All Forum Posts by: Jake Williams

@Ryan Fatturi I have noticed something similar to what you mentioned previously. I don't think you're way off. With the market the way it has been, I think that good deals are fewer and further between, but they are out there. I would recommend doing what you're doing and connecting with real estate agents in and around the area.

@Ryan Fatturi

Hi Ryan, @Evan Kraljic is correct. My wife and I own our personal residence and are nearing completion on our renovation. The plan is to get a HELOC and buy a new personal residence and convert our SFR into a rental.

I can say that the SFR market is cooling down, but inventory is still moving. Several homes in my neighborhood have/were sitting in the market for 30+ days. Homes in the $275-400k that is.

I don’t have much insight into the Multifamily scene in EP yet, but that is something I hope to learn more about. It’s hard to articulate a number, but I feel confident saying that the appreciation play in EP is a pretty solid one. We don’t stand to make a ton monthly on our rental (100-200 cash flow), but our home has gone up in value quite a bit since we bought in 2019 and renovated. Hard to say how much of that is the market, but I’m willing to bet that it’ll go up from here over the long term.

Let me know what questions you have and I will do my best to answer them!

Hey All,

I am doing some research on areas in the Twin Cities metro area and other areas further out for rentals. I am specifically wondering about the St. Peter area by Mankato. Gustavus college is in that town so I am curious to find more details on the rental market there. There don't appear to be a lot of rentals available in that area which could be good or could be bad.

Does anyone have rentals in that area?

@Jeremy Host welcome! @Daniel Anshus was spot on. There are several groups in the metro that you can join. You’re already in the game with one property so you get to skip that newbie stage everyone gets stuck in!

My wife and I are wrapping up our first project which is a live-in flip in Eden Prairie that we plan to turn into a rental and find ourselves a new personal residence. We are wading through new waters with HELOCs and other loan products to springboard us into the next one. I'd be happy to chat about our experience doing a DIY flip and getting a HELOC to utilize the sweat equity we created.

Join some REI groups and I'll see you at some meetups!

@Bruno Njowir Just what @Tim Swierczek said. There are several groups that are focused on the Twin Cities and metro area. I know there is a meetup this evening in Minneapolis and they are back to being pretty regular if you join those groups on Facebook and other social media outlets. Reach out to Tim or myself and we can share more info on these to get you involved!

@Tim Swierczek @John Woodrich Thanks for your insight gentlemen. That all makes a lot of sense. I think we just got this idea set in our mind and couldn't see why it didn't make the most sense. After writing it out here and going back and forth with you guys I see the truth of the matter. When looking at future investments it makes more sense to not complicate things by doing taxable exchanges of capital just to put that capital into the same deal. I appreciate your advice here and I continue to be floored by the value that BP brings to every member that chooses to invest their time in this community.

@Tim Swierczek I guess our thought was that we would take out a HELOC on the equity in the property (30-50k HELOC depending on ARV) to have that for future investments and then my partner would buy in, paying me the amount equal to 50% of the equity. This way we would both have 50/50 stake in the equity and I would have cash for the next deal without having to pay closing costs.

This might not make any sense and I am open to that possibility. I am still new and working to wrap my head around a lot of concepts and partnerships is something that I am trying to understand a little better.

Conservative estimate for our ARV gives us ~100k in equity. I think that our cash in the deal is right around ~45k with downpayment and renovation costs, not counting mortgage payments since we have been living here during reno. I have not tracked our cash in the deal as well as I should have since it has been a personal residence and thus not tax deductible.

Hey all! I am an investor out of Minneapolis and my wife and I are nearing the completion of a live-in flip. Our plan is to convert it to a rental and buy a new personal residence. I have been in discussions with my brother about partnering on REI and we thought that we could start our partnership by going 50/50 on this live-in flip we are finishing.

My question is, has anyone taken an existing property (100% owned by one partner) and changed the deed to include their partner and then performed an exchange of funds to accomplish a 50/50 split? What are the tax implications on a money transfer when one partner buys into a property in this manner? Are there other ways to accomplish the same goal?

Thanks for any advice!

Welcome Blake!

I am also a newbie investor and am always excited to see more people embracing RE for all the benefits it offers. What area of Minnesota are you looking at? I know several realtors in the metro and some that focus specifically on multifamily properties. I'd be happy to connect you if you're in our area.

@Sheetal Patel Welcome! 

You don't need to have all of the answers to get started. This is the best place to educate yourself and even find out how to educate yourself. The BP podcast and BP Rookie podcast are great places to start with entry level information and very valuable information. 

Take advantage of the folks above who are offering their support. BP is great for networking and getting the answers to tough questions. Find some local meetups and start networking and engaging with those people who are already doing what you hope to do. Good luck with your investing!