All Forum Posts by: Hank Walter

@Cesar Gomez Read every book and article you can, start networking, and create a financial plan to prepare for your investment. Check out the excel spreadsheet on my page, it looks at 25 low cost markets and compares them across 15 different metrics. I’m happy to answer any questions.

Follow the numbers, coastal cities are seeing an exodus of people and a decline in rents to keep tenants who are still in the area. In the Midwest, cities are seeing increased populations and rents. The evictions are still lagging in most places though.

Lots of people are looking for their own space (house with a yard) now compared to being stacked in a high rise.

Follow the numbers, coastal cities are seeing an exodus of people and a decline in rents to keep tenants who are still in the area. In the Midwest, cities are seeing increased populations and rents. The evictions are still lagging in most places though.

Lots of people are looking for their own space (house with a yard) now compared to being stacked in a high rise.

@Adam Tafel

Identifying which corner will out perform one another is our next step in the process. We’ve picked our winners, now selecting neighborhoods and analyzing the trends within our selected neighborhood.

We’re currently reaching out to build our team in the areas.

@Oren Kachel

A variety of different sources, but used the same sources throughout. DM me and I can go further in-depth.

I've done some bigger commercial real estate appraisals in the Payne-Phalen area and have spoke with several owners. They all have security cameras, nicer locks on their entrances, but nothing else as an extra precaution. They rarely experienced break-ins but did have some minor loitering in the area. The area is not as rough as it may seem, East Wheelock Parkway is goes right through there and right off the beach and golf course. I do not frequent the area but have done enough work there to give my two cents. 

I've learned to accept pets as I've found it's really all about the owner of the animal. The owners are the ones responsible for making sure the animal is properly trained and taken care of. I had a former tenant who spent most of her time sleeping and at friends houses, the poor cats always had litter all over the floor, feces in box, and paw prints on the walls. She also thought putting the cats food and water on the carpet would be a good idea rather tile floor inches away... Screen for common sense. 

I had to replace all the carpet due to smells and stains and re-painted the room to further eliminate the odor, former tenant refused to pay and blocked communication from me to her to avoid the payment. 

Hi Darson, 

I currently have one investment property in North Minneapolis that is going rather well and I get to live in it for free. I'm looking to diversify markets and find some emerging markets. 

For Example: Brownsville, Texas is home to Space X, which is in the process of attracting top talent into the area, and LGN Companies has a large presence in the area and is expecting to add thousands of jobs and a probable $35 billion in capital improvements expected in the city. 

I'm working on a broad analysis of 25 markets to ultimately select a top 3 to do a deep dive market analysis on. Below is an explanation of three things in the chart and two questions that I believe could improve my analysis and figure out a top 3 faster. I chose these markets because they have a lower barrier to entry and in my opinion more value add potential compared to my home market of Minneapolis, MN. I'm looking to purchase either a SFH or Duplex with some value add potential and to hold for 5-10 years. After I target a top 3, the plan is to read through each city's CAFR for details about their economic status currently and future projections, financials, and statistics. Once I feel comfortable with the cities, I plan to establish a working relationship with contractors, wholesalers, and property management in the area. Finally select roughly 10 properties (at least) to visit with a realtor and contractor then submit bids for the property.

- Top 5 for each category are highlighted green

- Worst 3 for each category are highlighted red

- % +/-Average is the percentage difference between the the city median income and the U.S. National average

Does anyone have any advice on additional analysis sections?

Has anyone had consistent and long term (5 - 10) benefits from a certain area or an area to completely avoid? 

DM if you would like the excel file. 

The tenants mentioned are friends of mine and this is a live-in rental that I am working the BRRR on. On a mix of Rehab/Rent. Plan to Re-fi after upgrades are complete and market is sound again, then use Re-do money to upgrade to a small apartment (4-8 units) and use this as my headquarters and live with real estate friends. I know I'm missing on insanely low rates but only purchased it back in 9/2019.

Update on the Property:

- Originally moved in 3 tenants (A, K, and A1). Tenant A1 moves in, signed lease after reviewing it the night prior.

- Tenants A & K are boyfriend/girlfriend and essentially have the entire basement floor. A & K have two cats that I have met many times prior at their previous residence. After consulting with their lawyer (no idea why, standard lease), they wanted the pet section more specific and didn’t sign yet. After I a week I had finished the revised copy and let them review. I presented two copies of lease, one for me one for each of them, they took their copy but never signed either. After 8 or so months they run into relationship issues and tell me they are moving out, since they never signed basically forced me into a “month-to-month” lease. Tenants A & K neglected the litter box and cleaning it. Tired of their cats and their smells/stains and avoiding my lease, I presented them with eviction notices. It worked well for me as I already have tenants to fill the space. During the tear out of the room for updating after a tenant turnover, I discovered the cats had ruined the carpet leaving stains all over. Currently in the process of charging the proper costs for damages. Tenant A & K are upset at the cost to re-do one room and do not believe it was their cats to do so.

- Bathroom Addition Project: Costs are close to 10k. I have added a shower, toilet, sink, labor, and a brand new stacked washer and dryer pair. Functionally it works, but it is not primed/painted yet.

-Bedroom Addition Project: Costs are approximately 750. Put up a wall with studs and drywall.

- Kitchen: Added spot for dishwasher and installed new Samsung dishwasher and a garbage disposal. Adding cabinets with overhead microwave still.

- Upstairs: Adding new flooring upstairs soon.