All Forum Posts by: Michael Stutelberg

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Madison.

Second rental property as a duplex.
Converted SFR, first floor 4br and 1 bath ($665/month). Second floor 2br and 2 bath ($600/month). Utilities included.
Fully rented.
For sale off market.

How did you find this deal and how did you negotiate it?

Found on MLS 5 years ago and rehabbed during quarantine.

How did you finance this deal?

Bank financing.

How did you add value to the deal?

New floors, appliances, heating/cooling, etc.

What was the outcome?

Fully rented property since listed for rent in May 2020. Actually have people contacting me before I advertise a unit available.

Depends on the area you are looking and distance you want to travel. But I have seen some >1% on paper deals listed on the MLS for MSP area. The broader you look in the area the better chance of finding a deal. Otherwise get involved in local meetings and begin looking for off market deals.

Why the MSP metro area? What about outside the metro area? Have you listened to Episode 402 of the BP podcast?

What have people heard about late fees in Minnesota with the eviction moratorium? Can these still be charges/collected? I realize too that the moratorium is currently scheduled to end in MN within a couple weeks.

Where are you moving from? St Peter will have a decent market since it is a college town and close proximity to Mankato. Agree that primary focus may be cash flow and not appreciation. BP insights may help with the outlook.

Signed a new lease this month. There is still a market for renters!

@Maxwell Kaplan I am not planning on selling this duplex for a while, but it would be about 6%. 

An update. After the Governor of MN called a stay in home for 2 weeks yesterday, I reached out to my tenants and provided some links/sources for them and asked they to contact me if they become negatively affected by the virus.

Stay safe everyone!

Appreciate everyone's insight into this questions and discussion. @Brian Briscoe, I have been and continue to look at rental assistant programs available. I will look into United Way. 

@Evan Kraljic, I've also decided to not reach out to my tenants because I do not want to promote not paying rent (when it can be afforded). However, the research I will be doing will be helpful if tenants start reaching out and will work with them on rent, directing to unemployment, finding assistance, or to delay payments.

More to come as all the state and federal assistant programs (mortgage forbearance, rental assistance, etc) are disclosed. 

Cheers and stay safe everyone.  

Have you reached out to tenants now that the governor has called for a halt on evictions? Have your tenants started reaching out to you that they cannot pay from covid? What resources are you sending to tenants for rental assistance? 
I have only found this link for MN so far. https://www.housinglink.org/Li...