All Forum Posts by: Noah Chappell

Requesting references for a great property manager (2-4 unit properties) in Minneapolis. Ideally this would be someone you've worked with at least 1-2 years and has been consistent. Many thanks in advance! Sorry for redundant question! 

It is true that other cities with rent control haven't imploded, so maybe things will work their way out, but those were also some of the most desirable living locations in the country and would be attractive no matter what.. I'm just not sure St Paul has the inherent appeal to prosper in the same way. 

Yeah I'm pretty confused about this whole thing.. 

First off, St Paul has a somewhat neglected housing stock in certain areas which predictable has under market rents and has shown signs of revitalization. With this initiative, is there any incentive whatsoever in buying distressed assets and fixing them, only to not be able to raise rent to market, unless you appeal to some ambiguous exception? 

Second, I think this will really cause the city to descend into segregated ghettos, where low income renter districts are divided from high income owner occupant areas, no mixing as no homeowner would live in an area where properties are neglected (not by choice but by necessity given lack of any means of recouping investment in improvement), and no investor would buy in a high price area where there's no chance of rent increase as gentrification occurs. 

Third, as other's have mentioned, I simply can't see how any investor whoever it may be would every purchase any property in St Paul after this initiative, so there goes development, including that of new or renovated affordable housing, and also of entertainment, shops, etc, which attract the affluent into the city and stimulate the economy. 

I'd go so far as to say this may cause a drop in asset prices, particularly of larger assets which can't be occupied by house hackers. 

I've read articles stating within hours of the initiative, developers called large projects to be halted and cancelled plans.. 

I don't know everything, so I trust you'll let me know if the above is exaggerated or overstated.. I'm not really sure how to proceed but I sure am not planning to buy in St Paul for foreseeable future. 

@Kevin Ivey I've been happy with Urban Enterprises. They're best in the S Minneapolis region. Thanks. 

@Marcus Johnson is there a reason you don't cash out refinance your property and purchase another duplex in your area? Based on your projected numbers, you could get similar return, and your appreciation on separate property would be better. That's not to mention it would be a fraction of the effort. 

@Tyler Watson welcome. 

I would definitely do your first BRRRR in your local market, maybe 30-45min outside of the city or in a C area. I think without any hands on experience the risk of investing out of state just far outweighs the benefit.. remember has has been stated you'd be competing from a distance with expert local investors which would be tough to do.

For wholesaler, I'd join every local meetup, FB group and go through the listings on FB marketplace and CL daily. Reach out to every wholesaler you can find and get on their mailing lists. Have conversations with them and communicate clear criteria. Let them know you're ready to go with a hard money lender you've spoken to, and get an inspector to be ready to walk any prospective property with you (since wholesalers won't allow inspections.) If you do that I guarantee within 3-6mon you'll have something under contract. 

For other advice, start with something small and safe - maybe a 1200sq ft 2/1 in a C area. Just prove the concept. 

Good luck! 

Not sure since I've handed this off to property management from day 1, but all the luck if you end up trying it! 

@Dominick Galinis again I agree with @Brandon Sturgill. I don't see how you know you'll be in an instant equity position, this seems too good to be true and speculative. Remember, "you make your money when you buy." I'd go with 3 well chosen houses in a stable Ohio market any day. Admit though I have a bias towards what I know and am comfortable with, so if you're confident in strategy 1, best of luck. 

@Moses Carrillo I second everything that @Brandon Sturgill said. House hack into a C class 4 plex with value add potential. While improving that take on another 2-4 unit you can BRRRR. Always have 2 projects going at once. Build your systems. In a few years move up into a 10-20 unit using your equity. It will be a grind but if you follow that formula you'd be financially free in less than 10 years.

@Jackson Mertes I would hand that and most other tasks off to other people on your team from day 1. As a business owner, your energy should be spend finding the right people for each task and on oversight, not doing the tasks yourself. "Who not how." An essential task of even the most basic property management service will be screening and placing tenants.