All Forum Posts by: Noah Chappell

@Alley Carlson welcome!! Unfortunately you're more likely to catch a pterodactyl with a pokeball in NE Minneapolis than find a 2% deal.. just don't exist, never on the MLS, and very rare to find an off market owner who doesn't know the value of their property, unless they've lived out of state for years under a rock. That's not to say you can't be successful in this market, as Daniel and Jordan have said, you just need to have imagination. With rent/price ratio, use your projected rent, and use your total purchase price + repairs for price. If you do that and can get a 1.35 or 1.4% deal, I'd say you'll likely hit your goal of $150-200/unit/month. I think that is totally possible. Do reach out if you'd like some ideas on areas to look.

@Jessica M. Hi Jessica, thanks for sharing your compelling situation. You could make improvements to rent your houses at top dollar. Then you could take an 80% home equity loan against your houses. Put this $800,000 into into an 8-10% cap rate apartment building. Your renters would pay your mortgages (maybe bump your mom's rent a little to cut even). You'd receive $64-80k yearly passive income from your apartment building. 

I know there are some moving pieces here, but in your current situation you could be financially free quick if you play your cards right. 

@Account Closed Hmm.. looks like you're completing a high level project in a hooooottt market with an amazing profit.. why are you looking to shift? I'd say rinse and repeat! 

Ugh I feel that.. I'm having trouble renting a decent fresh 2br/1ba in Minneapolis for $1,200.. 

@Jacob Kinneman it was never clear to me, would you consider a cash buyer someone with pre approval from a lender to be used on a financeable property?

@Max Tedford what brings you to Minneapolis and St Paul if I may ask? 

@Cesar Castillo just thinking 80/20 rule I think your main skill to develop as a BRRRR investor and the one that will mean your success or failure is your ability to identify that specially asset whose value your can maximally increase with minimal work. This is your essential task. If you can do that well, everything else can be medicare (though not a total disaster), and you'll still come out winning. I'd try to sharpen your skills by tackling any little thing near your home first, maybe some rinkydink 2br/1ba, just to be able to be on site and get the process into your brain. Once you know what to look for, you can expand out of state to markets that are maximally advantageous for BRRRR.

@Zachary McDonough I think you can have success with a BRRRR, even in an expensive market. I've had most success with out of state owners who are motivated and not in tune with the local market. In fast appreciating markets, they may not have received the memo regarding price fluctuations in last several months, especially in these tumultuous times. I'd take advantage of your local knowledge and the fact that unlike stocks the real estate market is not efficient.

@Corey Reese to take the 50,000 ft view, try to determine how uncomfortable you can sustainably be over time. If you have a high tolerance, house hack and BRRRR a wrecked 4 plex in a transitional neighborhood in the best emerging market across the country over and over for 10 years. Other end of the spectrum if your tolerance is low, house hack a nice singe family near you in a good area that breaks even as a rental when you move out. Either way you'll benefit over time, though in the first example your progress will be accelerated. Important thing is you define where you fall on the spectrum early on, or you likely wont get anywhere at all.

@Jay Styles thanks for posting. Admittedly you are in a tough spot, expensive market, not too much capital, high debt to income ratio, low credit score. If you can't get a conventional loan right now then FHA is out, depending on how low your credit is.. think it still needs to be high 500s at least. I think really your best bet is to get into something you can BRRRR or flip from day 1 to double or triple your 15k.. maybe try to get a hard money loan on a wrecked 1br/2ba like literally next to skid row, then build from there. I wouldn't recommend going for a 60k rental in some distant state, this is almost sure to a stagnant investment in a rough area. Instead, I'd try going to a rough but decent area of LA and trying a BRRRR deal there. However, my cousin did just buy a decent single family in Columbus in the 60s..