All Forum Posts by: Dustin S.

Is the population growing or shrinking in these areas? I'd think about 20-30 years from now: Will these small cities still exist?

I've been looking for conversion opportunities as well. I don't understand the "commercial standards" vs "residential standards" comment. As far as I'm aware, each new dwelling unit must meet present day code.

In Dayton's Bluff (if I remember correctly), my guess is that you are going to be dealing with a lot of people who have SOME form of criminal history. Some prospects may interpret your criminal history check to mean that they can't have had ANY issues with the law at any point in their lives... Which would obviously be ideal. My guess would also be, if the neighborhood is anything like what I understand about the frogtown area, more residents are going to own a dog.

P.S. you may want to consider offering a month to month lease with 60 day move out notice, or lease until the end of May - August.

One more thing: I would not eliminate smokers. Lower income people (including a lot of renters) tend to smoke. I would indicate that there is no indoor smoking.

I signed up to attend to January class (awaiting confirmation from the city). The most recent fire inspector I had go through told me that the Landlording 101 class is required for any property owner who has obtained their first St. Paul certificate of occupancy in 2009 or later. Wasn't happy to have another hoop to jump through.

You have one year to attend the class from the time that they issue you this requirement (once you receive your certificate of occupancy).

Sorry - Here:

https://www.stpaul.gov/departments/safety-inspecti...

You could call zoning and ask or apply for a variance, but it is unlikely, from my understanding, to be able to convince them that the conversion complies with the following guidelines:

You would need RM1 or higher. RT1 allows for up to 2-family properties.

I also ran numbers on this property a few weeks ago for 3.5% FHA and came up with very similar numbers except that I estimated property insurance at $225 and slightly higher mortgage insurance.

I believe that this mortgage broker is incorrect.

You need to move in within 60 days of closing and occupy the property as your primary residence for at least 1 year.

You are allowed to have roommates, family, tenants in your primary residence so long as you are still living there for 1 year. It's really none of their business what you do so long as you are fulfilling the obligations that you agree to when you close the loan (move in within 60 days, live there 1 year). I wouldn't even mention it.

July, 2011 - I had moved back home with my dad while I finished a graduate degree and was employed at the same job I still hold today.

I had been maxing out my 401k at work and eventually realized that I didn't want to wait until my 60's to retire, so I began looking for real estate. Also, my dad was becoming anxious about his son being nearly 25 years old and still living at home, so he was going to begin charging me rent. I am cheap/frugal, and so figured that I could live rent free if I purchased a multifamily property and occupied one of the units.

I really didn't know what I was doing. On my birthday, I noticed a 4plex listing near Hamline University (just off Snelling Ave). My grandpa had told me that there was nothing good north of I-94 (implying higher crime). The building was a foreclosure and unoccupied. After walking through all the rooms, I kind of just stood around. The real estate agent asked, "So... do you want to put in an offer."

I offered $181,000 and the bank countered with $169,900 :) - The listing agent didn't believe that I should need to compete with the investors who were "clamoring" over the property. The bank really wanted an owner-occupant.

I listed the 3 non-occupied units at $720 / month and provided free WIFI and laundry. I have since removed the WIFI and have the following rent roll:

1: 775 (original occupant)
2: 975 (market rate)
3: 865 (long-term occupant)
4: 995 (market rate)

I did convert the flat roof to a pitched 5/12 (expensive!), repaired the stucco exterior, and put a bit of money into most of the units, but this purchase has been the best financial decision I've ever made.

I did a cash-out refinance, and could probably do it again within the next few years if real estate doesn't collapse. :)