Amazing Minneapolis Investment Property Deals
Last week I toured several duplexes in NE Minneapolis with a client. All of them were bank owned (foreclosures) and all needed some rehab. I was amazed at how low the prices had gone for otherwise decent buildings in decent neighborhoods.
Two of the three buildings needed around $20k to rehab the bathrooms and kitchens One was priced at $165k and the other was priced at $115k. They were located about 4 blocks from each other. The lower priced building needed some additional work, but I would not say it was NOT $50k worth. It was a typical investment property in NE Minneapolis that had been neglected and the repairs had been deferred for many years. It was an otherwise solid building.
The third duplex that looked at was definitely a find. It was 2 bedrooms up and 2 bedrooms down. Both units needed cleaning and paint, and the upstairs needed carpet. We estimate that if you wanted to get by with the least amount of money invested (in rehab), you could spend less than $5k to get the building rentable again. Best of all, this property was listed for $137k. It had sold 2 years previously for $225k and the owner went into foreclosure recently.
There are amazing deals in all parts of the Twin Cities and even the greater Minnesota area. Now is the time to be a buyer.
Everything has come down from 2 years ago. $137K is not a fantastic deal. Stop looking at what things were two years ago and start looking at the fact that prices are low and staying there or even still losing value. These properties would be DEALS if they were in the $90K range. If you fix them and rent them they will be roughed up in two years and the values may not have gone up. Be careful.
Hey Dog-
Thanks for the comment.
Actually, the post you commented on was from August 2007. I agree. $137k is NOT a great deal in today’s market.