Hello Minnesota Investor(s) and thanks for responding. I am thinking (seriously) about purchasing a piece property in a small town (about 7k people) west (really west) of St. Paul/Minn area. The only problem that at the price their asking I will just about break even. I am not sure about the appreciation in the area. (Also this property is not your typical residential property) I have heard about 4% a year. The property I am looking at a converted duplex. Each unit is about 2k square feet and in an excellent area (from the realtor). There is also ALOT of other space that can be converted into another unit for about 30K. Additionally the difference between what I am paying for the property and what it was aprpaised for last year is about 40K. The property generates about 1000 a month currently (about $500 per unit) . With that in mind.....what do you think....should I go for it ? Do you know of any other investors who would like to participate in this with me (in any way). Please feel free to call me "Dee" Ph;510-468-7419null
From what I can see without knowing where the property is or what the deal intails. Few things.....small towns can be hard to find good renters. Next are you paying the utlities? Have you seen the property? Old houses can (are) money pits. If it is a convert old place you will find some very fun things. Any way I am not sure if I helped....
There did not seem (via internet seraches) seem to be alot of rental housing in the area.
Are you saying that I cannot believe atleast 3 realtors in the area who say that there is a waiting list for renters?
I have no particular issues towards Minnesota....I just happen to find this deal. Although, I do have some distant relatives in the St Paul/Minn area.
I need to research the common heating area and utilties associated with that as well as snow removal.
As things stand now we will just about break even.
Regarding appreciation....I was expecting to hang on to the property for a while (3 - 5 yrs or more) especially since I intend on taking money out of the property.
My main reason for going for this is EQUITY. I can use this to purchase other properties that I know will cash flow (based on my research) I know of several 5 plexes in states like M, OK that will cash flow well over $2,000 in the 85 - 99K range. which will even out my portofoio within about 90 days. With the cash infusion (via refi) from something like the Minn property I can purchase a couple of those and create that positive cash flow we are looking for. LEVERAGE...
I have researching Investments properties for over 2 years.....I have learned almost more than what I want to know.....it is now time to make a move.
Again, my main reason for this is EQUITY and what can be done with that.
Sounds like you have a great plan. Without knowing the town it is hard to say if they are pulling you leg or not. I have rentals in several towns but I stick to larger areas also like the town to have a college or university. Are these realtors the same people who are selling the place or managing the place?
A loss if you can handle it is good if it helps you toward your goal. I think you are well on your way. If you make it to my wonderful state let me know.... We are pretty proud of our little ice-box.... Happy investing
I would agree, we would have to know what town it was in. If it is within 60 miles of Minneapolis and along the interstate, you would have very little to worry about. Anything beyond that, I would be hesitant to purchase it. Small towns in Minnesota are all struggling due to the decline of the family farms. Nearly all of them are shrinking making rental property less and less valuable.
I invest in larger markets, that have a good mix of industry and at least one college.
There are a lot of investors here and we are all minnesota nice... What do you need?
Hello Minnesota Investor(s) and thanks for responding. I am thinking (seriously) about purchasing a piece property in a small town (about 7k people) west (really west) of St. Paul/Minn area. The only problem that at the price their asking I will just about break even. I am not sure about the appreciation in the area. (Also this property is not your typical residential property) I have heard about 4% a year. The property I am looking at a converted duplex. Each unit is about 2k square feet and in an excellent area (from the realtor). There is also ALOT of other space that can be converted into another unit for about 30K. Additionally the difference between what I am paying for the property and what it was aprpaised for last year is about 40K. The property generates about 1000 a month currently (about $500 per unit) . With that in mind.....what do you think....should I go for it ? Do you know of any other investors who would like to participate in this with me (in any way). Please feel free to call me "Dee" Ph;510-468-7419null
From what I can see without knowing where the property is or what the deal intails. Few things.....small towns can be hard to find good renters. Next are you paying the utlities? Have you seen the property? Old houses can (are) money pits. If it is a convert old place you will find some very fun things. Any way I am not sure if I helped....
There did not seem (via internet seraches) seem to be alot of rental housing in the area.
Are you saying that I cannot believe atleast 3 realtors in the area who say that there is a waiting list for renters?
I have no particular issues towards Minnesota....I just happen to find this deal. Although, I do have some distant relatives in the St Paul/Minn area.
I need to research the common heating area and utilties associated with that as well as snow removal.
As things stand now we will just about break even.
Regarding appreciation....I was expecting to hang on to the property for a while (3 - 5 yrs or more) especially since I intend on taking money out of the property.
My main reason for going for this is EQUITY. I can use this to purchase other properties that I know will cash flow (based on my research) I know of several 5 plexes in states like M, OK that will cash flow well over $2,000 in the 85 - 99K range. which will even out my portofoio within about 90 days. With the cash infusion (via refi) from something like the Minn property I can purchase a couple of those and create that positive cash flow we are looking for. LEVERAGE...
I have researching Investments properties for over 2 years.....I have learned almost more than what I want to know.....it is now time to make a move.
Again, my main reason for this is EQUITY and what can be done with that.
Sounds like you have a great plan. Without knowing the town it is hard to say if they are pulling you leg or not. I have rentals in several towns but I stick to larger areas also like the town to have a college or university. Are these realtors the same people who are selling the place or managing the place?
A loss if you can handle it is good if it helps you toward your goal. I think you are well on your way. If you make it to my wonderful state let me know.... We are pretty proud of our little ice-box.... Happy investing
I would agree, we would have to know what town it was in. If it is within 60 miles of Minneapolis and along the interstate, you would have very little to worry about. Anything beyond that, I would be hesitant to purchase it. Small towns in Minnesota are all struggling due to the decline of the family farms. Nearly all of them are shrinking making rental property less and less valuable.
I invest in larger markets, that have a good mix of industry and at least one college.