All Forum Posts by: Mason Vitalis

Hey BP fam 👋

I'm a local investor-focused Realtor based in the Twin Cities, and I wanted to share a recent BRRRR deal I helped close that highlights why Minneapolis–St. Paul is still flying under the radar for solid value-add plays.

📍Property Location: West St. Paul
🏠 Type: Up-Down Duplex(househack)
🏷️ Purchase Price: $320,000
🔨 Rehab: Mostly cosmetic to get rid of smell and value add opportunity to finish the attic and basement
🏦 ARV: $400k-$425k comps
💸 Rent: ~$3,650/month after they move out in a year
📈 Cash Flow: ~$150/month after the move out with 5.5% CoC

Not a home run, but definitely a solid double—and perfect for a first-time property. With resources like down payment assistance, you could get a property like this for pennies up front. Thereby securing you an appreciating, cash flowing asset for almost no money out of pocket. 

Why I liked this one:

• No rent control in West St. Paul

• Light rehab and solid bones. (Surprisingly clean inspection)

• Popping area for rent growth and appreciation

The investors are househackers, and we got them in touch with a great lender to get this done smoothly. These kinds of deals are still out there, but they're going quick when priced right especially if they're on market.

If you're looking to do BRRRR deals in the Twin Cities—or just want to chat strategy—I'm happy to connect and share what I'm seeing on the ground.

Drop a comment or DM me if you want to see more examples or explore working together.

Let’s get some wins in 2025! 💪

Minneapolis and Saint Paul are both great markets for real estate investing with around 5% average appreciation for the last eight years and steady rent growth of about 3%, you really can't go wrong in the Twin Cities. But which one is better? That depends on your criteria and investment style. There are pros and cons to every market. Here's a few to consider when searching for your first or next deal. Keep in mind that some of these are subjective or anecdotal but this is at least my experience in these markets after helping dozens of investors buy in both cities.

Minneapolis-

✅ Pros:
Larger Economy & Job Market: More Fortune 500 companies and a stronger job base (Target, U.S. Bank, etc.) which attracts a younger, mobile workforce—great for rentals.
Higher Rental Demand: Urban neighborhoods like Uptown, North Loop, and Northeast draw renters, especially millennials and professionals.
Development & Appreciation Potential: More redevelopment projects and transit investments (Green Line, Blue Line extensions). Neighborhoods like North Loop and Powderhorn have seen solid appreciation.
Cultural Amenities: Museums, theaters, dining—makes it appealing to short- and mid-term renters.

Typically more inventory: It seems there's more options to choose from especially in NE, Columbia, Heights, Fridley, Powderhorn, and Longfellow.

❌ Cons:
Regulations: Stricter landlord/tenant regulations and rent control debates. Eviction moratoriums have been slower to lift.
Crime Perception: Certain areas (esp. post-2020) have struggled with crime perception and safety concerns, which may affect renter confidence or insurance costs.

St. Paul-

✅ Pros:
Lower Entry Cost: Slightly more affordable median home prices than Minneapolis. Easier for first-time investors or those looking for cash flow.
More Stable Rental Market: A bit more “family-oriented” and long-term tenant friendly. Less transient renter base = lower turnover.
Historical Homes & Character: Neighborhoods like Mac-Groveland, Summit Hill, and Highland Park offer charming homes that hold value well.
More Predictable Zoning & Rules: Compared to Minneapolis, regulations can be a little more straightforward (though St. Paul has rent control now—more on that below).

Generally Less Competition:  Especially since rent control has been the law of the land, many investors have steered clear. This can open up more room for people who are willing to deal with it. There are ways around it through self-exemptions and such.

❌ Cons:
Rent Control Law: In 2021, voters passed a strict rent control ordinance (3% cap). It’s been amended but still deters some investors.
Lower Appreciation Potential (in some areas): Slower growth in certain neighborhoods compared to hot zones in Minneapolis.
Less “Buzz”: Doesn’t have quite the same draw for trendy businesses or nightlife, which can mean slower rental demand in certain pockets.

Generally Higher Taxes: St. Paul tends to have higher property taxes, but it is very case by case for certain areas.

I hope this helps anyone considering buying investments in the Twin Cities. For those out there who already have properties in Minneapolis or St. Paul, what has your experience been like?

"Where do I find deals?"

When I'm speaking to investors this question always comes up. It can be difficult to find the right deal especially in tough markets these days. The good news is that there's deals everywhere. Not all of them are good deals and some are outright bad. It takes time to learn how to analyze properties to ensure you aren't setting yourself up for failure. My mentor always says, "No deal is better than a bad deal." 

The trick is knowing where to look so you don't waste hours of your time analyzing bad deals. Firstly, everyone says off market is the best place to go for the best deals and it certainly can be provided you do the work required to make relationships with sellers through mailers or even door knocking. Second, wholesalers can be another great source of deals. Just make sure they're reputable and aren't daisy chaining commissions. Usually once you do one deal with them, it'll be difficult to get them to stop sending you deals. This is a good problem to have. Finally, the seemingly obvious place to look is right on the MLS. You can access these listings by hiring a realtor or even just looking on Zillow or Realtor.com. I've even seen for sale by owner Propeties on Facebook marketplace.

