All Forum Posts by: Spud Davis

Hello, I am looking at rehabbing/putting money into a investment property. My question for those in the twin cities who BRRRR, what lenders are you using the borrow against the appraised value of your property? As I am new to BRRRR'ing I'm also interested to hear what you each do in order to add value. I'm looking at replacing the roof, redoing bathrooms and kitchens, adding storage units, and updating the basement walls, also landscaping.

Cozy merged with apartments.com and they no longer have the ability to put in maintenance requests or to communicate with your tenants.

@Adam Tafel Yes I'm realizing that throwing 1300 in the proforma feels nice but isn't reality.  Although I'm looking at this to holder shorter term 1-3 years. The 1 year return won't be great, and there isn't enormous upside with the location that makes me think it will boom. However this may help me negotiate if I do look to move forward.

@Noah Chappell I appreciate your insight.  It is actually all sub metered, all have their own boilers, water, gas.. everything. So an easy value add once I can change the lease.

And yes, as I begin to look further at the numbers 1100-1200 may be more realistic.. definitely a tougher decision when you add in the emergency order. Never would have known that without asking on here!

@Evan Kraljic Good insight, I appreciate it. There are outlets and air vents in that wall. So will have to get a contractor out there. Thanks!

@Daniel Anshus Thanks for the feedback Daniel, I'll send you a message.

@Evan Kraljic I appreciate the feedback, keep it coming.  The tenants are all surprisingly in month to month leases.  I wasn't aware there were new rules during covid. Thank you for mentioning that. That definitely complicates things (just looked up the covid rules). Just so I'm clear, right now, I wouldn't be able to raise rents to say 1100, but in a normal world I could/give them notice to vacate?

The extra bedroom is currently about 66 sq feet. Walls are about 8 feet each(includes windows, heat, outlets). So I will likely need to move the wall out, which I still need to understand how costly that will be.  Is a contractor the best person to give me an idea on the cost/issues with moving a wall?

Hello friends,

I'm looking to acquire my first multifamily property.  One property I'm looking at has four 1-bedroom units (all occupied) $900/mo, and I plan to add a bedroom making them 2 bedroom units 1,300/mo. My first question, how do I add a bedroom or do any serious updates while the tenant occupies the unit? (Thinking if I were the tenant I wouldn't want my unit updated to a 2 bedroom, just to get notice shortly after that my rent is 1,300).  Do I have the right as the owner to do construction, are there Minnesota laws I need to abide by?

I'm trying to figure out how to best add a bedroom, raise rent, and also not feel like I'm ruining 4 tenants lives (obviously I'd like to do right by everyone and also be able to create the value in my investment.)

Next, the current owner pays all water, sewer, trash, and gas.  I plan to have the tenants pay for these eventually.  Again, while the tenants are in their leases, can I simply give them notice that they will need to pay an additional $20/mo for utilities.  Are there Minnesota laws I need to abide by?  Thank you for any insights.

Last (just a side thought if you're willing to give additional insight)

 I'm wondering specific to us here in Minnesota. What are the top value adds that add value to a property in your opinion.  I've read a few books and it seems updating bathroom, kitchen, minor landscaping, painting, adding coin laundry, and storage lockers. I'm wondering if I have say 30k to update a 4 plex and say everything can/has the ability to be updated, what are the top items that 30k can turn into adding 90k in value(just a example number). Any no-nos or things to stay away from?