All Forum Posts by: Lee Fahy

Hey Patrick C. , the people at the rental inspections place are pretty great but will ding you for little things. Smoke and carbon detectors, window screens, etc but they are willing to work with you as long as you are cool about it. I’ve worked with Julie and Dan at health and inspections on my dump, they were just happy to see good work.

@John Woodrich; 

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I know this property you are speaking of, it's a side by side duplex on the east side of the river in St Cloud. Unfortunately that property is in a poor location, needs a lot of updating, has baseboard heat, and butts up to the railroad tracks. It's been on the market for a long time now. I know all this because my realtor keeps badgering me about the property even when I tell her the right number is very much 100 and not 130. Haha. 

Lee

Just my two cents here, there is a special license where you can avoid @John Woodrich point about the 3 unrelated individuals. The rental office calls it a lodging license where you can rent up to a certain number of unrelated people (I can't remember the limit). There are several of these 'lodges' in the SCSU area that are licensed for 14 rooms and it's all on the up and up. 

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I would consider calling Dan Buchholz at the St Cloud city office or directly at the Health and Inspections office (320_255_7214). 

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Most of the per room rates in the SCSU area are going for $325 (as of two months ago and they may be reduced due to demand being low with school already in session). As for analyzing the deal I would need to know more about the house itself, big difference in the maintenance and CAPEX depending on the year it was built and history of maintenance. 

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I'm with @Isaac Braun, I'm mostly interested in multi and SF homes in northern St Cloud. 

Rachel Brewster ; Ha! I’m that creeper as well. I keep a list so I can go back in a month or so to see how much was paid. I’m looking by Nokomis, south of Harriet, St Louis Park, Roseville and the NE. Every time I work in the downtown area I take a walk before I start. I have a grid in the north east (north and east of Betty Dangers) and I take notes on all duplexes that need work. I then do some creepin and see who owns them, last sold, taxes up to date? Etc. I own a duplex in St Cloud that I’ve rehabbed. https://www.biggerpockets.com/forums/522/topics/464525-investa-brothel-the-odyssey

Rachel Brewster ; how is the multifamily hunt going in Minneapolis? I’ve been seriously hunting in the metro for a house hack while my wife goes to the U but so far the market is out of control. What I don’t understand is: these people buying duplexes in Minneapolis, are they running numbers on this or just wildly throwing money after money? My numbers don’t work for any of the multifamily properties in the areas I want.

I didn't realize how bad I was at taking pictures until I uploaded these. Haha. This is the general condition of all of the units. 

Andrew Johnson ; thank you for the input. Really solid advice, especially on #2. I think it’s given my pause to consider how much more I can actually get out of the fourplex. Update: I ran my numbers and sent it to the owner showing how they don’t work unless the price is at or below $180,000. I don’t think they were well received because I haven’t heard back yet. (Asking is 225)

Jean Jost ; it’s basically just me and my wife. I did what you said and straight up asked on the roof. Seems the roof was replaced at some point in the 90s and not touched since. His boiler looks old but maintained, the manifold that splits the heat to each unit has a squirrels nest of wiring that looks like he’s done some work. The way I see it, he has a mountain of deferred CAPEX he’s trying to avoid. Roof is going to be 12-15k (includes the garage). Updating the commercial gas water heater (100 gallon), I’m sure that’s 3-4K (also older unit), and the boiler/auxiliaries will probably be needed in 5 or less years.