The point is there's good deals in every market. It might take some digging to find the good ones, but I assure you that they're out there. After working with dozens of househackers and investors, I can tell you that there are deals on the MLS that are just as good and sometimes even better that off-market ones. So, what's stopping you?

I think the three places I stated above are more than enough to find your first deal and certainly the easiest for beginners. Which strategy would you like to try first?

The main obstacle beginner investors seem to be running into in the Minneapolis market is coming up with that initial down payment on the first property. It's not easy. Especially with the spring market kicking off and relatively high interest rates, it's very difficult to out save the market. This is why I am a huge supporter of down payment assistance. Many new investors don't know this is even an option, but it can be, in many cases, the answer to their biggest problem. 

Essentially if you make less than $140k per year, you can most likely qualify for some form of DPA. Sometimes upwards of $18,000! This is a major boost for those who don't have thirty grand laying around for a 5% down payment. In some cases, the down payment is even less than the DPA. That coupled with getting the seller to cover commissions and closing costs, and you could potentially get into your first investment property for $0 out of pocket. I've even seen investors who get a credit at closing. Imagine not only getting into a property for nothing but also getting paid one or two thousand dollars at closing!

It comes at the cost of basically a second mortgage with the same or sometimes lower interest rate as your primary loan. This means adding somewhere in the neighborhood of $100-$200 to your monthly payment. All you have to do is find a deal that cash flows or just breaks even with the extra expense and live in the property for at least one year. Then rinse and repeat to become the ultimate serial househacker! After four or five years you could have a few thousand coming in per month in cash flow and hundreds of thousands in total equity in your portfolio. This is when things really snowball.

Now is when you could redeploy that equity in a cash out refinance or 1031 exchange to fund your next deal. And the next and the next and so on. This strategy creates what I like to call an "equity farm", a foundation that funds your entire portfolio. And it all started with basically nothing out of pocket.

I know it works because I've seen it happen dozens of times with many new investors. It's a tried-and-true process!

Who out there is ready to take that first step toward financial freedom with this strategy?

Shoot me a DM if you'd like to talk more or get in touch with an investor friendly lender in the Twin Cities. You could also find one right here on BP through the lender finder. Just ask them about down payment assistance and see how they can help you.

In this course we will cover everything from deal analysis to property management to scaling. There will be time for questions and for any experienced investors in the room to give their thoughts as well. We aim to create an atmosphere of like-minded investors who want to help each other and grow together. Whether you are just starting out on your real estate investment journey or working on that next deal, this is the place for you!

Often, I run into people who say something like "I'm waiting for the slow winter market" or "I'm waiting till the market crashes". While these are effective strategies and good ways to get deals when they happen, they aren't worth waiting for in my opinion. Especially for those trying to save up for a down payment, and waiting for the "perfect" conditions, this can be detrimental. 

In 2020 the average price per square foot for a duplex in the twin cities was $171. In 2024 that went up about 18% to $201 per square foot.

Can you save an extra 18% in four years for that downpayment? Maybe the answer is yes. Most of us would probably say no. This is why it's better to just get into the market when you can rather than waiting. In the Twin Cities market, we're typically seeing about 5% appreciation in the small multi-family space specifically year over year for the last 8 years. This means buying a duplex in 2020 would give you about a 25% ROI on appreciation alone by 2025. That doesn't even include cash flow and loan paydown. Not to mention the possible tax benefits you could be getting.

All that to say you can almost never out save the market. Especially with the inflation we've been seeing the last few years. It's better to get in as soon as possible to reap the rewards later. Just like Warren Buffet says, "time in the market beats timing the market". Granted he's mainly talking about stocks, but I think the same logic applies here.

Now this obviously doesn't mean you should just buy any deal. No deal is better than a bad deal, but there's great deals in every market. It's just a matter of finding them! 

For those of you out there who use this strategy, how is it going? Do you have any regrets or changes you would make looking back?

Join us for our weekly coffee and cash flow event! No structure. No agenda. Just real estate investors talking about investing, finances, and life in general. We aim to create a community of investors who want to learn and strategize together. If you love talking about real estate, this is the place for you. See you there!

Most people see high interest rates and immediately think it's not a good time to buy. The flip side of that coin is that if you are in the market while rates are high, there's a lot less competition. You can actually get an even better deal on the front end by getting things like closing costs and commissions covered by the seller and sometimes even under listing price. 

There are good deals in every market. I am to this day finding good cash flowing deals on market that have 20%-30% CoC for owner occupants. If we're seeing those numbers while rates are high, just imagine the jump in cash flow when you refinance to a lower rate!

There are many ways to make money in real estate, but few are as relatively easy and low budget as small multi-family properties. With 5% down conventional loans and FHA loans, buying a property with two or three units can cost less than $30k out of pocket. This can be even lower with down payment assistance if you qualify. If you live in one unit and rent out the other, you can break even or even have positive cash flow. Then with the equity you build up through loan paydown and appreciation over the course of a few years you can cash out refinance and use that money to snowball into another property. After doing this a few times, your properties can basically pay for themselves. This process can continue almost indefinitely until financial freedom! You can grow your initial $30k investment into a multimillion-dollar portfolio. If you are just starting out in real estate investing, go get you a small multi-family property!

Welcome to BP Alivia!