of actually asking for the rents)? Mind you I haven't pinned down a potential purchase yet as I am 13 months away from making offers.
Being that I am going to be an out of state owner, even though duplexes and triplexes are my preferred route for RE investment ( I own a duplex in Los Angeles), I am leaning towards SFRs where the owner will be in charge of things like water, snow blowing and general garden and yard upkeep.
I am also researching school districts as related to a potential SFR purchase. I see good school districts as a strong marketing point. Minneapolis/St Paul is a pretty high education oriented city with lots of top educational institutions. Good schools seem to really matter to parents there (as they do elsewhere). My thinking is that buying say a 4/1 SFR jn a great school district will further enhance the rentability of any 3/1 or 4/1 SFR I may purchase in that neighborhood. A good friend of mine who owns duplexes in is vehemently against SFRs but I have to consider these as an out of state owner. In my wildest dreams I would like my SFRs tenants to stay at least 2 - 5 years and so any little advantage counts.
I am told by my brother who has lived in Minneapolis for 16 years that Edina has the best school district. But my instinct is to pay 2/3rds of an Edina home price till my 3rd of 4th purchase. My realtor who also owns rental properties tells me that I will probably not have too much trouble renting a 3/1 or 4/1 in south Minneapolis. Apparently freestanding 2/1 SFRs can be looked at like Condos (without the HOA fees). Curiously, South Minneapolis has quite a few 2/1s. My thinking is that a 3/1 or 4/1 will also add to the rentability of the place.
I have seen some pretty nice 3/1 and 4/1 homes in the 124K too 179 range. I am probably going to go in with a partner (who will match my initial investment to make our pool of cash essential double). As such I have scheduled a talk with a CPA about structuring a path moving forward.
I have also found two Minneapolis property managers that came recommended by my realtor. Has anyone used property managers in Minneapolis that they absolutely love?
My research on South Minneapolis continues unabated. So far these neighborhoods have jumped out at me: Longfellow, SENA - Standish/Ericcson, Howe, Corcoran, Hiawatha, Wenonah, Morris Park, Minehaha and even St Paul which is pretty much good almost all around.
A duplex or Trplex in Edina would be a very interesting purchase but that's for down the line when I own a few buildings or should I say when I "grow up" as a RE investor.
As mentioned before, this is all preliminary tinkering thinking. I am visiting Minneapolis soon to look around and ask more questions. I'll start plugging in numbers in a few weeks when I am better armed with info.
Any and all input is greatly appreciated!
Thanks and good luck to all in your investments!
Francis
