All Forum Posts by: Tarun Kapoor

I have a signed purchase agreement for this fourplex for $328,000 in Minneapolis. Its a 2 story building with 2 units on each floor and an unfinished basement. Total 2500 sq feet above ground. There is gas based central heating. The electrical and the furnace are all new.

We have 5 days to do an inspection and back out ...

In my deal analysis model, I had put $150/month as insurance premium. Since yesterday i have called 2 insurance agents and both say that as per their system the replacement cost for this place is $550,000 and the insurance premium comes out to be $400/month, which is a deal breaker.

We really like the place and would love to figure out a way to keep.

Anyone have any ideas on bringing the insurance costs down ? (Moving my other insurances to the same company is not helping by that much)

Hi Robby, did you have to pay the annual membership of $179 to attend the MNREIA meetings ? Have the meetings been helpful ? (Not in terms of RE knowledge but in terms of finding deals that havent made it to MLS)

Hi guys, I am in Minneapolis as well. As some have mentioned, its hard to find deals with CAP rate as attractive as others on BP are finding in other cities/states around US. I have been pretty serious for about 1 year. 3 offers i made in the last year on SF properties didn't win because other offers were higher. Finally, we closed on a condo in St Paul, last week. Its a 5 year old building. The condo was priced at 290K in 2007. I bought it for 145K. it was unoccupied for 3 of the last 5 yrs. The rent is around 1650..

It seems like the agents have deals that they give to their favorite clients. My suggestion is that we form a group and approach an agent. Please contact me on my email if interested.

Please help a newbie out. I am finding bp as a great source of information so far and trying to take the next step in becoming a landlord. These are the numbers i get running through the deal spreadsheet. Thanks in advance everyone!!!

Purchase Price: $149,500
Initial investment (20% down + closing costs): $36,300

Gross Operating Income : $16,500
(include 1 month vacancy)

Total Operating Expenses: $5,050
(include taxes, hoa, insurance,
maintenance of 1500/yr
as property is quite new)
-----------------------------------------------------------------------------
Net Operating Income: $11,450
Annual Debt Service: $-6,634

Cash Flow Before Taxes: $4,816

Ratio Information:
----------------------------
Loan to Value 78%
Cashflow / Initial Investment 13%
Cashflow / Assets 3%
CAP Rate 8%

Hi everyone,

I am new to this forum so let me introduce myself. I own a condo where after the 20% downpayment, the property cash flows. I have been reading bigger pockets for a while now and find it extremely informative and useful. I wish I had been reading it for a couple years. I need some advise so making my first post here. At this point, I am interested in buying a SF that can cash flow as well after some initial downpayment. We saw one that has
1. Lot of custom work done in the house. The house is in very good shape overall.
2. Master on the main level along with huge kitchen area and lots of entertaining space
3. 3 bedrooms in the lower level, which is a walkout. Big windows and doors in the lower level but it still has a bit of basement feel to it. I guess you know in your head that you are going down the stairs and not up. There are CO, smoke detectors etc on the lower level and there is a security alarm too.
4. Best school district in Minneapolis
5. Huge backyard
6. Total 4500 sq feet including the lower level bedrooms.
7. The price is very attractive

Based on rentals in the area, it should cash flow easily. However I am not sure is that if people would like to rent such a floor plan or even buy it 10-15 years later when I sell it? There are few other homes like this in the neighborhood.

Because of the school district this should attract renters with kids but are people ok with their kids sleeping on the lower level?

Do you think I should think about building another room with a bathroom on the main level ?