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Friday, October 12, 2012

Buying A Fourplex In Minneapolis Or St. Paul

If you are looking to buy a fourplex in Minneapolis or St. Paul you will find it more difficult that buying a duplex.  The issue lies in the shear number of fourplexes versus duplexes in St. Paul and Minneapolis.  There are well over 10,000 duplexes in Minneapolis and there are just 963 fourplexes.  There are even less legal triplexes that's why you won't hear me talking about triplexes much.

The other issue that prevents you from having the opportunity to buy a fourplex is that most owners of fourplexes are investors.  Unlike duplexes, where you often have owner occupants that decide to sell when they are moving out, fourplexes are often held by investors and they generally won't sell them unless they can do a 1031 Exchange and move up to a bigger property.

I have had a number of investors that like the Idea of buying a fourplex, but are often disappointed when they can't find good deals on them. 

The other issue with finding a good deal of a fourplex in the Twin Cities is that with the small number of available units they often go for a premium.  I often find that people can get the same cash flow on duplexes that they can on a fourplex! 

There are several positives to buying four plexes: one roof vs two (with two duplexes),  one property to maintain versus two etc.  The other key if you buy a four plex instead of a duplex you will be able to raise the rent on four units rather than one. So, when rents are rising, like they are now, you will make more money each month. 

I have a four plex coming up for sale in Uptown that will be a short sale and hopefully will be a great deal for the new owner.  I am currently working on a total of 18 short sale multi-family properties that will be coming on the market over the next month.  If you are looking for a great deal, and have first shot at it before they go on the market call me 612 554 3199.

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