All Forum Posts by: Keith Linne

@Spencer Graves I flipped houses full-time from 2011-2014 (did about 30), have rehabbed houses for LTR, own value add LTR, and now work in STR as well. Also work full-time as a GC. I live in Minnetonka. Would be happy to hop on a call or grab lunch sometime to answer questions you have. Shoot me a direct message if you'd like to connect!

Thanks for the mention @Tim Swierczek.

@Meghan McCollum  - At one point, I had roughly 40 doors in Duluth. Still have 10 doors up there, and always pursuing deals. Would be happy to connect via text, phone, or email to answer your questions.

@Matt J. and I get together regularly to talk about real estate. He has Duluth investments as well, and is a great resource.

Keith

 I currently have 2 places in Florida and text my cleaners every time we get a booking, and also if someone cancels or extends a trip. Since I only have a couple of places, I like the personal rapport it builds with my team. It also allows me to note any specifics “guest mentioned x, please check and let me know what you find”.

For regular services (lawn care, pool care, pest control), we note in our guidebook that vendors will regularly visit the property. We also described frequency (weekly, monthly, etc), and how long each appointment will take on average. We also clarify internal acccess will never be given/needed unless we notify the guests prior and explain why. This approach keeps your vendors sane, as they don’t have the stress of varied schedules or trying to fit the same day and time every week (which weather, etc won’t allow anyway). It also protects your time, as you don’t need to message someone any time something shifts a bit. 

Haven't had any issues with the above approach. Would love to hear where you place is! I'm currently working through options to build an STR in the Northern half of MN.

@Jason Clemens - One major item that hasn't been emphasized yet is the setup cost for an STR. When thinking about setting up 1 or 2 properties, remember that you not only need cash for a down payment, but also to furnish and decorate the property. There is also seasonality everywhere - although MN has extreme seasonality, even Florida has low/high seasons for booking interest.

I have roughly 20 LTR doors, and I’m selling a chunk to get into STRs (closing on two in FL this month). Each is a 4 bedroom, 3 bathroom, ~2,200 sq ft. Between art/decor, kitchen utensils/dishes, furniture, linens, and all the other random items required (TVs, router, garbage cans, etc), we’re projecting close to $40,000 (per house) to get the places up and running. We’re aiming to stand out with higher end quality, but furnishing will be a major expense even if you stay as cost effective as possible.

We’re also planning on 4-5 months minimum of liquid carrying costs in case it takes a while to gain traction with bookings/interest (much different than locking a 12 year lease and knowing there is a rent obligation the 1st of each month). 

I think STRs are a great way to diversify and continue building wealth, just wanted to share the alternate view on costs/potential risk. I’m usually very aggressive and not concerned about liquidity, but I’m going to keep a bit more money accessible as we get our new market and get up and running. 

@Kelly Gatz - Welcome to BP! Exciting to hear you’re joining the investment market in Duluth. I grew up in the area (now live in the Twin Cities metro), and have been investing in long term rentals there for roughly 5 years. I’d be happy to connect, if you have questions as you get started!

@Sam Torvinen - We had connected on a deal a couple years back. Are you still in Duluth full time? Would love to hear what you’re up to - looks like lots of fun with value add apartments!

@Bruce Woodruff I’m in a group of friends who book an annual trip to just this type of property. We’ve booked yurts in Colorado (hike in only at high altitude, bring all your own stuff), remote cabins in Northern MN, etc. We routinely pay $100-$150/night, because the solitude and unique experiences are completely worth it. We (and others who appreciate these properties) tend to be very respectful of each property and always leave it better than we found it (think “leave no trace” principles). We bring all our own food, linens, etc, and typically don’t even have running water at these locations. I love the idea, and would likely become a guest as well. Like the way you’re thinking outside the box!

@Randy Bloch I highly recommend Eric McCleary with Lakeside Insurance Brokers out of the South metro. He decreased my personal insurance premiums (two vehicles, primary residence, liability umbrella) by over $1,200 annually and has done the same for multiple friends. He also placed the commercial auto and general liability policies for my construction business. I used to be with Farmer's. Eric knows his stuff, is extremely responsive, and will almost certainly save you money. If you mention me (last name pronounced Linnay), he'll make the connection! Shoot me a DM if you'd like his full contact information. 

@Roy N. It is an interesting topic. We limit use as much as possible, and I agree that non-treated wood (especially old-growth), hasn't historically shown deterioration issues. As far as encapsulation, there aren't any specific requirements in MN code. For example, mechanical rooms are often framed with sheetrock on the exterior/livable side of the walls only, and the framing left completely exposed on the interior/unfinished side. We try to fully finish walls as much as possible, and seal bottom plates, but it doesn't always happen (some clients don't want to spend the money on it, or aren't bothered by the open conditions).

I always tell clients, there's building code, and then there's logic...unfortunately the two don't always live in harmony. In Minnesota, you're required to have a ventilation/exhaust fan in a bathroom, unless it has an operable window. Who in their right mind showers with the window open when it's -30F in January? I guess there's a reason they specify code as "minimum building standards"!

@Bryan Weiss@Roy N. @Steve Babiak

Agreed on limiting the use of pressure-treated (PT) wood indoors; however, in Minnesota it is a code requirement to use green/PT lumber for all bottom plates of basement walls. Window openings are typically wrapped with PT lumber as well. Reasoning is that the slab/foundation block may expose these components to condensation over time, and the treated lumber will (supposedly) hold up better. When using PT, also be sure your fasteners are rated for such (coated, electro-galvanized, etc). Standard fasteners typically corrode over time, when exposed to the chemicals infused in PT lumber, which can lead to fastener failure.

That being said, the basements of old were framed using standard lumber, and typically have held up just fine! 

Agreed on the red guard for waterproofing plywood - solid tip there!

@Brian Leland Welcome to BiggerPockets - you're in the right place to learn everything you could ever desire regarding investing!

I'm in Minnetonka, Minnesota and work full-time as a General Contractor. I also have my MN Real Estate Broker license (though I use it almost exclusively for my own deals/market research). I started out in rehabbing (2011-2014), and after a break while starting up my construction company, got into buy and hold investing in 2018. Feel free to PM me if you have specific questions, or simply want to continue networking/brainstorming. I'd also be happy to grab coffee/lunch at some point in the future...once that's allowed!