All Forum Posts by: Noah Chappell

@Andrew 

@Andrew Carlson Don't quote me, but my understanding is evictions are only banned for nonpayment of rent if the tenant can prove they'd be put at increased covid risk by moving (ei if they needed to move in with others, etc,) other violations of the lease are fair game. 

For cars, clutter, etc, I've always had my PM send some type of documented correspondence saying we'd remove the item at their cost by a certain date if tenants don't, then send a documented follow up a few days before. If it's valuable to them, they'll move it. Either way, the problem will be solved.  

If the tenants are otherwise good, I'd probably just deal with the weed smoking, pity to evict for that alone if they're otherwise paying considering the difficulty of finding tenants right now, etc. 

Echoing above, I have a vacancy in both Minneapolis and St Paul right now, and we aren't getting the interest I'd expect. I'm not sure what the answer is. In a few weeks I'll probably fire rent them at a low price or with 1st month free on 6 or 9 month leases just to get through the winter/ pandemic/ recession/ riots, then hopefully renew or rent at market price again next yr. 

@Karl B.Great question! The aim is to do a full BRRRR and pull all the money invested out, and still get around $200/door/month afterwards. The rent/price ratio is a little tricky, since on this type of deal the rents are generally way under market prior, but if rented they might be 1.5% or better deals at purchase, then 1% or less at the time of refinance.

@ty 

@Ty Jackson are you syndicating? Partnering? Taking a private loan? I think you could pay out your investor pretty efficiently on a buy and hold deal using the ever-mentioned BRRRR strategy. Probably not on an MLS deal however unless you got really creative..

@Elizabeth Ashantiva congrats on the 4 plex in this hot market! If you're not getting hits, make sure your pics are great, keep your description short, sweet and inviting, and make sure it's broadly advertised. 

In winter you may need to low the price to get it rented, then offer 6-9mon leases, which will allow you to rent or tenants to renew with rent raised to market during the hot leasing season. 

Try to advertise the same or similar rent in a more appealing way. Ex 1 bedroom, $1150/month, for a limited time 1st month free and garage parking included at no extra cost when availability lasts! 

Unfortunately you may need to lower somewhat, $1175 total monthly is pushing it for a 1br that isn't new construction.. 

Good luck! 

Minneapolis and St Paul, horrible place, don't invest there.. ;) No, in all seriousness I'd focus on the macro, not the micro. Twin Cities still has strong indicators and great long term outlook that you'd hope for in a rental market. Is the game rigged against investors? I don't necessarily think so.. I just think you need to operate within the parameters that exist here. To argue that you wouldn't look at this market due to the riots would be like saying you wouldn't take a 4 plex downtown Portland for great price.. no-one would pass that up (unless it were physically burning.) 

@Jack Morey Hey and welcome. Love to help you in any way I can. Just shoot questions my way. Thanks. 

@Frank S. Thanks for sharing your compelling story. Try to keep it simple. Focus on the 80/20 principle and maximizing your return on equity. Keep the best performing part of your portfolio, which seems to be triple net commercials, and cash out refi/ 1031 exchange the poorly performing/ annoying part, which seems to be the residential. Transfer that equity into a nice stable C or B class multi family in a decent midwestern city. Could take 5 million and buy a 50-55 unit C class section 8 building in Cleveland managed by and experienced PM. The vacation rentals you could keep or sell, at your level don't know if it would be worth your time to make them short term rentals.. 

@Gary Garcia Thanks for the question. I have both "section 8" and normal rentals. For me renting to sec 8 has been a net positive, though you have to be careful if you want the experience to be ok. First, the name of the game is providing a clean, safe and decent place - nothing more. Aim for "tenant proof", but try to avoid over improving. This is not for your best property, but an older more durable one. There will be significant wear and tear, so avoid adding things (garbage disposal, dishwasher, etc) that will be high maintenance or expensive to fix - these things will be broken. Second, interview prop managers until you find out who specializes in sec 8, can do the paperwork, organize inspection, etc. Some will definitely try to discourage you but they really just are unfamiliar with the program. If you do all that and go into it with the right mentality, I think you'll have a positive experience and come out feeling good you're provided a decent home to low income ppl. I don't know about your city, but Minneapolis and St Paul have an affordable housing shortage, so the gov also cuts my property taxes by 40% to provide sec 8, which is an added benefit. 

@Ronald Coriolan I'd definitely look at finding a great city over going for cash flow, given over the medium to long term in the mid west the cash flow will likely come, but you can never change the location. Look at a city with strong growth potential, possibly a secondary market benefiting from the current exodus out of large metros, diverse economy that's strong in multiple sectors, travel there and makes sure it's got a good feel. Midwestern cities seem to be patchy.. go a few blocks in any direction and you could be in trouble, so important to experience the area first hand. Some cities that come to mind are of course Columbus, Milwaukee, some parts of Chicago or near Chicago on the Indiana side, Twin Cities of MN to which I'm partial though admit can be pricey, etc, etc. I heard Des Moines could be good. On the East Coast Baltimore and Philadelphia could be good. Even Detroit is looking up somewhat.. If you think and it's obvious the city will never go away, then you'll probably have success if you buy at a good price and in a decent area.