All Forum Posts by: Tim Johnson

Hi Amanda, welcome to Bigger Pockets. 

You mentioned Central Minnesota...my wife an I live in Becker and invest in St. Cloud.  (We are focused on multifamily.) 
I've been thinking about starting a Central MN real estate meetup, but not sure what is wise during a pandemic.  

Good for you for starting the direct marketing!

Anyway, good luck on your investing adventure!

Wait, so you're buying negative 30 units (-30), getting -$875 rents and a -7% cap rate??  My head just exploded.

@Sam Edelson, I'm just giving you crap but it's easiest to understand your numbers if you don't include the '-' unless they are actually negative. :)

@James Hamling Thanks!  I had thought about the cash for keys but I had not thought about the civil suit.  Good advice!

I wrote a letter to the governor and I posted forum post encouraging people to do the same.  It may be in vain, but it feels good to do something. 

If anyone else is frustrated with the current eviction moratorium in Minnesota, I would encourage you to write a letter (as I did) to Governor Tim Walz.  It may not do any good, but the action was good therapy. 

The current State of emergency is set to expire September 11th.  I'm hoping the eviction moratorium would be reviewed at that time.

My point in the letter is that the moratorium is not needed because the people who were impacted by covid are receiving unemployment plus $600 per week.  The moratorium is creating freeloaders and leaving landlords without recourse.

Here is the address of the governor:

Governor Tim Walz
130 State Capitol
75 Rev Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155

@James Hamling Thanks, I appreciate the good advice.  It's so frustrating to have tenants take advantage of this situation.  It's infuriating, but I guess there is absolutely nothing we can do about it. 

It's so stupid that, people who are getting an extra $600 per week, can avoid paying a single dollar of rent for what will end up being more than a year....and there is nothing we can do about it. 

I'm going to write a letter to the governor.  Not because I think it will do any good, but as a means to vent.

I purchased a multifamily property in March.  I have a tenant that has not paid $1 since I purchased the building.

Minnesota is currently under an eviction moratorium.  

Her lease expired today August 31st.  The property manager informed her we are not renewing her lease.  We checked and all her stuff is still in the unit.

Are the rules different under non-renewal than eviction?  Do I have to go through the same process to get her out?  

Nice job, Andrew!  That should be a nice property for you.  $60k per unit is a good price.  If the units are in decent condition that should cash flow all day long. 

It sounds like you worked with a small/local bank.  (Normally they would require 20 percent down.)  Treat them right and build that relationship. A bank that is willing to be flexible can be a key partner many people overlook. 

Best of luck!

@Account Closed, you've convinced me.  I'm going to join you in Southern California where you don't have any problems at all.

@Account Closed I don't understand the hostility towards Minnesota investors? Minnesota's population is growing,  We currently has a population growth rate of 0.71%, which ranks 29th in the country.  So, mid-pack. I guess I don't understand your 'traffic won't be a problem anymore' comment?

If that growth is skewed towards low income, wouldn't that be an opportunity to class C properties? 

I dislike taxes, believe me.  But that doesn't preclude investment opportunity.

I often think about the saying 'Pigs get fat, hogs get slaughtered' in terms of business and real estate. I'm wondering what other people think about this quote.  When does it apply, when doesn't it apply?  

Where is the line between being opportunistic, and being greedy?  Have you ever intentionally made less money on a deal than you could have, so as not to be (or be perceived as) greedy?  

Keywords: Minnesota, Minneapolis, philosophy, pork bellies.